Exploring Competitive Intelligence Effectiveness on SMEs Performance: The Meditating Influence of Entrepreneurial Orientation

Drawing on the Resource-Based View and the Dynamic Capabilities Theory, this study aims to investigate the effect of entrepreneurial orientation on small and medium-sized enterprises (SME) performance. Additionally, it examines the mediating role of market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. Finally, the study explores the sequential mediation effect of market orientation and learning orientation between entrepreneurial orientation and SME performance to understand how the joint mobilization of these strategic resources transforms entrepreneurial actions into superior organizational performance. This study adopts a quantitative approach, using convenience-based non-probability sampling to collect data from 113 managers of Moroccan SMEs operating across various sectors. The collected data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The results indicate that entrepreneurial orientation has a positive and significant direct effect on the performance of Moroccan SMEs. Furthermore, market orientation partially mediates the relationship between entrepreneurial orientation and SME performance. However, the mediating effect of learning orientation was found to be non-significant in the link between entrepreneurial orientation and SME performance. Finally, the study found the existence of a sequential mediation effect exerted by market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. This study is the first to explore the sequential mediating role exercised jointly and successively by market orientation and learning orientation in the relationship between entrepreneurial orientation and SME performance. Notably, the entrepreneurial orientation of SME in Morocco has not been previously studied, offering a valuable contribution to the literature on emerging economies, which remains underexplored in entrepreneurial orientation research. Lastly, a surprising result emerges compared to previous studies: learning orientation does not play a mediating role between entrepreneurial orientation and performance, thus challenging the universality of this mechanism and opening new avenues for research into contextual factors, particularly in SMEs of developing countries.

Because small and medium-sized enterprises (SMEs) are pivotal to the health and vibrancy of economies, it is crucial for researchers to understand the factors that significantly underlie SME performance. Two of the most widely identified antecedents to SME performance are innovation and networking. However, despite widespread attention, the theoretical and empirical status of the relationships between innovation, networks and SME performance remain uncertain. Some researchers note that claims regarding a direct positive relationship between innovation and networks with performance fail to adequately account for the variables that mediate this relationship. In contrast, while much research has been undertaken into the performance benefits of innovation and networks, the exponential increase in the number of publications heralding the performance benefits of business model design and business model innovation received very scant empirical support, almost non-existent for SMEs. Business model design is seen as a powerful mechanism for unlocking and enhancing the value of business processes, including innovation. Empirical evidence presented in this thesis tangibly supports this assertion and thus creates a more solid foundation for future development of the business model view of the firm. The purpose of this thesis, comprising four studies, is to theorise and research the nature of the relationship between innovation breadth, networks and business model design with SME performance. The central research question of this thesis asks: How do innovation breadth, networks and business model design relate to SME performance? Study One systematically reviews a large sample of SME growth and performance literature to identify and interpret emergent concepts, themes, trends and gaps. Study One backgrounds the three empirical studies that that follow to argue, using Resource-Based Theory, that the resources required for developing competitive advantage are both physical and intangible; of the two, intangible resources have the greatest strategic potential. In other words, the thesis finds that SMEs lacking physical resources could develop more sustainable competitive advantage by relying more heavily on leveraging path dependent, socially complex, and causally ambiguous intangible resources. Social capital and technological competence, associated with networks and innovation, represent highly desired intangible resources. Business model design organises these resources to create value for the customer. Therefore, innovation across the elements of the business model when designing or reconfiguring the SME’s business model acts as dynamic capabilities that enhance SME performance. The systematic literature review is followed by three empirical studies that use longitudinal and cross-sectional datasets of Australian SMEs. Study Two introduces the concept of innovation breadth, as the number of distinct types of innovation that firms use, or their innovation diversity, and examines the linearity and temporality of its relationship with SME performance. This examination both confirms it to be positive and provides evidence of the diminishing and negative returns of innovation breadth. Such diminishing and negative returns are directly related to increased innovation breadth and the time lag between innovation implementation and performance measurement. Studies Three and Four examine the mediation effect of innovation breadth on the relationship between networks and SME performance (Study Three) as well as the mediation effect of business model design themes on the relationship between innovation breadth and SME performance (Study Four). The combined findings from the last three studies provide sound support that maintaining strong heterogeneous network ties will improve SME performance, but only when the social capital embedded in such network relationships supports innovation breadth. In addition, persistent implementation of moderate levels of innovation breadth would optimise SME performance, but the performance benefits of such innovations would only be unlocked if it is implemented within a coherent business model, designed around the novelty or transaction efficiency themes as primary value drivers. Collectively, the four empirical studies contribute to the SME innovation field by more precisely explaining the relationships between innovation breadth, networks, business model design and SME performance. This thesis therefore highlights and confirms the importance of intangible assets for SME performance and also accounts for the intermediate processes that translate these resources into SME performance by showing that innovation breadth and business model design act as dynamic capabilities. SMEs are advised to focus on building network relations that foster innovation breadth, to focus their innovation activities during any given year by limiting innovation diversity and to focus the design of their business models around either the novelty or efficiency value themes. Such knowledge offers guidance for SME managers who believe that all networking and innovation investments will improve their SME performance. Given the potential costs and risks of networking, innovation and business model design activities to SMEs, practitioners and policymakers are informed about the potential dangers of overextending limited resources and capabilities. A better understanding of how wide SMEs should cast their innovation net, how to construct optimal network structures, and how to design business models along dominant value themes may therefore greatly benefit theory, policy and practice.

PurposeThis paper addresses the mediating effect of structural infrastructure capability on the relationship between entrepreneurial orientation (EO) and SMEs performance in emerging economies, focusing on Nigeria. It addresses the need to ensure that small and medium-sized enterprises (SMEs) are able to overcome the inherent challenges in their external environment actively and, thus, contribute to economic growth through internal management variables.Design/methodology/approachThe study adopted a survey design, utilising a sample of 377 SMEs covering the six geopolitical zones in Nigeria. A questionnaire was used for data collection, and data analysis was conducted using partial least squares structural equation modelling (PLS-SEM) with the aid of SmartPLSv3.FindingsThe study found that innovativeness and proactiveness, as dimensions of EO, have a significant effect on SMEs' performance. Risking-taking, however, showed no significant effect on performance. The study found that structural infrastructure capability significantly mediates the EO–performance relationship.Practical implicationsThe paper provides practical implications for society, as managers and SMEs' support agencies in emerging markets can be encouraged to focus more on internal management activities to support knowledge sharing within the organisation, given its relevance to improving performance, rather than focusing only on EO.Originality/valueThe study further strengthens and validates the resource-based view (RBV) theory and contributes to expanding knowledge on the relevance of internal management variables (knowledge sharing) in managing small and medium-scale enterprises. The study further advances theories regarding knowledge management's role, as a function of internal management system in the EO–performance relationship, thus helping to close the research gap related to these relationships from an emerging-economy perspective.

PURPOSE: The purpose of this study is to aid the small- and medium-sized enterprise (SME) sector in Ho Chi Minh City (HCMC), resulting in enhancement, improved management performance, and sustainability in adopting beneficial competitive practices aligned to the new era. The study was conducted to determine the key managerial factors that affect the performance of Vietnamese SMEs. We analyzed factors like business planning, organizational commitment, strategy implementation, and managerial control, adopting the budget process as the mediating factor, as it was determined to positively affect SME performance. METHODOLOGY: In the pilot study, we collected 105 samples using the convenience technique and analyzed the results to examine and validate the reliability of the research instrument. A quantitative approach was used in the pilot study, which tested for reliability using Cronbach’s alpha and exploratory factor analysis (EFA) with the software IBM SPSS 20.0. The real study was conducted using quantitative analysis, where the randomization technique was applied to 403 suitable samples. A full quantity of data was tested using Cronbach’s alpha, confirmatory factor analysis (CFA), and EFA. Structural equation modelling (SEM) was used to test both the conceptual framework and the hypothesis of the real study. This study was conducted from October 2016 to June 2020. FINDINGS: Analysis of SMEs identified the mediating factor, budget process, as having a significant effect on the dependent factor, SME performance. Regarding the total effect on SME performance, among four independent variables, the factor with the highest positive total effect on SME performance was strategy implementation. The second highest positive total effect on SME performance was organizational commitment; the third highest positive total effect was business planning; and the fourth was managerial control. Therefore, it can be concluded that when SME managers change these key factors, they will change the level of performance for their enterprises. IMPLICATIONS: This research provides insight into the performance management of SMEs and how managerial factors affect the level of this performance management. In the results of study, the following key factors have been identified: strategy implementation, organizational commitment, business planning, managerial control, and the mediating role of the budget process. These independent variables have significant total effects on SME performance, and the theory’s implication builds on performance management to contribute to the field of management. This research model can be applied to management practices to restructure, innovate, and improve the overall performance of SMEs. Additionally, this study will provide SMEs with management procedures to compete, adapt, and enhance their sustainability within the global market. ORIGINALITY/VALUE: This model provides researchers and practitioners with the invaluable knowledge needed to manage enterprise performance, which will assist SMEs in developing as sustainable and competitive players in this new era.

The increase of social media (SM) has led to continuous deviations in how day-to-day entrepreneurial activities can be carried out. Additionally, studies devoted to SM entrepreneurship and SM are relatively limited and fragmented in their focus. However there is growing interest from scholars, practitioners and academia for upcoming studies and exploration within small and medium-sized enterprises (SMEs) context. This research explores the impact of entrepreneurial orientation (EO) on SM adoption and SME performance in developing countries. We employed the resource-based view (RBV) as the foundation for developing the conceptual framework The present study employed a closed-ended questionnaire to collect data from SMEs located in Pakistan. Partial-least-squares-structural equation-modeling (PLS-SEM) was utilized for the analysis of 423 responses. The results proved a direct positive link between EO–SMEs performance, EO–SM adoption, SM adoption–SMEs performance, innovation capabilities (IC), and SME performance. Partial mediation was found between EO and SME performance, and the significant moderation effect of IC was found between SM adoption and SME performance. This paper has implications for practitioners and researchers regarding SM adoption in the SMEs. It builds an empirical, multi-dimensional hypothesized model, including mediating and moderating roles affecting the relationships.

The increase of social media (SM) has led to continuous deviations in how day-to-day entrepreneurial activities can be carried out. Additionally, studies devoted to SM entrepreneurship and SM are relatively limited and fragmented in their focus. However there is growing interest from scholars, practitioners and academia for upcoming studies and exploration within small and medium-sized enterprises (SMEs) context. This research explores the impact of entrepreneurial orientation (EO) on SM adoption and SME performance in developing countries. We employed the resource-based view (RBV) as the foundation for developing the conceptual framework The present study employed a closed-ended questionnaire to collect data from SMEs located in Pakistan. Partial-least-squares-structural equation-modeling (PLS-SEM) was utilized for the analysis of 423 responses. The results proved a direct positive link between EO-SMEs performance, EO-SM adoption, SM adoption-SMEs performance, innovation capabilities (IC), and SME performance. Partial mediation was found between EO and SME performance, and the significant moderation effect of IC was found between SM adoption and SME performance. This paper has implications for practitioners and researchers regarding SM adoption in the SMEs. It builds an empirical, multi-dimensional hypothesized model, including mediating and moderating roles affecting the relationships.

Purpose This study examines the role of social media adoption (SMA), opportunity recognition (OR) and opportunity exploitation (OE) in mediating the relationship between entrepreneurial orientation (EO) and the performance of newly established small and medium-sized enterprises (SMEs) in emerging economies, with a particular emphasis on Ghana.Design/methodology/approach This study adopts a post-positivist philosophical stance and uses a quantitative approach and a survey design. A purposive sampling technique was used to select 336 SME owners and managers from Ghana’s manufacturing, trading and service sectors. Questionnaires were administered to source the empirical data for this study. Structural equation modelling (SEM) was used to analyse the proposed hypotheses.Findings The results reveal that EO positively and significantly influences the performance of new-born SMEs. SMA, OR and OE partially mediated this relationship.Practical implications This study is a wakeup call to policymakers, practitioners, managers and owners of recently established businesses. Policymakers should provide support and resources for newly established SMEs to adopt effective social media marketing strategies, bolstering their online presence and customer engagement. Simultaneously, they should invest in entrepreneurship education and create an environment conducive to innovation to cultivate an entrepreneurial mindset among fresh SMEs. Business owners and managers should proactively monitor market trends and consumer preferences, adapting their strategies to identifying and seizing emerging opportunities.Originality/value This study introduces a significant novelty to previous literature and one of the first to employ the dynamic capability theory to examine the interplay between EO, SMA, OR and OE in influencing the performance of new SMEs in the context of emerging markets. Furthermore, it extends the scope of understanding of the mechanisms through which SMEs can prosper in these dynamic environments. This unique combination of theoretical framework, comprehensive variables and contextual focus sets this study apart from existing research, enriching the literature on SME performance in emerging markets.

PurposeThe purpose of this paper is to investigate the influence of entrepreneurs’ social competence (SC) on small and medium-sized enterprise (SME) performance.Design/methodology/approachPrimary data of 250 manufacturing SMEs were collected through a survey method. The influence of SC on performance was tested using structural equation modelling (SEM).FindingsOverall, the findings suggest that SC dimensions have a positive influence on SME performance in terms of nonfinancial perspective. More clearly, the findings show that out of five dimensions of SC, which include social adaptability, social perception, social expressiveness, persuasiveness and impression management; social perception, persuasiveness and impression management have direct effect on customer perspective; persuasiveness, social expressiveness and social adaptability have a direct influence on internal business processes and social adaptability, social perception, impression management and social expressiveness are directly related with learning and growth. Contrary to expectations though, social perception and social adaptability were significantly and negatively associated with internal business processes and customer perspective, respectively, while there was no significant correlation between social expressiveness, persuasiveness and impression management with customer perspective, business processes and learning and growth in that order.Practical implicationsThe current study affirms that SMEs managed by entrepreneurs and managers who possess high levels of SC, may have a better performance compared to those operated by entrepreneurs with low levels of SC. This justifies a need for SME entrepreneurs and managers to work hard to improve their SC capabilities.Originality/valueThis study is pertinent and unique because, it extensively examines each of the five dimensions of SC in relation to nonfinancial indicators of SME performance. Besides, the study also provides additional evidence of the impact of SC on SME performance by suggesting that entrepreneurs who are socially competent are more likely to own highly successful ventures.

PurposeThis paper aims to investigate the effects of entrepreneurial orientation (EO) on the performance of small and medium-sized enterprises (SMEs) with mediating role of differentiation strategy in Pakistan.Design/methodology/approachA theoretical framework has been developed to base the hypotheses, as also to determine the exact approach in this study. To establish the influence of EO on the performance of SME, a five-point Likert scale questionnaire has been used to collect data from middle and senior managers who operate in SMEs in the manufacturing sectors. The sample illustrates 166 incumbents, comprising 68.07 per cent from middle management and 31.93 per cent from senior management operating in manufacturing sector of SMEs, by means of a stratified random sampling technique. The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested by using structural equation modeling (SEM) technique.FindingsEO, as a whole, presents a significant positive effect on the performance of SMEs. Moreover, differentiation strategy partially mediated the relationship between EO and performance of SMEs. Two dimensions of EO, proactiveness and risk-taking propensity, strongly increased firm performance while innovativeness, competitive aggressiveness, autonomy and competitive energy did not cause any significant change. The findings differ from the current view of western enterprises that innovativeness (INO) played a major role by increasing performance of SMEs. The results transpired that innovativeness (INO) tends to reduce performance of SMEs, but the p-value did not reach a high significance value.Research limitations/implicationsThe main limitation of this empirical study is comparatively a small size of the sample. The analysis of power suggests that a larger sample could have provided more reliable and extensive results. Regardless of that, the analysis of reliability, using the Cronbach's alpha, exhibited the consistency of outcomes in providing an accurate portrait of the EO influences on the performance of SME.Practical implicationsThe study verifies that two dimensions of EO have considerable effects on the performance of SMEs, while the others have not, whereas, the EO, as whole, has significant positive effect on performance of SMEs. These findings should be helpful for researchers looking for appropriate performance measures, and for entrepreneurs aiming at getting support for their decisions and evaluating their performance.Originality/valueThe current study appears to be first of its kind focusing on the link between EOs, as whole, and its dimensions, to performance of SMEs and differentiation strategies within the specific context of Pakistan.

PurposeThe impact of social media on organizational performance and entrepreneurial orientation is a critical topic for small and medium-sized enterprises (SMEs) in emerging economies. This study aims to examine how social media usage influences organizational performance and entrepreneurial strategies, specifically in the context of SMEs in Tunisia.Design/methodology/approachA cross-sectional study was conducted using a mixed-methods approach. A sample of 150 senior managers from Tunisian SMEs was selected through systematic random sampling, while 20 managers were purposefully chosen for in-depth interviews and focus group discussions. Data were collected using survey questionnaires, in-depth interviews and focus group discussions. Quantitative data were analyzed using partial least squares structural equation modeling (PLS-SEM) and regression analysis with AMOS, while qualitative data were analyzed using NVivo for thematic coding and contextual analysis.FindingsThe results indicate that social media usage has a significant positive effect on the organizational performance of SMEs, particularly in terms of enhancing visibility and customer relations. Additionally, social media positively influenced the entrepreneurial orientation of organizations, promoting more innovative strategies and better market adaptation. SMEs employing strategic social media usage experienced improved performance and more effective entrepreneurial orientation.Originality/valueThis research provides new insights into the role of social media in enhancing organizational performance and entrepreneurial orientation in SMEs within emerging economies. Unlike studies that focus solely on the technical aspects of social media, this study highlights its strategic impact on businesses. The findings offer practical recommendations for policymakers and entrepreneurs to maximize the benefits of social media for their organizations. This study contributes to the existing literature by utilizing advanced analytical tools such as AMOS, NVivo and regression analysis, offering specific insights into the Tunisian context and SMEs in emerging economies.

Purpose: The purpose of this paper is to empirically test the relationships between entrepreneurial orientation (EO), total quality management (TQM), and small and medium-sized enterprises (SMEs) performance. It specifically examines whether innovation practices (IPs) mediate the EO, TQM, and SME performance relationships.Design/methodology/approach: A self-administered questionnaire was utilised to collect data from owners/managers of SMEs in Malaysia. The validity and reliability of the instrument were evaluated. Structural equation model utilised to analyse the relationships using PLS 3.3.9.Findings: Statistical outcomes displaying a significant direct effect of EO and IPs on SMEs’ performance, while TQM displayed an insignificant effect on SMEs’ performance. For mediation effect analysis, the indirect effect of EO and TQM on SMEs’ performance through IPs was significant.Research limitations/implications: A sample of manufacturing SMEs was investigated using a quantitative cross-sectional research design. Future research could use qualitative techniques or a longitudinal research design for further information analysis.Practical implications: The research findings provide insights into the owners/managers of SMEs in today’s dynamic manufacturing environment, with a focus on EO and TQM as driving factors to enhance their performance.Originality/value: The research extends the literature on EO and TQM with a comprehensive understanding from the standpoint of Malaysian SMEs.

Adopting e-commerce in the business sector requires technological resources such as IT infrastructure, internet connectivity, software and hardware systems, as well as qualified IT personnel which often poses financial challenges for small and medium-sized enterprises (SMEs). This study investigates whether technology adoption by SMEs translates into competitive advantage and improved performance. The research emphasizes the Technology–Organization–Environment (TOE) framework, which highlights the role of technological readiness, organizational capacity, and environmental factors in shaping competitiveness. Combined with the diffusion of innovation theory, this framework is expected to guide SMEs in developing effective strategies for technology adoption. A quantitative approach was applied using survey methods and data analysis through Partial Least Squares Structural Equation Modeling (PLS-SEM). Purposive sampling yielded 398 SME respondents across Indonesia. Findings show that entrepreneurial orientation and technological readiness significantly influence SME performance—measured by personal wealth and firm growth—through competitive advantage. Entrepreneurial orientation exhibits a full mediation effect, while technological readiness demonstrates partial mediation. These results suggest that within the TOE framework, technology, organization, and environment must first generate competitive advantage before exerting a significant impact on SME performance. This study confirms that integrating TOE with diffusion of innovation theory provides a strategic foundation for SMEs to adopt technology effectively, enhance competitiveness, and achieve sustainable growth.

:Due to their significant role in creation of new jobs, rise in GDP, entrepreneurship and innovation, small and medium-sized enterprises (SMEs) are recognized as the the drivers of socio-economic growth, both in developed and developing economies. In Turkey, 99.9 % of all enterprises fall into SME category. Therefore, the significance of SMEs for Turkish economy and society is much higher in Turkey, compared to other emerging and developed countries. Small and medium-sized companies are faced with a number of challenges whereas the problems arising from “poor financial management” are reported as the major causes of business failures in SMEs. Strategic financial management (SFM) which is a research area that has attracted the interest of researchers after 2010, is one of the key managerial areas of SMEs, due to its vital role on the survival, growth and performance of SMEs. The purpose of this paper is to analyze the central role of financial management and identify the financial management challenges and practices that influence the organizational performance in Turkish SMEs, from a strategic management perspective. Within the course of this paper, the importance and challenges of SMEs in Turkey are presented in the first section, while the literature on strategic and financial management in SMEs are reviewed in the second part. In the third section, the recent strategic financial management concept, the implications of strategic financial management practices for SMEs in Turkey and the relationships between strategic financial management practices and SME performance, are discussed. Small and medium sized enterprise finance in Turkey is a developing research area, therefore this paper aims to make a significant contribution to the existing literature by analyzing the major challenges at the conduct of financial management in Turkish SMEs and the influence of strategic financial management practices on the performances of small and medium sized companies in Turkey.Additionally, the conceptual framework developed is expected to be useful to academics in developing an agenda for future empirical research.

Digital transformation plays a central role in the balance between technology and sustainability, especially for small and medium‐sized enterprises (SMEs) in Romania. This study examines the impact of the adoption of digital technologies on the competitiveness, development of digital corporate culture, digital management and ESG (environmental, social, governance) performance of SMEs in the manufacturing sector. Based on 463 valid questionnaires, a model was developed and empirically tested using fsQCA (qualitative comparative fuzzy set analysis) and PLS‐SEM (partial least squares structural equation modeling) methods. The results show that the implementation of digital technologies contributes significantly to improving the competitiveness, performance and ESG practices of SMEs. Companies with a clear digital strategy and an innovative digital culture not only have greater operational efficiency, but also greater social and environmental responsibility. The study makes it clear that digital transformation is not only a strategic driver for sustainability and innovation for SMEs, but also contributes to adaptability and long‐term success. Policy and practice are recommended to expand targeted measures and funding programs to support the digitalization of SMEs to promote the balance between technological advances and sustainable business.

PurposeThe purpose of this paper is to examine the influence of social media adoption on the performance of construction small and medium-sized enterprises (SMEs).Design/methodology/approachConstruction SMEs owners and managers in Nigeria were surveyed using questionnaires to gather data. Partial least square structural equation modeling (PLS-SEM) was employed to assess measurement reliability and validity, as well as the hypothesized paths provided in the conceptual model that formed part of the final conclusions.FindingsThe empirical finding showed that social media usage increased knowledge accessibility, reduced costs and improved customer relations and service for organizations. Overall, social media adoption was significantly and positively related to SMEs business performance. Also, the paper revealed that learning capability mediates the relationship between social media and SMEs performance.Research limitations/implicationsData for the study came from only one industry and one related line of business; thus, including more companies from different sectors or industries could be more interesting. The study's findings contributed to the growing body of knowledge about the impact of social media on the efficiency of businesses. Small and medium-sized businesses also need to understand and recognize the impact of social media on the organization's performance in order to achieve a long-term competitive edge from the adoption of social media.Practical implicationsAccording to the findings, small construction firms can benefit from marketing the brands through social media channels and improved learning capability. In terms of accessibility, cost savings and improved relationships with customers, research shows that social media promotion can be beneficial to businesses. A study like this has the potential to show how social media can help striving small businesses interact cost-effectively with customers all over the world, opening new doors for sales and continuous improvement.Originality/valueThe relationship between SME performance in Nigeria and the use of social media has received very little attention despite social media's promising potentials, particularly for small businesses. The authors hoped that this study will fill a gap in the authors' understanding of how social media affects the performance of small and medium-sized businesses (SMEs) in the construction industry.