Market entry agility in the process of enhancing firm performance: A dynamic capability perspective

Nilna Muna,I Made Artha Wibawa,Anak Agung Ayu Sriathi,I Nyoman Rasmen Adi,Ni Nyoman Kerti Yasa,Ni Wayan Ekawati

doi:10.5267/j.ijdns.2021.9.018

Abstract

Social media empowers small and medium enterprises (SMEs) in engaging with their stakeholders economically and effectively. Social media use affects SMEs operation and knowledge sharing which creates innovation opportunities, speeds time to market, satisfies firm's customers, and improves business performance. Current research aims to explore the impact of social media use on the market entry agility, product innovativeness, reducing the market entry time for the SME and improving the firm performance. Cross-sectional survey-based data was collected from the jewelry crafting SMEs in Bali, Indonesia. The data was analyzed with the covariance-based statistical analysis technique with the SPSS based AMOS 23. The study results identify that social media use and market entry agility significantly impact firm performance. However, product innovativeness insignificantly influences firm performance. Furthermore, the market entry agility mediates for the firm performance so, SMEs need to leverage social media use, and market entry agility enables the dynamic capacity to enhance firm performance. Firms’ level innovativeness capability should be considered as a mediating role but should support another variable to leverage firm performance. The study limitation and future research options are reported at the end.

Highlights

The power of social media adoption in leveraging performance is still attracting marketing and management academics
The study results identify that social media use and market entry agility significantly impact firm performance
Research has shown that social media adoption's influence on business performance varies; some studies show the beneficial impact of social media adoption on firm performance (Tajvidi & Karami, 2017; Yasa et al, 2021)

Summary

Introduction

The power of social media adoption in leveraging performance is still attracting marketing and management academics. Dynamic capability is one of the main pillars in marketing studies that view market entry agility and product innovativeness—borrowing from Teece (2007) SM tools as influencing factors on the dynamic capabilities of the focus company to create business value sensing, seizing and reconfiguring knowledge in the penetration to new market & innovation process. The more advanced the value processing and delivery capabilities, the greater the chance of encouraging customers and consumers to invest in creating advanced capabilities It should be seen as the dynamic term, when time-to-market and timeliness are important, innovation is increasing, future competition and markets are uncertain, specific strategic solutions are needed, and a product or service should be developed and provided to the targeted market with a benefit. The purpose of this study is to bridge social media adoption firm performance by inserting several dynamic capability-related concepts of market entry agility and product innovativeness. The conceptual framework tested the SME’s creative industry for handicraft & design service in the Jewelry industry in Bali – Indonesia

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Methods

Conclusion