Small And Medium-sized Enterprises Managers Research Articles

Refueling intellectual capital toward innovation performance of SMEs in Saudi Arabia: mediating the role of entrepreneurial opportunity recognition

PurposeThe objectives of this research were to inspect the relationship of intellectual capital (IC), along with its dimensions (human, structural and internal and external relational capital) with innovation performance (IP), to explore entrepreneurial opportunity recognition (EOR) as a mediator between the IC and IP of small and medium-sized enterprises (SMEs) in Saudi Arabia.Design/methodology/approachThis research used data collected via a well-structured questionnaire. The sample size was comprised of 457 participants who were owners and/or managers of SMEs in Saudi Arabia. Further, the findings were extracted from data using partial least squares (PLS) techniques.FindingsThe results indicated that all dimensions of IC, including human capital (HC), structural capital (SC), internal relational capital (IRC) and external relational capital (ERC), had a significant relation with both IP and EOR. It was also shown that EOR positively influenced IP. Furthermore, the results showed that EOR played an important role as a mediator between IC (HC, SC, IRC and ERC) and IP.Practical implicationsThe present research offered a beneficial and novel managerial and theoretical strategy for improving a given firm’s IP with the support of IC and EOR. This finding offered a vision to the management teams of SMEs for full utilization of IC and IP. The present study also provided policymakers, administration and future studies with a path to improving the production and services of SMEs to secure market advantages.Originality/valueAccording to the author’s best knowledge, the present research represented the first attempt to expose the mediating role of the EOR relationship between IC and IP. Furthermore, the present study also developed the relationship between dynamic capabilities (DC) theory, intellectual capital-based view (ICV) theory and resource-based view (RBV) theory, with variables that reveal the theoretical foundation of the study. Finally, the results of this study were verified by the existing literature.

Comparable yet distinct: a systematic review of social and small and medium-sized enterprises growth trajectories

Purpose This study aims to expand the concept of business growth by incorporating sustainability demands, particularly in the context of the Anthropocene era. It explores the growth trajectories of social enterprises (SEs) and small and medium-sized enterprises (SMEs), examining how SEs integrate social and environmental objectives into their growth process. Through a systematic literature review (SLR), this study compares these approaches with traditional SME growth paradigms, highlighting the need for a holistic understanding of business growth that addresses contemporary socioenvironmental challenges. Design/methodology/approach A qualitative SLR was conducted, using a structured search algorithm to identify and evaluate research on growth and scaling in SMEs and SEs. The search of the Web of Science database with specific growth-related keywords yielded 5,362 articles, which were narrowed to 194 after filtering by journal relevance. Content analysis, guided by an inductively developed codebook, examined growth definitions, operationalizations, and methodologies. This paper focused on key growth dimensions (economic, social and environmental) and identified whether growth was addressed as an outcome or process, along with its enablers and barriers. Findings While there are areas of intersection between the literatures, the findings reveal that traditional SME growth frameworks do not entirely align with SEs growth conception and management. Furthermore, SE’s growth barriers and facilitators, as well as growth trajectories more broadly, emerge as distinct from those of traditional SMEs. The results distill insights from SE growth paths that can be valuable for traditional SME managers, particularly in terms of managing stakeholders and the institutional environment. Social entrepreneurs commonly use strategies for reshaping business norms, influencing consumer culture and raising social issues awareness, leveraging the values of stakeholders to secure essential support. Originality/value As SMEs confront escalating pressure to align with the sustainable development agenda, the findings underscore the critical significance of drawing insights from the burgeoning SE growth literature. This suggests that traditional SME growth literature stands to gain invaluable insights from recent SE research, fostering a more nuanced comprehension of sustainability-centric SME growth trajectories.

Investigating the Impact of CSR Practices on Financial Performance: A Multiple Mediation Analysis in the Moroccan Exporting SMEs

Numerous pieces of research have shown that corporate social responsibility (CSR) orientation is key to driving long-term survival, growth and sustainable performance in a complex and dynamic environment. However, studies of the relationship between CSR and financial performance (FP) have yielded disparate results. Therefore, the current study aims to examine the effect of CSR on FP by using customer satisfaction (CS), reputation (REP) and competitive advantage (CA) as mediating variables. The data for this study was collected via a survey of 207 Moroccan exporting small and medium-sized enterprises (SMEs) and analyzed using SPSS 25 and Structural-equation Modeling with the aid of AMOS 23. Outcomes revealed that CSR has no significant direct effect on FP, but rather an indirect effect through REP and CS. Likewise, the link between CSR and FP is mediated on the one hand by CS and CA, successively and on the other hand by REP and CA, successively. These findings provide a verified theoretical framework for SME managers to plan and execute CSR to enhance FP by indirectly targeting the aforementioned intangible assets. The paper contributes to the knowledge of how CSR practices lead to FP in an under-explored context of SMEs in a developing country.

Development of a fuzzy analytic hierarchy process model, sensitivity analysis, and addressing barriers to additive manufacturing implementation in small- and medium-sized enterprises (SMEs)

Additive manufacturing (AM) is gaining popularity worldwide due to its potential to revolutionize manufacturing processes, improve product customization, and reduce waste. Nevertheless, small- and medium-sized enterprises (SMEs) encounter major challenges when implementing AM technologies. The objective of this research is to utilize the fuzzy analytic hierarchy process (FAHP) to identify and prioritize the critical challenges that impede the implementation of AM for SMEs. The study employs a two-stage methodology. First, a thorough literature review and expert discussions identify 15 major barriers to AM adoption. Second, a systematic model is proposed to establish a ranking of these barriers, which is based on the FAHP. The results are validated using sensitivity analysis to ensure the robustness of the findings. Additionally, potential solutions to overcome these barriers are discussed. The research indicates that the two most significant barriers for SMEs are the high costs of equipment and the scarcity of skilled designers. The model that has been presented is a valuable resource for SME managers and practitioners, as it allows them to make strategic and informed decisions that facilitate the efficient implementation of AM. This research is groundbreaking in its comprehensive analysis of the prioritization and ranking of AM implementation barriers, with a particular emphasis on SMEs. It offers essential insights for future research and practical applications.

Adoption of Advanced Manufacturing Technology by SMEs in Kenya: Effect on Performance and Policy Implications

This study examined the adoption of advanced manufacturing technology (AMT) by small and medium-sized enterprises (SMEs) in Kenya and its effect on their performance. The study utilized a mixed-methods approach, combining qualitative and quantitative data collected through Interviews and structured questionnaire respectively. The target population constituted SME owners and Managers across various manufacturing sectors in Kenya. The study employed a stepwise regression model to analyze the results. Findings indicate a positive correlation between AMT adoption and operational performance, including increased production efficiency, product quality, and market competitiveness. The study also shows a significantly positive relationship between use of AMT by SMEs in Kenya and their ability to develop and sustain competitive advantage in their operations by employing both planning and design technologies. Specifically, the study found a significant and positive relationship between design technologies and performance of SMEs in Kenya (p<0.001), and between planning technologies and performance of SMEs in Kenya (p<0.001). Further, the study found that manufacturing technologies do not have a signigificant positive effect on performance of SMEs in Kenya when considered together with planning technologies and design technologies (p=0.698).The paper recommends that SMEs should adopt design technologies and planning technologies that are aligned to their manufacturing process. The study also recommends that appropriate policies that encourage adoption of AMT should be developed to enhance performance of SMEs given their pivotal role in national economic development.

Linking the trickle-down effect of supervisor incivility to turnover intentions in the context of SMEs: a serial mediation model

PurposeBased on conservation of resources theory and incivility spiral theory, this study examines the relationship between supervisor incivility and turnover intentions by investigating the mediating roles of co-worker incivility and emotional exhaustion.Design/methodology/approachA serial mediation model was empirically tested with a sample of 600 employees in Greek small and medium-sized enterprises (SMEs).FindingsResults indicate that supervisor incivility is linked to turnover intentions in three main ways. Directly, indirectly through emotional exhaustion, and indirectly through the serial mediation of co-worker incivility and emotional exhaustion.Research limitations/implicationsPossible limitations of the study include the sampling techniques and the self-reporting measures for data collection.Practical implicationsFindings attest that owners and managers of SMEs should take note of the trickle-down effect, namely that their own misbehavior will fuel co-worker incivility. Supervisor incivility has cumulative, deleterious consequences on employees, depleting their emotional resources and enhancing turnover intentions, and should therefore be restricted through appropriate practices.Originality/valueFew empirical studies have explored the effects of supervisor incivility on the incivility manifested by others and their impact on turnover intentions. The study enriches the trickle-down effect literature by identifying an additional indirect path linking supervisor incivility and turnover intentions. Further, this study took place in SMEs, a context with limited research in abusive supervision and incivility yet highly pertinent, given that SMEs informality might leave such behavior unchecked.

Revealing the Secrets of Metaverse Technology Adoption for Sustainable Performance via Dual-Stage SEM-ANN Analysis

The growing ubiquity of the metaverse among small and medium-sized enterprises (SMEs) offers a game-changing chance for creative business plans and improved communication. This adoption reduces the consumption of physical resources and promotes an environmentally responsible business model in besides increasing operational efficiency. In accordance with the Sustainable Development Goals (SDGs) of the UNDP, our study attempts to clarify how the metaverse might improve the sustainable performance of SMEs. We developed a comprehensive study model based on the diffusion of innovation (DOI) and technical organizational and environmental (TOE) paradigms. For data analysis a hybrid approach merging partial least squares-structural equation modeling (PLS-SEM) and artificial neural network (ANN) was implemented. The study highlights the crucial roles of relative advantage, value alignment, compatibility, and top management after analyzing data from 369 respondents across Chinese SMEs that was collected both physically and online. The understanding of decision-makers becomes evident as a crucial element impacting the adoption of metaverse and ensuing sustainable (social, economic, and environmental) outcomes. This study offers valuable insights on metaverse adoption and sustainable performance for Chinese SMEs. Additionally, it offers appropriate suggestions for managers of SMEs, policy makers, and metaverse developers.

TOOLS FOR EFFECTIVE CAREER DEVELOPMENT MANAGEMENT

In today’s environment, managing employees’ career development is becoming a key factor for the success and sustainable development of organizations, especially small and medium-sized enterprises (SMEs). The purpose of this article is to investigate current approaches to career management in SMEs and provide practical recommendations based on theoretical research and empirical evidence. The novelty of the study lies in the integrated approach to analyzing career management practices using both quantitative and qualitative methods. This allows for a deeper understanding of the impact of career development on employee motivation and retention in a resource-constrained and highly competitive environment. The research methodology includes reviewing existing literature and analyzing case studies from different industries to identify best practices and success stories. The use of mixed research methods, such as surveys and in-depth interviews, provides a more comprehensive view of current practices and their impact on employees. The results of the study show that career development management is critical to improve employee motivation and retention, which is particularly relevant for SMEs. Pay attention to aspects such as training and development, performance appraisal systems, reward systems and their impact on employee motivation. Training and development help to improve employees’ skills and adaptability to changes in the market, while appraisal systems such as 360-degree feedback and regular evaluations help to identify achievements and areas for improvement, forming individual development plans. A fair and competitive compensation system motivates employees and promotes employee retention. The author’s personal contribution is the design and implementation of an integrated research methodology that combines quantitative and qualitative methods, which provided comprehensive data and offered practical recommendations for SMEs. The article also discusses the factors that influence employee retention and the creation of a positive corporate culture, which contributes to their long-term professional growth and enhances companies’ competitiveness in the market. In an environment of rapid change and globalization, SMEs must pay special attention to human capital development to maintain competitiveness and achieve sustainable growth. The article provides recommendations for the implementation of effective career management programs and examples of successful practices from different sectors.

Drive sustainable business performance with humane entrepreneurship, knowledge management: the mediation of sustainable business advantage and sustainable business model innovation

PurposeThis study evaluates the important role of humane entrepreneurship (HE) on sustainable business advantage (SBA) and sustainable business performance (SBP) by exploring the mediating role of sustainable business model innovation (SBMI) under the influence of knowledge management (KM) in small and medium-sized enterprises (SMEs). Encouraging businesses to implement a combination of KM and HE facilitates the implementation of SBMI that brings value to businesses, communities and the environment in emerging economies.Design/methodology/approachThis study uses an empirical quantitative research method using primary information based on data collected by questionnaires. The study sample resulted in 424 valid responses (66.77% response rate). The target audience of the study is middle and senior managers in SMEs. This study aims to perform structural modeling analysis with the maximum likelihood estimates method to examine structural relationships.FindingsThis study found a positive relationship between KM and HE to SBMI. At the same time, SBMI plays an important role for businesses to achieve SBA and SBP. Similarly, a positive relationship was also found between HE to SBA and SBP. And SBA strongly promotes SMEs to achieve SBP. In addition, the mediating role of SBMI and SBA is clarified to have a positive impact between HE–SBP and SBMI–SBP. HE plays an important role in motivating businesses to innovate sustainable business models, making it easier to gain sustainable competitive advantages, thereby bringing sustainable business results.Practical implicationsThis research helps SMEs realize the importance of KM and HE in SBMI. At that time, SMEs take advantage of internal and external information sources and innovate their business models based on HE mechanisms. Applying HE mechanisms will allow businesses to innovate their business models by combining concerns between stakeholders and the social environment for sustainable development. Therefore, businesses will achieve their SBA toward SBP.Originality/valueThe present literature shows that there are few empirical studies on the mechanism mediating SBMI in the relationship between HE and SBP; and SBA in the link between SBMI and SBP. In addition, the impact of KM and HE on SBMI is also very important in the current context. The study's findings could have huge implications for entrepreneurs and senior managers in SMEs in emerging economies. Help them realize the importance of KM and HE for SBMI, thereby building strategic perspectives that help businesses achieve sustainable competitive advantages and increase SBP for businesses.

The Relationship between Sustainable Development and Organizational Performance of SMEs in Guangdong Province, China

This study investigates the impact of sustainable development on the organizational performance of small and medium-sized enterprises (SMEs) in Guangdong Province, China, focusing on three dimensions: economic, social, and environmental sustainability. A quantitative research approach was adopted, utilizing Structural Equation Modeling (SEM) with data collected from 371 SMEs in Guangdong Province. The analysis was conducted using SmartPLS 4.0 to test the proposed hypotheses. The results indicate that all three dimensions of sustainable development positively influence organizational performance. Economic sustainability enhances financial performance and competitiveness, social sustainability improves employee engagement and stakeholder relationships, and environmental sustainability reduces operational costs and enhances market reputation. The cross-sectional nature of the study limits the ability to infer causality. Future research should consider longitudinal studies and explore the impact of sustainable development across different regions and industries. SME managers should integrate sustainable practices into their business strategies to improve organizational performance. Policymakers are encouraged to create supportive environments and incentives for SMEs to adopt sustainability practices. This study contributes to the literature by providing empirical evidence on the positive impact of sustainable development on SME performance in the context of a rapidly developing region. It also extends the application of Dynamic Capability Theory to sustainability practices within SMEs.

Strategic Initiatives for Humanized Management for Smes to Support Sustainable Development Goals (SDGS)

Objective: The study aims to (1) explore the problems of humanized management, (2) identify the factors associated with humanized management, and (3) propose strategic initiatives for humanized management for small and medium-sized enterprises (SMEs) in Bishan, Chongqing. Theoretical Framework: The research draws on Theory Y, Theory Z, and Leader-Member Exchange Theory (LMX). Method: Both qualitative and quantitative approaches were used. First, the problems of humanized management were gathered through qualitative interviews with 8 CEOs and analyzed using thematic analysis. Second, the descriptive analysis and Confirmatory Factor Analysis (CFA) were used to analyze the 5-point Likert scale questionnaires gathered from 388 SME employees. Third, three experts were consulted for strategic initiatives for humanized management. Results and Discussion: The problems in humanized management included Team Cohesion, Welfare, and Fairness. CFA results indicated that 9 variables significantly influenced humanized management, including Recognize an Employee's Potential, Self-Control, Team Cohesion, Employee Participation, Mutual Respect, Responsibility, Working Relationship, Leader Expectation, and Team Support, with the first 3 being most important. The strategic initiatives suggested by 3 experts were provided to enhance humanized management. Research Implications: The emphasis on recognizing an employee’s potential, promoting self-control, fostering team cohesion, addressing welfare, and ensuring fairness collectively supports SDG 8: Decent Work and Economic Growth. Originality/Value: Besides 9 significant variables from Theory Y, Theory Z, and LMX, two additional variables, Welfare and Fairness, significantly impacted humanized management in SMEs in Bishan, Chongqing. The strategic initiatives for humanized management for SMEs to support SDGs were given.

Is formalisation Enough to Achieve Growth in SMEs?

The objective of this research is to determine whether the formalisation (FORM) of small and medium-sized enterprises (SMEs) has an impact on the growth, and determine which aspects of SMEs management, when formalised, are associated with and contribute to the growth of these organisations. A survey was applied to 403 proxies of SMEs in Lima, Peru. A structural equation model was used to validate the hypotheses. The results indicate that there is a positive and significant association between the FORM of SMEs management and the growth of these organisations. The main finding of this research is to determine that the formalisation of SME management in Lima, Peru explains their growth by only 27%, leaving 63% explained by other factors that could be not only management aspects, but also aspects of the SME environment. State institutions, companies and academia should analyse the low economic contribution of SMEs from a broader approach and not only from the position that formalisation is the only reason for growth. Other aspects should be studied, such as education in management issues by entrepreneurs, development of collaborators' competencies, improvement in the efficiency in the management of State institutions, among other factors; and thus, find the appropriate mechanisms that contribute to the growth of SMEs. This research is the first to analyse, in a single study, whether the formalisation aspects of SMEs management contribute to their growth. Finally, this research has contributed to the construction and conceptualisation of the SME growth variable.

Determinants of SMEs' strategic entrepreneurial innovative digitalization: examining the mediation role of human capital

PurposeThis study was inspired by research of strategists on strategic innovation (SI), aiming to provide a unique model to enhance the digitization of small and medium-sized enterprises (SMEs) in Bangladesh to fill the gap toward a digital economy.Design/methodology/approachA survey was used to collect data from 180 SMEs in the manufacturing industry for this research. The results indicate that strategic innovativeness (SI), human capital (HC), infrastructure and technology and resistance to change significantly influence the digitalization in Bangladesh SMEs.FindingsThe link between SI and SMEs' digitalization in Bangladesh is mediated by HC. The results show that HC plays a big role in the connection between SI and the digitalization of SMEs. This study may be valuable for SMEs managers, researchers and policymakers in Bangladesh and other developing nations, who want to learn more about SI in adopting digitalization.Originality/valueThe specialized knowledge and abilities of strategists allow them to establish parallels between the past and present, enabling them to make a sustained forecast about the digital economy. This study encourages small and medium-sized businesses to develop their SI and advance their HC, which could further deject resistance to change toward enhancing and adopting digitalization in SMEs sectors.

INNOVATIVE STRATEGIES IN RISK MANAGEMENT AND CRISIS RESPONSE IN BUSINESS

The growth and sustainable development of companies depend on their ability to adequately and effectively identify and utilize innovative strategies. The aim of the study is to determine the results of the innovative strategy of international small and medium-sized enterprises (SMEs) in times of economic crisis. The research involved 360 owners and managers of international SMEs in the European Union. The study used tabular and graphical methods, surveys, questionnaires, and correlation and regression analysis. It was found that 82.7% of SMEs improved their production processes, while 62.8% implemented innovations by acquiring new products or equipment. It was established that 82% of enterprises implemented innovative strategies in the commercial or trade sector, 73.2% in the service sector, and 77.7% in other sectors. The models developed in the study contribute to the modern development of the economy since they analyze the relationship between innovative strategies and determinants affecting their successful implementation and implementation. Prospects for further research include analyzing the types of innovative strategies that prevail in the activities of international SMEs, as well as their size and sectors of activity.

Nice to value. Unraveling the nexus between management accounting use and financial performance: A quantitative study of SMEs

ABSTRACT This study investigates the intricate relationship between management accounting (MA) practices and financial performance (FP) in small and medium-sized enterprises (SMEs) in Italy and Germany, offering practical insights for practitioners and policy makers. Despite the theoretical benefits of MA practices like cost accounting, budgeting, and key performance indicators, their implementation in SMEs remains limited. Prior research suggests that SMEs often rely on informal control systems due to resource constraints and a lack of familiarity with MA tools. The COVID-19 pandemic and recent European conflicts have stressed the need for robust MA practices to navigate economic volatility and enhance resilience. Using a quantitative approach, data were collected via questionnaires from 238 SMEs in Italy and Germany, targeting chief financial officers, board members, and majority shareholders. The analysis, employing partial least squares structural equation modeling, reveals a significant positive impact of MA practices on FP. Factors such as resource availability, training, and the culture of control play crucial roles in this relationship. These findings underscore the strategic importance of MA in driving organizational performance and highlight the need for SMEs to adopt these practices more comprehensively. This study offers valuable guidance for SME managers in enhancing operational efficiency and strategic decision making. Moreover, it provides policy makers with evidence-based recommendations to support SME growth and resilience through targeted training programs and resource allocation, ensuring a robust framework for economic stability and development.

The Adoption of Digital Technologies by Small and Medium-Sized Enterprises for Sustainability and Value Creation in Pakistan: The Application of a Two-Staged Hybrid SEM-ANN Approach

Digital technologies have revolutionized the business field, offering significant opportunities for small and medium-sized enterprises (SMEs) to enhance sustainability and value creation. This study investigates the impact of digital technology adoption on economic and social value creation, as well as SME performance. Specifically, it examines how social media applications, big data analytics, IoT applications, blockchain applications, and AI-enabled applications influence economic and social value within SMEs. We employed a hybrid approach integrating Structural Equation Modeling (SEM) and Artificial Neural Network (ANN) techniques using SmartPLs 4.0 Application; this research analyzes these relationships. For our analysis, data were collected from 305 SME managers operating in Upper Sindh, Pakistan, specifically from major cities like Sukkur, Larkana, Shikarpur, Jacobabad, and Khairpur. The findings reveal that social media applications, big data analytics, IoT applications, and blockchain applications significantly contribute to both economic and social value creation for SMEs. Conversely, AI-enabled applications show no significant impact on value creation. Importantly, economic and social value creation positively correlates with enhanced SME performance. This study enriches our understanding of how digital technologies influence SMEs in Pakistan, particularly in enhancing economic and social value creation. Through advanced methodologies and rigorous analysis, it bridges theory with practical applications in SMEs’ digital transformation.

The Influence of Corporate Social Responsibility and Customer Retention on Customer Relationship Management Performance with the Mediating Effect of Customer Trust in SMEs of Ningxia Province, China

In recent years, e-commerce has experienced rapid expansion and developed as the mainstream business practice in small and medium-sized enterprises (SMEs) in developing areas of China. There are a variety of channels for consumers to purchase from. Therefore, maintaining customers is increasingly important. In the meantime, companies expect to gain more significant insights into their consumers’ demands to earn customer trust, thus achieving customer relationship management (CRM) performance. This study develops based on trust theory and consists of four latent variables: corporate social responsibility (CSR), customer retention, customer trust, and customer relationship management performance. The current study used probability and random sampling techniques. It conducted the questionnaire survey to collect data form managers of SMEs in Ningxia province of China. The Partial least square structural equation modeling (PLS-SEM) technique was used for this study. As a result, a total of 150 respondents were usable for these questionnaires. The study revealed that corporate social responsibility and customer retention have a positive effect on customer relationship management performance. Moreover, customer trust has been examined that it had a positive effect on customer relationship management performance. In addition, customer trust was discovered as a partial mediation between the relationship of corporate social responsibility, customer retention, and customer relationship management performance. Furthermore, based on the samples analyzed, the proposed model seems to be fitted considerably well. Therefore, this study intends to contribute to a better understanding of factors influencing customer relationship management performance in Chinese SMEs, thereby providing companies with practical ideas to improve overall performance.

Hybrid strategy and its effect on the market performance of family-business SMEs: the mediating role of innovation

Purpose For this paper, the authors focus on Porter’s competitive advantage. Hybrid strategy refers to how a firm creates value vis-à-vis competitors by simultaneously relying on lower costs and greater differentiation to achieve a competitive advantage. This strategy emphasises both and aims to provide much more monetary value to customers through the combination of reduced cost and a higher rate of differentiation. In addition, this research focuses on family small and medium-sized enterprises (SMEs), because they have particularities arising from the incorporation of family members both as owners of the SME and in managerial positions. The porpose of this study is to analyse whether the existing differences produced by the role of the family in strategic decision-making and the concentration of family power have a higher impact on performance and innovation than non-family SMEs. Design/methodology/approach Structural equation modelling was used to analyse Spanish firms with fewer than 250 employees. This study randomly selected SMEs operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling. Findings SMEs are facing new challenges, and this has led to the emergence of new competitive strategies. Companies have started to combine differentiation strategies with cost strategies to achieve superior performance and better adapt to these changes. This study confirms a positive relationship between the adoption of hybrid strategies and market performance in SMEs. In addition, hybrid strategy reinforces innovation, which has a mediating role between hybrid strategy and market performance. Finally, the findings indicate that family SMEs achieve a greater impact of hybrid strategy on innovation than non-family SMEs. Moreover, innovation plays a mediating role only in the case of family firms, which enhances the relationship between hybrid strategy and market performance. Originality/value For SMEs to survive in turbulent environments, this study proposes the adoption of hybrid strategies instead of pure strategies. The novel model links hybrid strategy (as opposed to “stuck in the middle”), innovation and market performance. The research is valuable for owners and managers of family SMEs because this study finds differences in the relationships studied compared to non-family SMEs.

Examining the interaction effect of digitalization and highly educated employees on ambidextrous innovation in Chinese publicly listed SMEs: A knowledge-based view

With the advancement of technology, digitalization has attracted increasing attention in recent years. Previous studies have linked firm digitalization to innovation performance; however, less attention has been given to ambidextrous innovation and small and medium-sized enterprises (SMEs), which play a vital role in economic development. Based on a knowledge-based view (KBV), this research investigates the relationship between digitalization and ambidextrous innovation in Chinese publicly listed SMEs. We found that digitalization promotes radical innovation more significantly than incremental innovation of listed SMEs. We further observed that firm digitalization and highly educated employees with a master's degree or above have a complementary effect on radical innovation, and the financial background of firms' top management team (TMT) members strengthens strengthens this complementary effect. This study not only enriches the digitalization–innovation performance relationship literature, but also contributes to the KBV by tying together three vital elements (technology, people, and relational networks) in the KBV and examining their relationships with ambidextrous innovation. It also has implications for managers of SMEs related to increasing the innovation returns from digitalization endeavors.

The Mediating Role of Hard Quality Management in the Relationship Between Soft Quality Management and Innovation Performance

Purpose - Hard and soft quality management are known as two important dimensions of total quality management (TQM) that can improve the performance of manufacturing and service organizations. The paper aims to examine the effect of soft quality management (soft QM) on innovation performance (IP) with the mediating role of hard quality management (hard QM). Design/Methodology - A questionnaire was designed for the model test and distributed among 130 small and medium-sized enterprises (SMEs) in Golpayegan industrial town located in Iran. PLS-SEM was used to analyze the data.Findings - The results showed that soft QM affects hard QM and IP. Also, the impact of hard QM on IP was confirmed. The mediating role of hard QM in the relationship between soft QM and IP was also confirmed.Practical Implications - The findings of this research encourage managers of SMEs to focus attention on hard and soft QM simultaneously to improve innovation performance in companies.