Small And Medium-sized Enterprises Managers Research Articles

Business Models Construction at SMEs Level from the Point of View of Strategic Management

Discussion of new approaches and instruments for strategic management and organisation of small- and medium-sized enterprises (SMEs) is now routine among scholars and policymakers. Despite an expanding set of literature on business modeling, there is little acknowledgment of the SMEs performance in the context of strategic development. This paper aims to detect the business model factors that increase SMEs performance. Thus, we reveal how decision-makers perceive the strategic management process and manage strategic risks within it. To achieve this goal, the asymmetric configu-rational theorizing and methodology are applied. The research brings into perspective that SME owners and managers have to pay more attention to managerial ties for supporting business model innovation. Developing a dynamic view of business model innovation is also important for understanding of dynamics in the open innovation networks. This challenge therefore calls for further studies on how strategic management should feature in the development of SMEs.

The impact of corporate reputation and social media engagement on the sustainability of SMEs: Perceptions of top managers and the owners

Research background: Small and medium-sized enterprises (SMEs) play a fundamental role in countries’ economies. Currently, entrepreneurs are struggling not only with the uncertainty of the business environment, but also with high expectations for businesses to be run in a sustainable way. Therefore, the impact of corporate reputation and social media on sustainability is an area of interest for entrepreneurs. In this context, little research has been conducted on their perception of the linkage between these issues. Furthermore, there has been no direct explanation of the effects of SMEs’ reputation and social media usage on their sustainable development, especially in the V4 countries. Purpose of the article: This article defines, quantifies, and verifies the effects of corporate reputation and social media on sustainable development as perceived by SMEs’ owners and top managers in the V4 countries. Methods: Data were gathered in December 2022 and January 2023 using the computer-assisted web interviewing (CAWI) method. The survey was designed based on a literature review and experts’ opinions. Respondents (top managers of SMEs, n = 1090) were asked questions on their firms’ characteristics, reputation, social media usage and sustainable development. The linear regression modelling (LRM) was utilised to evaluate the hypothesis. Findings & value added: The study revealed a strong relationship between owners’ and top managers’ perceptions of the importance of both corporate reputation and sustainable development in SMEs. The belief that social media supports the growth of companies’ performance is related to the understanding of the concept of sustainable business development. Surprisingly, for the owners and top managers of SMEs in V4 countries, there was no relationship between the awareness of social media usage to share information with customers and partners and the understanding of sustainable business growth.

Deconstructed entrepreneurial orientation and export performance: mediating role of differentiation and cost leadership strategy from the developing country context

PurposeThe aim of this study is to examine the effects of innovativeness (INN), proactiveness, (PRC) and risk-taking (RIT) on the export performance of apparel small and medium-sized enterprises (SMEs) and the role of differentiation and low-cost leadership (LCL) strategies as mediating effects between entrepreneurial orientation (EO) dimensions and the performance of exporting firms. INN, RIT and PRC are considered EO dimensions.Design/methodology/approachA cross-sectional survey was carried out by providing a questionnaire to the owners, directors and senior managers of the apparel SMEs – the primary data of 550 treated by structural equation modeling (SEM) technique for final data analysis.FindingsThe study has revealed the positive dimensional effect of EO on export performance. For the mediation effects of differentiation and LCL, differentiation strategy (DS) positively mediates between INN, PRC and export performance. However, no mediation has been found between RIT and export performance. On the other hand, LCL has found positive effects between INN, RIT and export performance. However, the mediation effect was absent between PRC and export performance.Research limitations/implicationsLimitations/implications- This study has been conducted on only Muslim owners, senior export managers and directors of apparel SMEs in Bangladesh. It has examined the two main competitive strategies as a mediator between EO dimensions and export performance. The findings of this study are based on one country data analysis.Practical implicationsEO, differentiation and low-cost leadership (LCL) strategy are resources and capabilities of an organization to create a competitive advantage to enhance performance. The factors of this research are helpful for SME practitioners.Originality/valueThe direct and indirect effects (differentiation and LCL strategy) of EO dimensions on export performance in an emerging country, i.e. the South-Asia region, is a pioneer study. Therefore, current research has theoretical and managerial implications for the international business and strategic management literature.

Initiatives, Outcomes, and Facilitating Factors to Changing Workplace Environments in Small- and Medium-sized Enterprises due to the COVID-19 Pandemic: Interviews with Employers and Human Resource Managers

This study identified changes in the work environment due to the COVID-19 pandemic, subsequent initiatives and outcomes, and facilitating factors from the perspective of company officials in small- and medium-sized enterprises (SMEs). In 2021, semi-structured interviews were conducted with employers or human resource managers of SMEs with less than 300 employees regarding changes in the work environment due to the pandemic, initiatives, outcomes, and facilitating factors. Thereafter, codes were extracted from verbatim transcripts or interview notes and categorized based on similarities in content. Based on interviews with 16 companies, the following four major categories of changes in the work environment were identified: "conflict and anxiety about infection when employees were forced to attend work despite the rapid transmission of the infection," "unfamiliarity and loneliness with the new working style that was suddenly imposed on them," "loss of emotional ties with workmates and opportunities for mood changes," and "future anxiety, feelings of alienation, and mental illness." The following seven initiatives were implemented to address these issues: "a hands-on approach to infection prevention and physical healthcare," "urgent introduction of telework for business continuity," "development and promotion of online information sharing," "establishment of a place and opportunity to maintain emotional connections within the company," "economic and management measures to protect employees and ensure company continuity," "support for employees for health maintenance," and "measures to respond to employees' needs and ideas, and support the continuation of activities." Four major categories of outcomes were: "increased efficiency of information sharing and enhanced performance," "maintenance and promotion of emotional ties and a sense of solidarity," "increased independence and sense of health among employees," and "adaptation of employees to novel situations." The initiatives were facilitated by factors classified into the following three major categories: "workplace culture wherein employees shared opinions and helped each other," "management's attitude and philosophy of valuing employees," and "proactive attitude toward information acquisition and resource utilization." The rapid introduction of teleworking as a new working style in response to the need to balance infection control and business continuity resulted in increased loneliness and other associated stressors. Many SMEs stated that they could maintain a sense of solidarity in the workplace and improve employee autonomy through their efforts to incorporate employees' opinions and maintain human connections.

Human Resource Practices and Employee Retention: The case of Maldives Small and Medium-sized Enterprises (SMEs)

The main objectives of this study are to examine Human Resource (HR) practices (Compensation and rewards, Training and development) and the mediating role (affective-based) of trust in supervisors to retain employees in SMEs in the Maldives using the social exchange theory (SET). A sample of 275 respondents among the employees working in SMEs in the capital city of the Maldives was selected using a simple random sampling method. Data were analysed using SPSS and SmartPLS version 3.7. The findings of this study offer several critical theoretical and practical implications for SME owners and managers interested in enhancing employee retention.

Circular Economy in SMEs – The Role of Commitment to Sustainability and Digitalization

Small and medium-sized enterprises (SMEs) are a decisive part of the efforts against climate change. However, they are late in terms of sustainability and circular economy (CE). Little is known about the factors that facilitate the implementation of CE practices in SMEs. Due to CE leading to cost savings, new business models or reputation gains, companies can achieve a competitive advantage. To realize this competitive advantage the strategic orientation of a firm is pointed out. Various theoretical papers have shown how CE can be enabled and how it can be inhibited. However, empirical studies that support the existing literature are lacking. The goal of this paper is to investigate the influence of two mechanisms, namely commitment to sustainability (CtS) and digitalization as strategic orientations on CE implementation. Therefore, we conduct a study with a self-developed sample of 754 German SMEs. Using multiple linear regression analyses, the results show that digitalization and CtS positively influence CE implementation in SMEs. Interestingly, the complementary effect of pursuing a dual strategy toward digitalization and sustainability is not significant for CE implementation. Our study contributes to the CE literature by giving a nuanced understanding of various antecedents of CE implementation. This study provides several approaches for managers of SMEs to improve their CE practices. First, digitalization is indeed an effective tool for implementing CE practices. Therefore, practitioners should strengthen their digitalization efforts when considering increased CE implementation. Second, a general focus on sustainability increases the implementation of CE practices. Therefore, practitioners should raise awareness of sustainability throughout the organization. Third, the combined focus on CtS and digitalization needs to be carefully considered. To implement CE, digitalization should be embedded in the sustainability strategy. Due to the liability of smallness, SMEs should seek their resources for digitalization and sustainability commitment not only within but also outside the company boundaries.

Does CSR digitalization improve the sustainable competitive performance of SMEs? Evidence from an emerging economy

PurposeThis study aims to investigate the influence of the digitalization of corporate social responsibility (CSR) on the sustainable competitive performance (SCP) of small- and medium-sized enterprises (SMEs) in an emerging economy and to examine the moderating effect of digital organizational culture on this relationship.Design/methodology/approachData collection was conducted through a survey completed by 311 owners and top managers operating in service, trading and manufacturing sector SMEs positioned within the twin cities of Pakistan. A convenient purposively sampling technique and snowball method were used for data collection, and structural equation modeling was used for data analysis.FindingsThe results of this study suggest that CSR digitalization has a markedly positive influence on the SCP. Digital organizational culture appears to moderate these relationships.Practical implicationsThis study highlights the importance of considering CSR digitalization and fostering a digital organizational culture for SMEs to achieve SCP. The findings provide valuable insights for strategic decision-makers, including owners, CEOs and senior management of SMEs, to enhance their knowledge concerning how and why a digital organizational culture makes it easier to digitalize CSR activities, with the ultimate objective of ensuring SCP and SME growth. Overall, the findings of this study have practical implications for policymakers and managers in SMEs as they can promote the adoption of digital technologies in CSR initiatives and develop a digital organizational culture within the organization. This would contribute to enhancing the SCP of SMEs. Thus, this research is beneficial for business actors, policymakers and researchers seeking to enhance SMEs’ SCP.Social implicationsThis study provides valuable guidance to the senior management of SMEs regarding successfully adopting and integrating digital technologies into their CSR practices. This integration can lead to increased social and environmental benefits, which positively impact both business and society. Policymakers can use these findings to develop policies and initiatives to encourage CSR digitalization among SMEs. By providing support and incentives for digital transformation, policymakers can help SMEs adopt digital tools to improve their CSR performance, contributing to economic growth and sustainability.Originality/valueThis study pioneers research on the links between CSR digitalization, digital organizational culture and the SCP of SMEs. This study contributes to the literature by defining CSR digitalization as an antecedent to the SCP of SMEs. In addition, this study underlines the significance of CSR digitalization for the achievement of SMEs’ SCP of SMEs with the moderating role of digital organizational culture. Overall, this study enriches the resource base view literature through empirical evidence.

Analysis of the Problems and Countermeasures of Innovation Management of Small and Medium-sized Enterprises in China

Small and medium-sized enterprises (SMEs) can promote the development of the national economy and society. In the market, small and medium-sized enterprises can provide jobs, promote technological development and accelerate economic growth. With the development of big data and management information systems, small and medium-sized enterprises are facing severe tests. Innovation management is an implementable way to meet this test. Innovation management is an all-round innovation from the main technology, system and management idea of an enterprise. It not only integrates the external resources of the enterprise but also improves the vitality of the enterprise itself and the ability to deal with risks. Therefore, this paper analyzes the problems and countermeasures of innovation management in SMEs in China. By using the method of a literature review, this paper expounds the requirements, current situation, and solutions of the innovative management of Chinese small and medium-sized enterprises and finally draws the conclusion that SMEs should innovate organization and ideas, widen financing channels, and enhance the ability of independent innovation.

Business ties, adaptive capability and technological turbulence: implications for SMEs’ performance in Turkey

PurposeBased on the dynamic capability theory, the purpose of this study is to examine the mediating role of the adaptive capability of small- and medium-sized enterprises (SMEs) on the relationship between business ties and firm performance. This study also investigates the moderating role of technological turbulence in those relationships.Design/methodology/approachData were collected from 1,265 SME managers in Turkey. Partial least squares analysis, a variance-based structural equation modelling, was applied to examine a mediated moderation model.FindingsThe results support the proposed framework illustrating that business ties are positively related to adaptive capability and firm performance. Moreover, adaptive capability mediates the relationship between business ties and firm performance. The results also indicate that the indirect effect of business ties on firm performance through adaptive capability was moderated by technological turbulence.Practical implicationsSMEs in emerging economies need to enhance their business ties and invest in their adaptive capabilities to increase their performances. This relation becomes more strategic under technologically turbulent environments.Originality/valueBy introducing empirical data from the Turkish emerging context, this paper contributes to our understanding of how SMEs’ relational networks contribute to firm performance. From the dynamic capability perspective, it shows how SMEs use their adaptive capabilities to environmental challenges. It also fills an important gap by showing that environmental uncertainties (specifically technological turbulence) moderate the adaptive capability’s mediating impact on the relationship between business ties and firm performance. The results also provide potential future directions for dynamic capabilities research in emerging contexts.

Roles of board of directors and earnings management across SMEs life cycle: evidence from the UK

PurposeThis study aims to examine the role of the board of directors in affecting earnings management practices across small- and medium-sized enterprises (SMEs) life cycle.Design/methodology/approachData is collected from 280 SMEs listed on the London Stock Exchange during the period of 2009–2016. Fixed effects regression analysis is used to test the hypotheses.FindingsThis study shows that the impact of the board of directors' roles on earnings management practices varies depending on the SMEs life cycle stage. In the introduction, growth and decline stages of SMEs, the wealth creation role of the board is negatively significant with earnings management, while the wealth protection role of the board is positively significant in the growth and maturity phases. Results suggest that the board's responsibility to create wealth deters early-stage earnings management strategies, while protecting shareholder interests, in latter stages, leads to a decrease in earnings management.Practical implicationsThe findings suggest that corporate governance should be customized to the specific stage of the SMEs life cycle. Additionally, different life cycle stages may impose different requirements on corporate boards to shape the effectiveness of these mechanisms and constrain earnings management practices.Originality/valueTo the best of the authors’ knowledge, this study offers one of the first insights on the UK SMEs to understand how board functions and earnings management practices vary over SMEs life cycles. It will offer important information on the effect of board features on earnings management in SMEs in the UK and is anticipated to be of importance to policymakers, regulators, investors and practitioners.

Improving Cybersecurity Awareness and Basics in Vocational Education and Training

Vocational Education and Training (VET) are oriented to achieving skills and teaching of knowledge related to a specific occupation or vocation in which learner will participate. It is done at an educational institution, as part of secondary or tertiary education, or within initial training during employment, (as a combination of formal education and workplace learning). Digital transformation has introduced new business opportunities for companies, but at the same time also new risks. Cybersecurity is a big concern for companies, especially for small and medium-sized enterprises (SMEs) that are much more vulnerable, first of all from their organization, not having an internal IT department that also deals with security, on the other hand part of the lack of necessary skills, their staff and management not being used to face cyber risks and giving us attention to this sector. It is essential that SME management understands the need to put in place appropriate IT security policies and provide adequate staff training. It is known that technology as well as cyberattacks evolve rapidly more than people and organizations were aware of. Therefore also, within VET it is necessary that educators/trainers and students are equipped with cybersecurity awareness and have some cybersecurity basic knowledge about reasons why cyberattacks happen and tools to act against them. Results show that the education sector is leading when it comes to suffering cyberattacks (July 2022 to August 2022). It means that the education sector of a country needs more protection and knowledge in this context. This article is based on the experience of the authors within the Erasmus+ project “InCyT - Interdisciplinary Cyber Training.”

The China Belt and Road Initiative: The Struggles and Opportunities for the SMEs Development of an Emerging Economy

Following the economic crisis in 2008, several Algerian small and medium-sized enterprises (SMEs) in key economic sectors were negatively affected. More than 30,000 companies closed in a single year and more than 70,000 jobs were lost as a result of the financial crisis. These negative effects led to several bankruptcies and a deterioration in business management. The government’s efforts to address the crisis include an important measure to promote SME development under the China–Algeria Belt and Road Initiative (BRI). However, there are divided concerns with regard to the impact of the BRI, which seems to reflect on both prospects and challenges for SME development. Therefore, this study aims to explore the struggles and opportunities of BRI projects in the development of local SMEs in Algeria. In this study, a combination of face-to-face interviews and focus group discussions are conducted with 20 participants. The target group includes general managers, CEOs, entrepreneurs and managers of SMEs. All interviews were recorded face-to-face, later transcribed, translated and thematically analysed. The results show that the BRI has positive impacts on SME development, which reflect on economic opportunities, namely, trade partnerships, market efficiency and productivity, and improve employment opportunities. However, the dominance of Chinese enterprises and the lack of appropriate enterprise policies are among the challenges that hinder the rapid development of SMEs. Therefore, policy reform is needed to ensure the enforcement of foreign enterprise policies that limit the dominance of foreign enterprises and instead encourage the expansion of local enterprises to promote socio-economic growth.

Enhancing supply chain resilience in SMEs: a deep Learning-based approach to managing Covid-19 disruption risks

PurposeThis research examines the relationships between the components of supply chain integration (SCI) (i.e. internal integration (INI), customer integration (CI) and supplier integration (SI)), supply chain risk management (SCRM) and supply chain resilience (SCRE), with disruption impact (DI) as the moderator, among small and medium-sized enterprises (SMEs).Design/methodology/approach271 useable data were collected from Chinese SMEs to test the research model with two statistical approaches of PLS-SEM and ANN analysis.FindingsResults show that SCI (i.e. INI, CI and SI) positively affects SCRM, and subsequently affects SCRE. Moreover, SCRM has also been found to fully mediate the relationship between INI, CI and SI with SCRE. Additionally, DI was also found to moderate the relationship between SCRM and SCRE.Research limitations/implicationsThis study expands the supply chain management-related knowledge by empirically validating the mediating role of SCRM between the elements of SCI and SCRE, as well as empirically identifying DI as the moderator between SCRM and SCRE.Practical implicationsThe findings offer valuable understanding that can guide SME managers, owners and stakeholders in developing strategies for integrating with customers, suppliers and internal departments, as well as implementing SCRM practices to enhance SCRE performance.Originality/valueThe research expands the existing literature on the elements of SCI and SCRM in maintaining SCRE from an Asian developing country's perspective.

Management of Operational Risk in the Context of Financial Performance of SMEs

Owners and managers of small and medium-sized enterprises (SMEs) have changed their perspective on risk management due to the current global negative threats in the business environment. If they want to be successful and ensure the financial performance of their business, they must adopt a proactive approach to reducing strategic risks in connection with operational risks. The aim of the article is to identify and quantify the differences in operational risk management and its effect on the financial management of SMEs between four Central European countries. The statistical sample of SMEs consisted of 1090 owners and top managers. Data collection was carried out through a questionnaire in the period December 2022–January 2023. Statistical hypotheses were evaluated with the application of correlation analysis and linear regression modelling. Empirical findings have confirmed that operational risk management has a significant positive impact on improving the profitability of the enterprise and on reducing the enterprise’s indebtedness, as well as in the context of reducing the enterprise’s inability to pay its obligations. However, there are disparities in the perception of this influence between owners/managers with regard to the country in which they carry out their business activities. The findings are important for both national and multinational organizations and entities dealing with risk management in the business environment of small and medium-sized enterprises.

Influence of Economic Policy Uncertainty on Tourism SME Performance: The Spanish Case

ABSTRACT This paper studies the influence of Economic Policy Uncertainty (EPU) on the performance of small and medium-sized enterprises (SMEs) involved in the Spanish Tourism Sector and analyzes the role that company characteristics can play in this relationship. To achieve this objective, a sample of 5,529 Spanish tourism SMEs has been taken from 2012 to 2020. Applying panel data analysis, it is found that increases in EPU are associated with lower business performance in these companies. Results suggest that SMEs should increase their size, be more flexible and achieve an appropriate balance between indebtedness and liquidity to be more resilient to EPU. The findings present relevant implications for the managers of Spanish tourism SMEs and for economic policymakers.

Platform network ties and enterprise innovation performance: The role of network bricolage and platform empowerment

Small and medium-sized enterprises (SMEs) that participate in network platforms can effectively overcome resource bottlenecks and reduce the impact of the coronavirus pandemic of 2019. However, the reasons for this phenomenon remain unclear. To further investigate this issue, we selected 310 Chinese SMEs to examine the relationship between platform network ties, network bricolage, platform empowerment, and enterprise innovation, including both radical and incremental innovation. The empirical results demonstrate that platform network ties can enhance enterprises’ innovation performance. Furthermore, the empirical verification of this study's assumptions provides evidence that network bricolage mediates the relationship between network ties and enterprises’ innovation performance, while platform empowerment plays a moderating role. The study results could potentially contribute to the more effective management of platform networking ties, empowerment, and bricolage, thus benefiting the management of SMEs.

Understanding Managerial Action in Business Model Transformation of Small and Medium-Sized Enterprises

Small and Medium-Sized Enterprises (SMEs) typically adapt their business model opportunistically with new value propositions, adding partnerships or improving their cost structure. Business model transformation has been proven to drive SMEs innovation and success, however, the role of SME managers in facilitating such transformation remains unclear. While peer-to-peer sharing has received much attention in public debates and academic research, sharing among firms is largely neglected in both. Looking at current opportunities for SMEs in business-to-business (B2B) sharing, this research aims to identify recurring patterns of manager’s activities along a business model transformation for which a cross-case analysis with Swiss SMEs was used along several cycles of action research with semi-structured, deductively coded interviews.
 The research identified three phases of management action: managers focus on identifying the business opportunity, they adjust processes and technical infrastructure to enable their organization to seize the opportunity and involve the entire organization to ensure a lasting change in their business model. While the impact of B2B sharing on each SME may be considered limited, this research offers original insights how managers drive business model transformation in SMEs. It illustrates a novel process in three distinct phases while identifying dedicated managerial action for each phase.

Does managerial training increase SME managers' effectiveness? A capability development approach

PurposeTraining remains an important factor in developing the managerial effectiveness and capability of small and medium-sized enterprises (SMEs), yet there are concerns regarding the quality of training provided to SME managers in Ghana, hence the weak managerial capabilities observed in SME management. This study, therefore, examines the impact of managerial training on the effectiveness of SME managers in Ghana.Design/methodology/approachDrawing on the human capital theory (Becker, 1962; Rosen, 1977), this study employs the variance-based estimating technique, partial least square structural equation modelling (PLS-SEM) in estimating the effects of training on the managerial effectiveness of SME managers. Adopting a stratified random sampling technique, the study uses primary data collected from 506 SMEs in Ghana to test 4 hypothesised paths.FindingsFirst, the model result indicates that training accessibility and training content are statistically significant in explaining managerial effectiveness at a 1% level. However, both training efficiency and training frequency are statistically insignificant in explaining managerial effectiveness in Ghana. Second, while the industry category is found to influence the relationship between training and managerial effectiveness, gender, manager's age and education are insignificant in explaining any effects.Research limitations/implicationsThough the sample size is large, the findings from this study could not be generalised to the whole of Ghana since it is regionally based. The study could benefit immensely from a triangulated method where a qualitative dimension could provide deeper insight into some of the findings in this study.Originality/valueStudies of this nature focussing on the managerial effectiveness of SME managers in the Ghanaian context is rare. This is one of the few studies in the Ghanaian research context which focuses on the capability development approach in the delivery of managerial training to SMEs.

Business hybrid offerings by manufacturing SMEs: impact of servitization on internationalization of manufacturing SMEs

PurposeThis study examines the significance of the hybrid offerings of servitization by manufacturing small and medium-sized enterprises (SMEs). This study also examines why and how hybrid offerings matter for manufacturing SMEs. The study also investigates the moderating role of risk-taking ability (RA) and technology turbulence (TT) on manufacturing SMEs' performance.Design/methodology/approachThis study has used literature from the areas of servitization, hybrid offerings and internationalization related to SMEs. Also, with the help of theories and literature, a model has been developed conceptually. This model has been validated using a structural equation modeling (SEM) technique on survey data collected from manufacturing SMEs.FindingsThis study finds the significance of manufacturing SMEs' servitization for internationalization effort. Also, this study highlights the moderating impacts of RA and TT on the performance of manufacturing SMEs.Research limitations/implicationsThis study provides valuable inputs to the management of SMEs, especially practitioners that are involved in formulating strategies for hybrid offerings, including servitization activities for the manufacturing SMEs. This study also contributes to the overall body of literature on hybrid offering and servitization.Originality/valueThe study adds values to the overall body of literature for both servitization and internationalization. This study focuses mainly on the significance of hybrid offerings, including servitization by the manufacturing SMEs. Few studies have dealt with such hybrid offerings by manufacturing SMEs as part of the SMEs' internationalization effort. Thus, this study can be considered unique. Moreover, the study investigates the moderating role of RA and TT for SME performance, which adds value toward the body of knowledge in the extant literature.

SMEs Combating Turbulence: Examining the Role of Pricing Capability in Mitigating Market Turbulence and Improving Business Performance

Although competitor and customer have emerged as strategic components of a market-focused approach for performance enhancement, research on the function of organizational capabilities mechanism remains scarce. This research intends to develop a conceptual framework focusing on how competitor orientation (COMPO) and customer orientation (CUSTO) influence business performance (BP) both directly and indirectly through pricing capability (PC). The interaction effects of COMPO and CUSTO on PC and the moderating function of market turbulence (MT) on the PC-BP link are also studied. Partial least square structural equation modeling was applied to analyze survey data from 227 Indian small and medium-sized enterprises (SMEs) functioning in diverse manufacturing industries. The empirical findings indicate: first, COMPO and CUSTO are positively related to PC. Second, COMPO and CUSTO have a positive interaction influence on PC. Third, COMPO has both indirect and direct impacts on BP through PC. Fourth, MT strengthens the positive relationship between PC and BP. Last, CUSTO has a stronger positive effect on PC than COMPO. These findings inform SME managers about the importance of PC mechanism through which COMPO and CUSTO generate superior BP even in the presence of a high MT.