Small And Medium-sized Enterprises Owners Research Articles

Big data analytics, company innovation and risk-taking: influence of absorptive capacity

PurposeThe purpose of this study is to empirically examine the indirect effect of big data analytics capability (BDAC) on performance through innovativeness and risk-taking among small and medium-sized enterprises (SMEs) by considering the moderating role of absorptive capacity (ACAP).Design/methodology/approachThis study utilized a quantitative method through a survey questionnaire. The hypotheses were tested with a sample size of 202 surveys completed by SME owners. Partial least squares structural equation modeling (PLS-SEM) was administered to analyze data via the SmartPLS 4.0 software.FindingsThe analysis revealed that BDAC had an indirect effect on performance through innovativeness and risk-taking. ACAP strengthened the relationship between risk-taking and performance and also enhanced the link between BDAC and performance. Interestingly, ACAP weakened the connection between innovativeness and performance.Practical implicationsFrom a practical standpoint, our study offers valuable insights for entrepreneurs in the process of implementing BDAC. The mediating roles of innovativeness and risk-taking underscore their potential as drivers of SME performance. Also, it is crucial for managers to leverage lower-order capabilities (BDAC) to build higher-order organizational capabilities (innovativeness and risk-taking) and improve performance. Finally, managers are advised to utilize ACAP to identify external opportunities that contribute to performance.Originality/valueThe current study leverages the resource-based view (RBV) to provide new insights into the significance of innovativeness and risk-taking as key drivers to harness the benefits of BDAC for improving the performance of SMEs. Moreover, this study presents evidence of the moderating role of ACAP in the above relationships.

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.

Exploring the role of entrepreneurial self-efficacy into performance of graduate-owned small and medium-sized enterprises in Tanzania

PurposeThe study assessed the role of entrepreneurial self-efficacy (ESE) in the performance of graduate-owned small and medium-sized enterprises (SMEs). Specifically, the paper focused on how graduate owners’ confidence in identifying and commercializing new business opportunities and create new commodities according to the market demand influences both, the financial and non-financial performance of graduate-owned SMEs.Design/methodology/approachThe study employed a cross-sectional survey design, in which 228 SME graduate owners majored in entrepreneurship were involved through online structured questionnaires. The relationship between the variables was determined by using partial least squares structured equation modeling (PLS-SEM).FindingsThe results indicate that entrepreneurial self-efficacy of graduate SME owners influence the financial and non-financial performance of their SMEs. Specifically, financial performance values have a ß-value of 0.576 and a p-value of <0.0001, non-financial performance values have a ß-value of 0.275 and a p-value of <0.0001.Practical implicationsIn order to improve the performance of graduate-owned SMEs, universities should strive to equip graduates with self-confidence, which will enable them to utilize their entrepreneurial competences acquired through the entrepreneurship course programs. This will enable them to tackle business environmental challenges and be able to run successful businesses.Originality/valueThe results of this study extend the use of the self-efficacy theory in explaining the performance of graduate-owned SMEs in Tanzanian. Further, the study focused on ESE as a specific domain developed from entrepreneurship learning for entrepreneurial outcomes. Therefore, the study engaged graduate entrepreneurs who majored in entrepreneurship, which has not been the focus in most studies.

The Impact of Financial Literacy on Investment Decisions: The Moderating Role of Financial Technology

This study investigates the impact of financial literacy on investment decisions and explores the moderating role of financial technology (Fintech). Conducted among small and medium-sized enterprises (SMEs) in Bali Province, Indonesia, the research seeks to understand how financial literacy influences investment choices and how Fintech enhances this relationship. A quantitative approach was used, involving the distribution of questionnaires to 100 SME owners who received business legality through decentralization funds. The data, collected via primary sources and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) 4.0, included measures of financial literacy, investment decisions, and Fintech usage. The findings reveal that higher financial literacy positively impacts investment decisions, with SMEs demonstrating better investment management and decision-making capabilities. Additionally, Fintech was found to strengthen this relationship by providing real-time data and advanced analytical tools that enhance investment decisions for those with strong financial literacy. However, the benefits of Fintech were more significant for individuals with higher financial knowledge, indicating that technology alone cannot replace the need for financial education. This study underscores the importance of integrating financial literacy with technological tools to improve investment outcomes and suggests that future research should explore diverse geographic contexts and longitudinal studies to better understand the evolving dynamics between financial literacy, Fintech, and investment decisions

People-centered knowledge management systems and supply chain performance in SMEs

PurposeThe study explores the impact of people-centered Knowledge Management Systems (KMS) on Supply Chain Performance (SCP). It also aims to reinforce the importance of people in an organization’s survival, particularly from a knowledge-based perspective, by empirically assessing the mediating effect of knowledge sharing on people-centered KMS and SCP. The model being assessed incorporates people-centered KMS that promote knowledge sharing and therefore improve SCP within Small and Medium sized Enterprises (SME) in developing countries, leading to their extended life span.Design/methodology/approachThe study developed a knowledge-based SCP model using people-centered KMS as a predictor variable and knowledge sharing as a mediating variable, with SCP as the outcome variable. The data were collected from a sample of 580 SME owners from across Zimbabwe via a questionnaire developed based on validated constructs available in literature that was vetted through a pilot survey before distribution. The dataset was subsequently tested for validity of constructs and scales and analyzed using multiple regression.FindingsThe results of the study showed significant influence of three people-centered KMS, namely, Communities of Practice (CoP), Innovation Management (IM) and Organizational Culture (OC), on knowledge sharing but not from Social Capital. Thereafter, significant influence was also found of knowledge sharing on three process-based measures of SCP, namely, Time-Related Performance (TRP), Cost-Related Performance (CRP) and Responsiveness-Related Performance (RRP), but not on Operational Quality-Related Performance (OQRP). Thus overall, it was confirmed that people-centered KMS has a salutary impact on process-based SCP, with knowledge sharing serving as a significant mediator.Research limitations/implicationsThe study makes a novel contribution to the extant literature by providing insight into how people-centered KMS impacts SCP through knowledge sharing. Additionally, the geographical scope of the study also makes it among the few that have studied supply chain management within the context of developing economies, especially those that face significant economic pressures, such as Zimbabwe. Finally, given the criticality of SMEs to the economic growth in developing economies juxtaposed with the low survival rates of SMEs therein, the study reveals a relatively low-cost strategy of knowledge sharing among supply chain partners as a valid strategy to improve the SCP of these SMEs in an effort to enhance their survival rates. The primary limitation of the study relates to potential difficulty in the generalizability of findings because data were collected from a single country.Originality/valueThe original contributions of the study include: utilizing a people-centered knowledge management perspective, an establishment of the relationship between KMS on SCP and demonstrating the salience of knowledge sharing as a mediator; addressing the dearth of literature on supply chain management in developing economies, especially those with stressed economies; demonstrating the usefulness of knowledge sharing as a relatively low-cost but effective strategy to improve the performance of SMEs in a developing economy and thus lead to higher survival rates, thus providing a tool that can be used by the public and the private sector in developing countries to build structures for successful economic development.

Dynamic effect of critical success factors of SMEs on entrepreneurial performance via e-commerce performance

This study examines the critical success factors (CSFs) that influence the adoption of e-commerce platforms by small and medium-sized enterprises (SMEs) and see how the adoption affects the SMEs' subsequent entrepreneurial performance. Building on the technology-organization-environment (TOE) and theory of entrepreneurial competency (TEC), the study presents and evaluates a comprehensive model that considers CSFs components as well as the moderating effect of entrepreneurial competencies. Convenience sampling was used to gather data from a survey of Bangladeshi SMEs using a standardized questionnaire; structural equation modeling (SEM) was then used to analyze 384 valid samples. Empirical findings indicate that CSFs elements, particularly organizational and external factors, have a significant association with e-commerce performance. The study also presents and supports the idea that entrepreneurial competencies have a moderating influence on the link between overall entrepreneurial performance and e-commerce performance. The findings contribute theoretically by outlining key influencers of e-commerce and entrepreneurial performance offering insights for young entrepreneurs and future researchers. It underscores the importance of focusing on CSFs for ensuring business success. Notably, the research emphasizes the pivotal role of entrepreneurial competencies for young entrepreneurs and SME owners providing practical insights for enhancing personal qualities and decision-making abilities to ensure entrepreneurial success in the dynamic e-commerce industry.

Sustaining SMEs through Indigenous Knowledge Systems: Exploring opportunities and challenges

Background: Small and medium-sized enterprises (SMEs) play a crucial role in driving economic growth and development, necessitating innovative strategies to enhance their sustainability and resilience in an ever-evolving business landscape. The evolving business landscape requires innovative strategies for SMEs’ sustainability and resilience. Recognising this imperative, the strategic incorporation of Tshivenda Indigenous Knowledge Systems (IKS) within SMEs emerges as a compelling avenue for exploration.Aim: This study aims to provide insights into the challenges and opportunities faced by SMEs concerning the adoption of Tshivenda IKS to foster business sustainability.Setting: The study focused on Tshivenda IKS as practised by SME owners who are Tshivenda speakers, located in Musina, Limpopo, South Africa, and in Beitbridge, Matabeleland South, Zimbabwe.Methods: The study used qualitative research with a grounded theory design, interviewing 12 participants selected through theoretical sampling. Thematic coding was applied for data analysis.Results: The study identifies greater collaboration, access to markets, brand differentiation and competitive advantage as opportunities, whereas cultural differences, a lack of strategic planning, and shortages in sustainable supply chains were identified as key challenges to SMEs incorporating Tshivenda IKS in their business operations.Conclusion: The study sheds light on the challenges, opportunities and managerial implications associated with integrating Tshivenda IKS into SMEs for sustainability purposes. Leveraging Tshivenda IKS offers substantial opportunities for sustainable business practices and economic development in SMEs, despite the limitations.Contribution: The study enriches understanding of the opportunities and challenges experienced by SMEs when using Tshivenda IKS in fostering business sustainability.

Entrepreneurial Marketing and Performance of Small and Medium Scale Enterprises in Akwa Ibom State

Entrepreneurial marketing has become increasingly popular in the fields of entrepreneurship and marketing, as well as among organizations aiming to obtain a competitive edge. In practice, small and medium-sized enterprises (SMEs) in Akwa Ibom State, Nigeria, generally see entrepreneurial marketing as an appealing and efficient marketing strategy motivated by the desire to make the most of their unique strengths. These SMEs are involved in the sale of products and services. This study aimed to investigate the influence of entrepreneurial marketing on the performance of small and medium-scale enterprises in Akwa Ibom State. The sample size for the study was 400, determined using the Taro Yamane formula. The proxies for entrepreneurial marketing were considered jointly as customer orientation, entrepreneurial orientation, and innovation orientation. The researchers adopted a survey research design. A structured questionnaire was designed to obtain data from 400 SME owners. We also adopted a simple random technique for this study. We tested the combined hypothesis using multiple regression analyses. The study revealed a significant influence of customer orientation, entrepreneurial orientation, and innovation orientation on the performance of small and medium-scale enterprises in Akwa Ibom State. In conclusion, this study empirically provides evidence of the influence of entrepreneurial marketing on SME performance. SMEs can improve their performance by embracing the entrepreneurial marketing philosophy. Based on these conclusions and findings, the researchers recommended that SMEs in Akwa Ibom State improve their customer orientation to understand their customers better.

Twice as effective: business environment, SME owners’ satisfaction, and local government revenue performance

ABSTRACT Spatial disparities in human and social capital, entrepreneurial culture, and industrial specialisation emphasise the pivotal role of local governments in shaping the business environment. Nevertheless, scant attention has been accorded to the complex relationships between local government activities, small and medium-sized enterprise (SME) owners’ satisfaction, and subsequent local economic outcomes. Using exploratory factor analysis, confirmatory factor analysis, and structural equation modelling on data from 513 SME owners, we found that higher SME owner satisfaction is positively associated with increased local employment and amplified municipal tax revenues from SMEs. Interestingly, our results indicate a negative relationship between SME owner satisfaction and the annual change in self-employment rates within the locality. This study contributes to the literature by empirically linking local government services to tangible economic outcomes through SME owners’ satisfaction. It provides valuable insights for policymakers on optimising the local business environment to foster SME growth and enhance municipal economic performance.

SME resilience: Critical financial planning success factors post-COVID-19

Small and medium-sized enterprises (SMEs) are crucial to South Africa’s economy as they provide employment, contribute to development, reduce poverty, and promote entrepreneurship. However, the COVID-19 pandemic has severely impacted SMEs in the country, posing a threat to their survival. The purpose of the study was to identify the financial planning critical success factors that are essential for SME performance in a post-COVID-19 pandemic environment. The study followed a positivist paradigm, and a quantitative survey approach was employed. South African SMEs across the various sectors of business were targeted to provide a holistic view of the financial planning strategies contributing to performance. A total of 282 questionnaires were completed electronically by the SME owners using Google Forms, which were then analyzed using SPSS and Smart PLS software. The regression model for structural equation modeling revealed a strong and significant link between financial planning and SME performance. Financial planning has a strong, significant positive effect on SME performance, as indicated by the path coefficient (β = 0.227, p = 0.002). The importance of this study lies in its ability to provide valuable insights to businesses regarding financial planning strategies to enhance SME success in a post-COVID-19 environment.

EXPLORING THE INFLUENCE OF SMEs DEMOGRAPHIC PROFILE ON TAX COMPLIANCE BEHAVIOUR

Tax compliance is the extent to which a taxpayer complies or fails to comply with the tax rules of the country. Tax compliance is crucial for the government, as taxes constitute the main source of income. In 2023, the Inland Revenue Board of Malaysia (IRBM) collected RM183.3 billion in tax revenue, representing a substantial increase of RM7.8 billion, or 4.49%, compared to the previous year. The amount collected is the highest by IRBM, which reflects the effective tax collection mechanisms. Small and medium-sized enterprises (SMEs) are the main drivers of economies in emerging nations and in Malaysia, SMEs account for 98.5% of all businesses. Therefore, it is vital for tax authorities to understand the diverse profile of SMEs as part of tax-driven strategies to maximise tax collection. The purpose of this study is to provide insights based on previous studies on determinants of tax compliance among SMEs in Malaysia. The study highlights demographic factors, namely age, gender, education level and income level, that influence the tax compliance behaviour of SMEs. The study can add to the literature on factors influencing tax compliance by highlighting how compliance behaviours differ among various demographics of SME owners and how these differences affect their compliance decisions. The paper might assist tax authorities in dealing with tax compliance issues by gaining a deeper insight into the importance of various demographic characteristics of SMEs.

Small‐ and medium‐sized enterprises' carbon footprint reduction initiatives as a catalyst for green jobs: A systematic review and comprehensive business strategy agenda

AbstractMotivated by the growing attention on climate change, this study provides an up‐to‐date and comprehensive systematic literature review (SLR) on small‐ and medium‐sized enterprises (SMEs) carbon footprint reduction initiatives and green jobs. Based on datasets from databases that include Web of Science, Scopus, ProQuest and Google Scholar, we conducted a SLR of 70 published articles spanning 2012 to 2022. Using VOSviewer and InfraNodus, bibliographic cluster analysis revealed the existence of three clusters namely; the role of green job initiatives and green human resource management in SMEs (cluster 1); green innovation, green Initiatives, green strategy and circular economy in SMEs (cluster 2); carbon footprint reduction initiatives, carbon performance, carbon management and carbon emission in SMEs (cluster 3). We found that SMEs adopt green supply chain, employing energy‐saving strategies, eco‐friendly waste reductions and recycling, circular economy, and green office practices. The study results indicate that these carbon footprint initiatives can lead to green job creation since green competences are required to implement green initiatives. However, value propositions relating to carbon reduction initiatives within SMEs need to be integrated with employee engagement. Additionally, the SLR identifies future research areas that include exploring the association among SMEs carbon footprint, green innovation and green jobs, and strategies to enhance climate change initiatives. Consequently, we call for future research to focus on the design of green jobs tracking and carbon footprint reduction reporting framework to support SMEs' green initiatives. The findings have key policy implications for SME owners, policymakers, practitioners and future researchers.

Direct or Indirect Exporting? The Joint Influence of Gender and Immigration Background on Export Strategies of Canadian SMEs

Given the challenges women-owned small and medium-sized enterprises (SMEs) face in global markets, we investigate the effects of gender and immigrant background on their direct versus indirect export strategies. Drawing on insights from social capital theory, our analysis consists of a sample of 109 Canadian SMEs. We found that although women-majority-owned SMEs are less likely to export directly compared to their men-majority-owned counterparts, women owners with an immigrant background have the potential to overcome network-related barriers, thus weakening the negative effect of gender on direct exporting. These results point to the significance of having access to international networks and the necessity to leverage this linkage to support the direct exporting approach for women-majority-owned SMEs. Our research guides SME owners and managers with global aspirations. We suggest policymakers develop initiatives to encourage women owners to identify, build, and cultivate international business relationships and improve the design and implementation of policies targeted at immigrant export businesses.

The significance of green purchase behaviour: mediating and moderating role of waste management and eco-regulation

This study examines the significance of green purchase behaviour in small and medium-sized enterprises (SMEs) and explores the mediating and moderating roles of waste management and eco-regulation in this context. The theoretical frameworks of resource-based view was utilized to conceptualize the relationships and dynamics between green purchase behaviour, waste management, eco-regulations, and sustainable performance in SMEs. Insights from these theoretical perspectives help in understanding how internal resources, capabilities, external pressures, and institutional factors interact to drive sustainability practices and business outcomes. Using a cross-sectional design, a questionnaire survey was administered to 225 SME owners. Using the Structural Equation Modelling (SEM) technique of Partial Least Squares (PLS), this study empirically analyses the relationships between green purchase behaviour, waste management practices, eco-regulations, and sustainable performance in SMEs. The results confirmed that green purchase behaviour (GPB) positively impacts waste management (WM). Furthermore, WM positively impacts financial performance (FP), social performance (SP) and environmental performance (EP). The results validate the mediating role of WM. The moderating results revealed that eco-regulation (ER) does play a moderating role in proposed relationships. As SMEs worldwide grapple with the imperative to adopt sustainable business practices, this study provides valuable insights and a roadmap for SMEs seeking to navigate the complex landscape of environmental responsibility and social accountability. The findings provide practical guidance for SMEs striving to strike a balance between economic success and environmental stewardship, fostering a holistic approach to sustainability of SMEs.

The mediating role of accounting information systems in small and medium enterprise strategies and organizational performance in Iraq

This paper examined accounting information systems (AIS) as a mediator between small and medium-sized enterprises (SMEs) strategies, including (finance source, administrative innovation, organizational culture, developing capabilities levels of SMEs, information source, development of business managers, and technological innovation) and organizational performance. In this quantitative study, 450 self-administered questionnaires were distributed to the managers and owners of SMEs using purposive sampling. Data were analyzed using the structural equation modeling (SEM) method via SmartPLS3 Software. The study offers empirical findings on the importance of AIS as a mediator, considers various factors, and provides clear strategies for better work performance. The study confirmed that the SMEs’ strategy and the use of an AIS significantly and positively affected SMEs’ organizational performance, while AIS use partially mediated between SMEs’ strategy and organizational performance. This result confirms that an SME can enhance its performance by using AIS. AIS can support organizational performance through an SME strategy, avoid human errors, provide cost-against-time savings, and assist in timely internal decision-making considering long-term benefits. However, the results may not reflect the actual performance situation and cannot be generalized to all provinces or other countries because environments differ.

Challenges for the development of sustainable SMEs in the cement industry: a SWARA–WASPAS approach

Purpose This study aims to examine the obstacles and approaches to achieving sustainable development in India’s cement solid and hollow brick production business, with a specific emphasis on incorporating the triple bottom line (TBL) concept into strategies for small and medium-sized enterprises (SMEs). Design/methodology/approach Using the step-wise weight assessment ratio analysis (SWARA)–weighted aggregated sum product assessment (WASPAS) approach, the study prioritized 11 economic, 9 environmental and 14 social sustainability indicators based on information collected from literature and expert opinions. Findings The study provides valuable insights into the difficulties encountered by SMEs while implementing strategies that focus on the TBL. By putting emphasis on the sustainability criteria, the key areas that require attention to promote sustainability get identified and addressed. Research limitations/implications The study’s focus on SMEs in this industry limits its generalizability. To have a more complete picture, future studies may include many areas. Practical implications The identified and prioritised sustainability characteristics help small and medium-sized firms (SMEs) design strategies to address sustainable development concerns. The research findings could also inform policymakers and regulatory bodies about the challenges faced by SMEs in the cement and brick production sector regarding sustainability. It could highlight the need for supportive policies and regulations to promote sustainable practices and incentivize SMEs to adopt the TBL approach. The paper can offer practical insights for SME owners and managers on integrating sustainability principles into their business strategies. Actionable recommendations and best practices for enhancing environmental performance, social impact and economic viability within the context of cement and brick production are outlined. Social implications TBL policies improve the sustainability and profitability of small and medium-sized firms (SMEs) and promote environmentally and socially responsible practices that benefit the industry and society. The research paper may facilitate greater engagement and collaboration among various stakeholders involved in the cement and brick production industry, including SMEs, larger corporations, government agencies, non-governmental organizations (NGOs) and local communities. This cooperative approach can encourage open communication, the establishment of trust and coordinated actions to tackle sustainability challenges, ultimately improving social cohesion and collaboration. Originality/value This study provides new and valuable insights by investigating the development of TBL strategies in SMEs in the cement solid and hollow brick manufacturing sector in India. The utilization of the SWARA–WASPAS technique brings novelty to research on sustainable development in this field.

AI Adoption in Jordanian SMEs: The Influence of Technological and Organizational Orientations

This study examines the factors influencing the adoption of artificial intelligence (AI) in small and medium-sized enterprises (SMEs) in Jordan, a key player in the growing Middle Eastern economy. Rooted in the Technology–Organization–Environment framework, we specifically focus on the role of technological capabilities and organizational dynamics in shaping AI adoption within Jordanian SMEs. A comprehensive survey involving 364 SME owner-managers in Jordan serves as the empirical foundation. Findings reveal the significant impact of employee IT knowledge, IT infrastructure, managerial commitment, training initiatives and well-designed reward systems in shaping SME owners’ or managers’ attitudes to AI. These findings provide valuable insights for SME leaders and stakeholders, guiding them in developing strategies to smoothly integrate AI technologies in line with Jordan’s societal needs. The article concludes by emphasizing the study’s contributions, implications and limitations while suggesting potential directions for future research in this field.

Ubuntu or Compliance? Knowledge, Attitudes, and Practices of Owners of Small- Medium-Sized Enterprises in Johannesburg, South Africa Regarding Corporate Social Responsibility

ABSTRACT There is a paucity of studies demonstrating how small and medium-sized enterprises (SMEs) adopt CSR interventions to enhance social and economic conditions of communities within which they operate. There is also a prevailing stereotype that Corporate Social Responsibility is only applicable to big, multinational companies. The study therefore explored the knowledge, attitudes, and practices of 10 owners of SMEs in Johannesburg, South Africa regarding CSR. Guided by a social development lens, the study adopted a qualitative case study research design. Thematic analysis of interview responses revealed that most of these owners considered their SMEs to be practising CSR, and were motivated primarily by the intrinsic spirit of Ubuntu rather than extrinsic compliance with regulatory requirements. While some CSR interventions (such as skills-transfers as empowerment) were found to be consistent with the social development approach, others, such as philanthropy, were not necessarily developmental but nevertheless important in a developing country such as South Africa with its high levels of poverty. The key contributions of the study to knowledge are first, that it debunks the misconception in the literature that SMEs are too small and financially incapable of implementing CSR interventions; and second, that it enhances understanding from a developing world perspective of the factors motivating SME owners to engage in CSR.

Thriving in Turmoil: Unraveling the Interplay of Resources, Resilience, and Performance among SMEs in Times of Economic Vulnerability

This research endeavours to contribute to the existing body of scholarly work by elucidating the pivotal role of social networks in bolstering the resilience of Small and Medium-sized Enterprises (SMEs) amid the propagation of COVID-19. Despite the considerable research on the interplay between networks and firms' performance, extant literature still needs to comprehensively elucidate how social networks influence organizational performance, particularly within the context of the personal dis-contact phase observed in Pakistan. Moreover, the crucial nexus between resilience, social networks, and firm performance still needs to be adequately explored. Consequently, this paper seeks to address these gaps by introducing a novel conceptual framework termed the Resource-Resilience-Performance framework. This framework aims to delineate the intricate mechanisms through which social networks, as a valuable resource, facilitate the adaptive capabilities of SMEs, thereby fostering resilience and ultimately enhancing sustainability amidst crises. Employing a deductive approach, this study adopts a survey strategy to gather data from 410 SME owner-managers, focusing on the third phase of the COVID-19 pandemic in Pakistan. Data collection is executed through an adaptive questionnaire. Subsequently, an analysis is conducted using SmartPLS with the Bootstrapping approach. The findings reveal that formal and informal social ties are crucial in providing SME owners with valuable information from their social networks. These networks serve as a support mechanism, aiding managers in making informed decisions amidst adversities and granting them a competitive edge over their counterparts. Given the unavailability of a comprehensive and up-to-date list of SMEs in Pakistan during the pandemic, the snowball sampling technique was utilized. Consequently, the generalizability of the findings may be questioned. However, there remains potential to establish a directory of SMEs and employ probability sampling techniques in future studies. This research contributes to social network theory by enriching our understanding of its application during the pandemic. Furthermore, it empirically demonstrates the instrumental role of social networks in providing support during crises, offering guidance to managers on cultivating robust social ties as a proactive strategy for navigating future uncertainties. Ultimately, this study underscores the significance of social capital as an immunizing factor for SMEs operating in developing countries, particularly within the context of Pakistan.

Financial Literacy on Digital Banking and Financial Performance among Small and Medium- Sized Enterprises in Sri Lanka

This study delves into how financial literacy shapes the relationship between digital banking and the financial performance of small and medium-sized enterprises (SMEs) in Sri Lanka. Quantitative data were gathered from 380 SMEs across nine provinces using a deductive approach. Utilizing SPSS, the study scrutinized how financial literacy moderates the connection between digital banking and SME financial performance. Results reveal a significant and positive moderating influence of financial literacy on this relationship. Furthermore, the study highlights the constructive impact of digital banking on SME development and financial performance in Sri Lanka. Importantly, participation in financial literacy programs provided by entrepreneurial support organizations emerges as a crucial factor in equipping SME owners with the requisite knowledge for making informed financial decisions. This research underscores the pivotal roles of financial literacy and digital banking in bolstering SMEs, advocating for their strategic utilization to elevate financial performance. Additionally, it fills an important gap in understanding by examining how mobile, digital, and digital banking affect SMEs in Sri Lanka. This emphasizes the crucial role of financial literacy in encouraging the adoption of digital banking and promoting SME growth in developing economies.