Small Medium-sized Enterprises Research Articles

Co-Creating Tailored Solutions to Combat Sedentary Behaviour: Insights from Scottish SMEs

Abstract Background Prolonged sedentary behaviour (SB) poses health risks for office workers, especially in small-to-medium-sized enterprises (SMEs) often overlooked by current interventions. This abstract aims to report and examine solutions developed through co-creation for SB in SMEs. Methods Three Scottish SMEs, a construction company (n = 150) and two charities (n = 100; n = 30), participated in a co-creation process to create SME-specific actions on SB. Each formed an action group of employees (n = 9-12) as co-creators. The process consisted of between 6-8 workshops (each 1.5h) depending on the company, with workshops improved during the process based on formative reflection from co-creators. The co-creation workshops, facilitated by two researchers, initially involved jointly mapping the company’s current situation and building knowledge and awareness of SB. Further workshops focused on action planning, including brainstorming, feasibility, piloting, and final action(s) development. Following the co-creation of actions, researchers identified the Behaviour Change Techniques (BCTs) underlying the developed actions. Results Each company created a set of actions unique to them, e.g. standing desk promotion, a games room, and innovative meeting strategies. Regarding the BCTs, all companies included adding objects to the environment, physical restructuring, prompts or cues, and addressing health or social and environmental consequences. Additionally, they all incorporated ‘step challenges’ with behaviour self-monitoring and feedback techniques. Two companies offered incentives or rewards; one emphasized role modelling, and another included social support. Conclusions The three companies created tailored actions through the co-creation process. While there were some commonalities, the differences in actions and BCTs among companies underscore the necessity for solutions tailored to the organizational context and the importance of involving employees in creating solutions. Key messages • Co-created actions to combat SB used diverse strategies, emphasising a multifaceted approach to address workplace SB. • Variability among SMEs’ co-created actions underscores the importance of stakeholder involvement to tailor solutions to organisational contexts.

Impact of Corporate Entrepreneurship and Market Orientation on the Performance of Small Medium-Sized Enterprises in Ibadan Nigeria

The performance of Small and Medium-Sized Enterprises (SMEs) is pivotal to economic development, particularly in emerging economies like Nigeria. This paper explores the intersection of Corporate Entrepreneurship (CE) and Market Orientation (MO) and their collective impact on the performance of SMEs in Ibadan, Nigeria. Two research questions were raised, and two hypotheses were tested. The study employed the survey research design with five hundred and forty-six (546) respondents as subjects. Representative SMEs were purposively selected from each of the 11 local government areas in Ibadan Metropolis. Primary data was employed using the questionnaire to elicit information from the respondents. Data collected were analysed using Canonical Correlation and Multiple Regression. Findings indicated a combined impact of CE and MO on the performance of SMEs with a Canonical Correlation of 0.510 at p < 0.0. The results also showed that corporate innovation, corporate pro-activeness, risk taking, entrepreneurial culture, intelligence generation, intelligence dissemination and responsiveness using Multiple Regression jointly predicted SMEs performance at F = 19.501; R= .450, R2 = 202, Adj. R2 = .192; P < 000. Based on these results, it is recommended that SMEs should emphasise the practices of CE and put more effort into market research specifically to make confident, progressive business decisions based on market development and market entry opportunities that can lead to sustainable competitive advantage and superior organisational performance.

Implementation Challenges of Building Information Modelling (BIM) in Small to Medium-Sized Enterprises (SMEs) Participating in Public Projects in Qatar

This research investigates the implementation challenges of Building Information Modelling (BIM) in Small to Medium-Sized Enterprises (SMEs) participating in public projects, with a focus on the construction industry in Qatar. Through a combination of literature review, surveys, and interviews, the study identifies key obstacles such as interoperability issues, financial constraints, organisational and cultural resistance, and the lack of comprehensive training programs. The literature highlights the fragmented nature of construction projects and the potential of BIM to improve efficiency through enhanced data handling and collaboration. However, SMEs often struggle with the high initial costs of software and hardware, as well as the need for extensive training to bridge the skill gap. Interviews with industry professionals reveal that while mandatory BIM integration in public projects drives adoption, it also exacerbates these challenges for SMEs, which may lack the necessary resources and expertise. Survey findings indicate that contractors frequently encounter issues with understanding and implementing BIM and meeting the government body standards, suggesting a need for better training and support. The study also emphasises the importance of strategic incremental adoption, where SMEs gradually integrate BIM into their processes, starting with low-level implementation in privately funded projects. The research concludes that while BIM offers significant benefits for the construction industry, its successful adoption requires targeted support for SMEs. This includes financial incentives, improved interoperability standards, comprehensive training programs, and strategic change management approaches. Addressing these challenges will enable SMEs to fully leverage BIM's potential, enhancing project efficiency and competitiveness in the construction sector.

Improving international brand performance: the implications of marketing capabilities, brand orientation and customer value cocreation

Purpose To thrive in today’s competitive market, international small- to medium-sized enterprises (SMEs) recognize the importance of building strong brands. Choosing the right capabilities to effectively drive brand performance remains a key challenge for SMEs. This study aims to explore how marketing capabilities affect brand orientation and performance. Specifically, the study considered the mediating impact of value cocreation and the moderating effect of innovation capabilities on the association between brand orientation and performance. Design/methodology/approach The population of interest included SMEs exporting food and agricultural products. A sample of 296 managers and export executives completed the questionnaire. Structural equation modeling (SEM) using Smart PLS3 was applied to analyze the data. Findings The findings revealed that export market planning capabilities positively affect brand orientation, but the impact of marketing information capabilities on brand orientation was not supported. The results showed that brand orientation was directly and indirectly associated with brand performance through the mediating effect of value cocreation, and that innovation capability adversely moderated the relationship between brand orientation and performance. Research limitations/implications This research focused only on two primary internal marketing capabilities affecting brand orientation, i.e. market information and product planning capabilities. Practical implications Explaining why some international SMEs adopt brand orientation activities, the results may help international firms increase their brand performance by emphasizing their marketing capabilities and creating covalue with their customers. Originality/value This research expands the existing knowledge of branding in international markets.

Reputational Costs as a Tax Avoidance Deterrent in Small to Medium Enterprises

Reputational concerns are considered a disincentive to tax avoidance. Prior literature examining tax avoidance in the context of large and listed firms attributes this relationship to the scrutiny to which large firms are subject. This begs the question if reputational concerns are a relevant tax avoidance deterrent in the setting of small to medium sized enterprises (SMEs) because SMEs have fewer stakeholders, lower disclosure requirements, and are subject to less media attention. Using survey data from Belgian SMEs, we find that SMEs with reputational concerns report an effective tax rate that is 8.57 percentage points higher than that of SMEs with low reputational concerns. We further examine which firm characteristics moderate the deterrent effect of reputational concerns on tax avoidance. We find that potential reputation damage is more important to the tax avoidance decision of firms with less financial freedom and firms with a higher need to maintain creditor relations. Finally, we document that reputational concerns act as a corporate tax avoidance deterrent against aggressive positions.

Strategies Management for Mass Customization in the Apparel Industry: Case of Market Demand and Risk in China

With the development and adjustment of the industrial structure, the manufacturing industry, especially the transformation and upgrading of the apparel industry, is crucial for Chinas high-quality economic development. This paper studies the strategies of cooperation, consumer demand response, and risk identification and control in the mass customization market of the Chinese apparel industry. Firstly, it explores the co-creation strategies among enterprises in mass customization, analyzing cases of efficient resource allocation and cooperation in excellent apparel companies. Secondly, from the consumer behavior perspective, it studies how companies meet personalized needs through combined online and offline marketing models and brand positioning strategies. Finally, analyzing the supply chain, consumers, and internal aspects of enterprises, the risk factors in the mass customization market are identified, and corresponding pre-control measures are proposed. This study aims to provide management suggestions for apparel enterprises in the wave of mass customization, helping small to medium-sized enterprises (SMEs) face market challenges and improve operational efficiency and market competitiveness.

Organizational slack, ambidextrous search and high-tech SMEs’ performance: do strategic orientations matter?

Ambidextrous search behaviors that jointly looking for technological and market knowledge gain attention in the innovation management literature. This study treats the ambidextrous search behaviors as a technology-market search paradox and examines the effect of organizational slack on the paradox and further explore whether this paradox has synergistic effects on performance in high-tech small medium-sized enterprises (SMEs). Besides, by integrating the literature of ambidextrous search and strategic management, we seek to understand the roles of strategic orientations, including growth-oriented and profit-oriented, in SMEs’ technology-market search paradox. Based on panel data of 547 high-tech SMEs, we find that organizational slack promotes both technology and market search, and ambidextrous search separately enhance high-tech SMEs’ performance, while the interaction of technology search and market search is negatively related to performance. Further, a growth-oriented strategy positively moderates the link between organizational slack and ambidextrous search and a profit-oriented strategy reinforces the relationship between organizational slack and technology search. We further enrich search-related and strategic literature.

Striking the balance: Configurations of causation and effectuation principles for SME performance

Causation and effectuation are two fundamental decision-making logics that managers use for crucial firm strategic decisions. However, existing research has yet to agree on the relationship between the two logics, supporting both the substitution and complementarity of causation and effectuation in influencing firm performance. This leaves us with a puzzle: How do causation and effectuation combine in balance to improve firm performance? To address the gap, we utilize a fuzzy set qualitative comparative analysis (fsQCA) with data collected from 344 small to medium-sized enterprises (SMEs) in China to uncover the dynamic relationships between the two logics. Our findings indicate that causation or effectuation alone is insufficient to achieve superior firm performance. By distinguishing between four dimensions of effectuation, we identify three types of configurations for high performance: (1) causation with promotion-focused effectuation principles; (2) causation with prevention-focused effectuation principles; (3) causation with hybrid-focused effectuation principles. More importantly, we find that the effectiveness of the configurations depends on the firm development stage. Our findings provide SMEs with practical insights into how to effectively choose their decision-making logic when faced with different firm growth challenges.

Barriers and facilitators to implementing workplace interventions to promote mental health: qualitative evidence synthesis

BackgroundDespite growing interest in workplace mental health interventions, evidence of their effectiveness is mixed. Implementation science offers a valuable lens to investigate the factors influencing successful implementation. However, evidence synthesis is lacking, especially for small-to-medium-sized enterprises (SMEs) and for specific work sectors. The objectives of this review are to establish the scope of research with explicit analysis of implementation aspects of workplace mental health interventions and to identify barriers and facilitators to implementation in general and within SMEs and selected sectors.MethodsA systematic scoping review and meta-synthesis of mixed methods process evaluation research from 11 databases, with the evaluation of methodological quality (MMAT) and confidence in findings (CERQual), was conducted. We selected information-rich studies and synthesised them using domains within the Nielsen and Randall implementation framework: context, intervention activities, implementation; and mental models.ResultsWe included 43 studies published between 2009 and 2022, of which 22 were rated as information-rich to be analysed for barriers and facilitators. Most studies were conducted in healthcare. Facilitators reflecting ‘high confidence’ included: relevant and tailored content, continuous and pro-active leadership buy-in and support, internal or external change agents/champions, assistance from managers and peers, resources, and senior-level experience and awareness of mental health issues. Healthcare sector-specific facilitators included: easy accessibility with time provided, fostering relationships, clear communication, and perceptions of the intervention. Stigma and confidentiality issues were reported as barriers overall. Due to the small number of studies within SMEs reported findings did not reach ‘high confidence’. A lack of studies in construction and Information and Communication Technology meant separate analyses were not possible.ConclusionsThere is dependable evidence of key factors for the implementation of workplace mental health interventions which should be used to improve implementation. However, there is a lack of studies in SMEs and in a larger variety of sectors.Systematic review registrationResearch Registry (reviewregistry897).

Microfinance and Entrepreneurial Empowerment of Women: The Case of Women’s Microfinance Initiative in Uganda

Purpose: Women have always been underestimated and discriminated in social, economic and political spheres of life. Moreover, the traditional household chores create hindrances in their social and economic empowerment. Entrepreneurship development among women largely focuses on the empowerment of women through developing skills in Small to Medium-sized Enterprises (SMEs) and business ventures by taking risk of making investment decisions. Over the years, various efforts have been made by Government and Non-Government Organisations to promote women empowerment in Uganda and one such effort is through the micro-finance intervention. This Paper attempts to explore the impact of micro finance on the women’s entrepreneurial empowerment with specific reference to Women’s Micro-finance Initiative (WMI) in Buyobo in North Eastern Uganda. Materials and Methods: The study adopted an exploratory cross sectional research design. The target population comprised women’s microfinance Initiative Laon beneficiaries. A study Sample of 1,380 Respondents were purposively selected. The main Instrument for data collection was a structured Questionnaire and was complemented by Interviews and Focus Group Discussions. The study findings were presented in form of Tables, Graphs, Pie charts and where appropriate and where necessary, quotes or excerpts were used to strengthen the interpretation. Findings: The study findings reveal that the Micro-finance has a positive impact in terms of improvement in Business Operations; Diversification of Businesses; Business Skills Improvement; Improvement in Household livelihoods and living standards. The study findings will act as a basis for policy formulation as it will provide empirical evidence for policy makers to formulate relevant policies geared towards enabling environment for enhancing women Entrepreneurial Empowerment in Uganda. The study will further contribute to the struggle to eliminate gender inequality in Entrepreneurial empowerment. The study will further add value to existing scholarship which the future scholars may use to generate further research in the area of Microfinance and Entrepreneurial Empowerment of Women. Implications to Theory, Practice and Policy: The study recommends strengthening and expansion of micro-finance support to resource poor and vulnerable women in other parts of the country through entrepreneurial education and training, provision of access to credit and financial services as well as markets. The study will contribute to critical debates and raise awareness on issues pertaining to Microfinance and Entrepreneurial Empowerment of Women at community level which will help to build initiatives for effective women Entrepreneurial empowerment in Uganda.

Effective cybersecurity risk management practices for small and medium-sized enterprises: A comprehensive review

Small-to-medium-sized enterprises (SMEs) make up a significant portion of the economies of many nations. However, research shows that many companies fall short when establishing cyber security, making them vulnerable to assaults. In addition, while accounting for a sizable share of firms, studies on cyber security focus on SMEs. This study reviews the latest evaluation on the cyber security of SMEs, emphasizing how well this experiment aligns with the well-known National Institute of Standards and Technology (NIST) and Cyber Security Framework (CSF). The report begins by underlining the crucial necessity of cybersecurity in the digital era and the particular issues that SMEs confront. It emphasizes the financial and reputational dangers associated with cyber events, emphasizing the importance of solid cybersecurity procedures. The review investigates several cybersecurity risk management approaches, strategies and frameworks, providing insights into their relevance and efficacy in the context of SMEs. We discovered that study in SME cyber security is sophisticated and specialized attention on the NIST and CSF recognize as well as defend tasks, with minimal effort spent on the other current activities. SMEs should be equipped to detect, react to, and recover from cybercrime. SMEs might not have appropriate information on responding to such occurrences if research in these areas is pathetic. In future studies in SMEs, there needs to be an excellent equilibrium in cyber security. Scholars ought to use firm, proven mathematical methods to improve and test their work, yet governments and academia are urged to invest in providing researchers with incentives to broaden their research horizons.

Customer participation in new product development and the impact of remote work

PurposeThe COVID-19 pandemic has presented small-to-medium size enterprises (SMEs) with a massive and unexpected challenge that has caused many to adjust their operational standards. Perhaps the biggest change has been the shift to remote work and away from traditional office spaces. Thus, this study aims to explore the implications of this shift within the context of customer participation in the new product development (NPD) process.Design/methodology/approachOur study surveys 218 small-to-medium size business-to-business firms in the USA on a variety of questions revolving around their NPD processes, customer collaboration and the shift to remote work. The authors use structural equation modeling in the AMOS program to analyze the data.FindingsThe findings indicate that both customer participation breadth and customer participation depth positively impact new product performance. Furthermore, these relationships are found to be contingent upon whether firms rely on remote work during the collaboration process. The results show that accessing a broader variety of explicit customer insights (i.e., breadth) has become easier in the increasingly remote collaboration environment. However, as face-to-face customer participation in NPD has decreased, the prospect of gaining deep, tacit customer knowledge relevant to product development (i.e., depth) has become more challenging.Originality/valueThis study contributes to the knowledge-based view of the firm and the customer participation literature, and it also has implications for managers adjusting to the shift to remote work following the COVID-19 pandemic. The findings provide additional evidence that customer participation is an effective strategy for SMEs (Morgan et al., 2018), but remote work has both positive and negative implications regarding the type of external knowledge that is acquired during customer participation in NPD.

Entrepreneurial leadership in startups and SMEs: Critical lessons from building and sustaining growth

Entrepreneurial leadership plays a pivotal role in the success of startups and small to medium-sized enterprises (SMEs) by guiding them through the turbulent waters of innovation, risk, and growth. This review explores the critical lessons learned from the experiences of entrepreneurial leaders in building and sustaining growth within these dynamic organizations. In today's competitive business landscape, startups and SMEs face unique challenges, including limited resources, intense competition, and rapid market changes. Effective entrepreneurial leadership entails a visionary mindset, a willingness to take calculated risks, and an ability to adapt to evolving circumstances. This review delves into the fundamental elements of entrepreneurial leadership, such as vision setting, innovation, adaptability, team building, and decision-making, which are essential for navigating the complexities of the startup and SME environment. Furthermore, the review examines strategies for building and sustaining growth, including scalability, financial management, marketing, customer acquisition, and strategic partnerships. Through case studies and practical examples, it illustrates how successful entrepreneurial leaders have implemented these strategies to overcome challenges and achieve sustainable growth. Despite their potential for success, startups and SMEs also face numerous challenges, including regulatory hurdles, technological disruptions, and globalization. By understanding these challenges and embracing emerging trends, entrepreneurial leaders can position their organizations for long-term success in an ever-changing business landscape. In conclusion, this review underscores the importance of entrepreneurial leadership in driving innovation and growth in startups and SMEs. By learning from past experiences and embracing the principles of entrepreneurial leadership, aspiring leaders can chart a course towards success in the dynamic world of entrepreneurship. Keywords: Entrepreneurial Leadership, Startups, SMEs, Sustaining Growth.

Mineral resource drivers in the global south: A case study of Australia

Mineral resource depletion directly restricts sustainable mineral development. This study investigates the drivers of sustainable mineral resource development via an evolutionary game model involving mineral firms, the Australian government, and financial institutions. The tripartite model provides a guide to strategies and interactions with external influences based on company liquidity. Leveraging panel data from Australian mining companies from 2015 to 2022, this study utilizes unconditional quantile regression techniques, culminating in three salient discoveries. First, despite financial limitations, small-to medium-sized enterprises (SMEs) can accumulate ample resources to enhance their green technology R&D and corporate social responsibility (CSR) expenditure through diverse financing methods, thereby creating an internal strategic impetus for CSR perpetuation. Second, by participating in CSR, mineral firms can transmit positive signals in an asymmetric market, which promotes their sustainable development. Finally, despite the Australian government's R&D tax refund policy incentivizing R&D investment, SMEs' lack of innovative capacity has led to the diversion of operational funds, which negatively impacts their sustainable development. These findings provide valuable insights for sustainable mineral resource development that extend beyond Australia to other Southern Hemisphere nations.

Exploring the perception of small and medium food enterprises in Lincolnshire, UK on the use of front‐of‐pack nutrition labels by consumers

SummaryThe food and drink industry is the UK's largest manufacturing sector, and small to medium‐sized enterprises (SMEs) play a key role in the UK's food system. This study investigates food‐providing SMEs' knowledge of nutrition labels and perceptions of the use of front‐of‐pack nutrition labels in making informed and healthy food choices by consumers. The SMEs were based in Lincolnshire, UK, and comprised food manufacturers (75%), food retailers (14%) and food service providers (11%) (n = 35). A 25‐item questionnaire was developed and validated to collect responses. The questionnaire link was disseminated by email and completed online. Comparisons were made between competing answers using Cochran's Q tests, each with post‐hoc pairwise McNemar test comparisons. Confidence intervals were computed using ordinal regressions. More than half of the SMEs' products (58%) had UK traffic light (TL) colour‐coded schemes and % Guideline Daily Amounts (GDAs). The SMEs stated that the TL label was the best format that provided ‘at‐a‐glance’ information, and this was significantly higher than %GDA and interpretative text (Ps < 0.003). Nearly 49% of the SMEs were unaware of the front‐of‐pack labels being not mandatory in the United Kingdom. Many (86%) acknowledged that the nutrition information on food products was helpful or very helpful for consumers in making purchasing decisions. The SMEs seemed to place the costs of implementing FOP labels on food products above their helpfulness in making healthier food decisions by consumers. This research is one of the first to investigate the perceptions of SMEs on how consumers utilise nutrition labels when making healthier food choices in the United Kingdom. Government subsidies on the costs incurred by incorporating TL labelling on the products are necessary in order to have front of pack (FOP) labels mandatory in the United Kingdom. Greater food industry involvement in academic and policy‐related research is essential to creating a healthier and more sustainable food environment.

The Innovative Entrepreneurial Marketing Journey and Sustainable Development of Southeast Asian Immigrants

The southeast Asian new immigrants face significant barriers in employment due to language and cultural differences, making it challenging for them to find jobs. Consequently, many southeast Asian immigrants have turned to entrepreneurship as a means to achieve economic independence and contribute to their family’s income. This study adopts entrepreneurial marketing (EM) as a theoretical lens and utilizes a process research methodology, based on sequentially ordered events, to explore the entrepreneurial journey of immigrant micro and small to medium-sized enterprises (SMEs). Employing purposive sampling, twenty-two southeast Asian immigrant entrepreneurs were selected for in-depth interviews to ensure data quality through multiple data collection methods. The research developed a dynamic adjustment model and management mechanisms for the entrepreneurial marketing of immigrant micro and SMEs. These findings not only bridge theoretical gaps in immigrant entrepreneurship strategy but also deepen the academic understanding of the dynamism in entrepreneurial marketing. Practically, the outcomes assist immigrant micro and small business entrepreneurs in developing operational strategies and serve as a reference for governmental units in crafting immigrant policies.

Assessing Competitive Strategies in UK Manufacturing SMEs

In this comprehensive study, we delve into an exhaustive examination of effective competitive strategies tailored for small to medium-sized enterprises (SMEs). The principal objective of this research centers on scrutinizing the strategic orientation of UK Manufacturing SMEs. Conducting an extensive literature review, we critically evaluated Porter's framework and identified several gaps in its applicability. Notably, critiques assert that the model inadequately captures the intricate nature of strategic behavior within real organizations and fails to provide a fully accurate representation of strategy-performance relationships. Empirical research further highlights the model's limitations, indicating its inability to facilitate the desirable combination of competitive strategies by firms. To address the outlined objectives, we employed a semi-structured questionnaire in our investigation. The ensuing analysis involved the application of factor and cluster analysis to identify strategic variables currently employed by SMEs in the manufacturing domain. Our data analysis revealed a divergence from the adoption of Porter's single generic strategies. Instead, the findings supported the utilization of mixed strategies that integrate elements from both differentiation and low-cost strategies. Significantly, these hybrid approaches were found to be associated with enhanced firm performance. This study contributes valuable insights into the nuanced landscape of competitive strategies within the UK SMEs, shedding light on the dynamic interplay between strategic choices and firm performance.

The perspective of managers on integrating HR practices to increase organizational performance in SME firms: An analysis of the interaction effect

Purpose: The aim of this paper is to clarify the human resource management (HRM) literature in small-to-medium-sized enterprises (SMEs) by empirically identifying possible combinations of HRM practices from the perspective of managers, and analyzing the relationships among them and with organizational performance in order to identify which combinations are most effective.Design/Methodology/Approach: Using the AMO (Ability- Motivation-Opportunity) framework, we ask whether there are significant interactions between AMO-based HRM bundles and, if so, to what degree and by what means they influence organizational performance. To explore this question, we tested a theoretical model using Partial Least Squares-Structural Equation Modeling (PLS-SEM) techniques and compared the interaction and main effects. The research sample comprises SMEs operating in the Basque Region of Spain.Findings: The study confirms the existence of hierarchies among bundles. The practices most strongly related to the SMEs’ performance lie in the bundle of motivation-enhancing practices. The results indicate that motivation-enhancing practices have a positive effect on organizational performance and when they are combined with ability-enhancing practices this effect grows.Research limitations/implications: The cross-sectional nature of the data means that it is not possible to establish clear causal relationships among the variables studied. It would therefore be beneficial in the future to use longitudinal designs and examine cause-effect over time, as well as use samples from other geographic locations.Practical Implications: High-performance HRM practices in the three Ability-Motivation-Opportunity (AMO) dimensions should not automatically be assumed to be complementary in an SME context, as many managers believe. Our results suggest that managers would be well advised to adopt motivational practices, combining them with training, to improve SMEs’ performance.Originality / value: This is one of the few studies to focus on testing the interaction effects among dimensions of Ability-Motivation-Opportunity-enhancing-practices on SMEs’ organizational performance, as observed by managers. It will encourage SME managers to consider more carefully the possible combinations of AMO dimensions and to focus on those combinations most likely to have positive effects.

SUFFICIENCY OF HUMAN CAPITAL IN SME: EVOLUTION OF SUSTAINABLE COMPETITIVE ADVANTAGE

Objective: This research aimed to explore the concept of sustainable competitive advantage concept in small medium-sized enterprise (SME) with collaborative capability and entrepreneur resilience as a mediating variable. It examined the relationship between human capital owned by entrepreneurs and sustainable competitive advantage with a focus on the woven sector, one of the largest tourism-supporting sectors in Bali. Method: entrprenereurs of SMEs in Bali, Indonesia completed 333 surveys, with each construct measured using an adopted and modified scale from existing studies. Additional analyses were performed on the collected data using partial least square structural equation modelling (PLS_SEM) software. These analyses included regression, factor analysis, structural equation modelling with the boostrapping technique, reliability, validity, mediation and model fit indicates. Result: The results showed that the human capital of the entrepreneurs, which consisted of education and experience, cannot be a source of sustainable competitive advantage in SME due to low education levels and minimal experience in managing businesses. On the other hand, collaborative capability is one of capabilities needed to achieve sustainable competitive advantage because it helps overcome resource limitations and internal capability by collaborating with external parties. Furthermore, another dynamic capability needed is entrepreneur resilience which can help in dealing with environmental turbulence. This research further supports this assertion by showing a full mediation relationship, implying that the human capital of entrepreneurs is insufficient for SME to attain sustainable competitive advantage, necessitating collaborative capability and entrepreneur resilience as a mediating factor to achieve this objective.

Strategic Agility, Exaptation, and Business Model Innovation: The Case of an SME

This study adopts a process view on business model innovation (BMI) to address multiple issues pertaining to theory and practice. First, BMI is challenging for most firms in part due to resource constraints that impose limitations on activities for opportunity identification and resource acquisition. To overcome these constraints, exaptation has recently been proposed by scholars as a way to innovate business models through the utilization of existing resources in new domains. However, research to date on exaptation in the context of BMI is limited with inadequate attention to the conditions that lead to exaptation. Second, in line with this research gap, scholars call for further process studies on BMI to explore the role of and the interdependencies among the antecedents in different contexts. To resolve these issues, this article investigates how strategic agility, an established organizational antecedent in the literature, leads to BMI through exaptation with a qualitative, in-depth, single-case study on an small to medium-sized enterprise (SME). The findings of this study are threefold. First, the BMI process in the case unfolds in line with the stages of exaptation proposed in the literature. Second, the relationship between the underlying elements of strategic agility (SA) and BMI is highly complex and at times reciprocal, with SA and BMI switching roles in the causal relationship along the process. Third, strategic sensitivity and resource fluidity, two of the three metacapabilities underlying SA, in combination trigger exaptation, which leads to BMI. Therefore, this study proposes strategic agility as an enabling capability for exaptation.