Sustainable Competitive Advantage Through Market And Entrepreneurial Orientation In Indonesian Retail MSMEs During The COVID-19 Recovery Stage

This study aims to measure the impact of Entrepreneurial and Market Orientation on the Sustainable Competitive Advantage of Micro, Small, and Medium Enterprises in Indonesia during the recovery phase of the COVID-19 Pandemic. The aim of this research is to find solutions to understand the factors of the survival problems of small businesses facing the uncertainty of novelty during and after the Coronavirus outbreak. Using data obtained from the contribution of the questionnaire that was responded to by 335 individuals involved in MSMEs, we calculated the effect of EO and MO on SCA using Structural Equational Modeling, Partial Less Square. The findings show that EO strongly influences MO and SCA, while the relationship between MO and SCA is weaker. © 2022 IEEE.

How environmental hostility, entrepreneurial orientation and dynamic capabilities are manifested to influence above-average export performance during the COVID-19 pandemic

PurposeThis study analyses how latent variables: environmental hostility, entrepreneurial orientation and dynamic capabilities are demonstrated in practice during the COVID-19 pandemic. Coming from mixed-method research, which is an explanatory sequential research design;this paper aims to provide only the qualitative, practical manifestations and validations of the variables previously tested and analysed quantitatively.Design/methodology/approachA case study approach was used whereby open-ended, semi-structured series of interviews was conducted to extract narratives from two owner–managers of medium-scale manufacturer-exporter agro-processing firms in the Philippines. Thematic analysis using deductive reasoning was used to analyse the collected narratives.FindingsThe analysis showed qualitative evidence of a possible intervention of entrepreneurial orientation and dynamic capabilities between the effects of the hostile environment brought about by the pandemic on the firms' export performance. In addition, organisational resilience was observed to possibly moderate the relationship between the firm's entrepreneurial orientation and dynamic capabilities. Resilience takes time (years) to develop;with an entrepreneurial behaviour, a continuous enhancement and acquisition of resources, capabilities, knowledge reflects a robust and adaptive organisation during adversity.Social implicationsThe role of education and research institutions was highlighted in the development of dynamic capabilities of firms. The entrepreneurial resilience, however, reflects the individual characteristic of the owner–managers that manifests in the firm's overall posture toward the overall goal of protecting the industry from its downfall.Originality/valueQualitative evidences composed of direct experiences from key informants served valuable and contextual (Philippine agro-processing industry) validations to the theoretical relationships of variables being analysed.

The Moderation Role of Entrepreneurial Orientation on the Influence of Innovation on Pharmaceutical SMEs' Performance

Due to the importance of entrepreneurship and innovation in the Pharmaceutical industry, the current study investigates the moderation role of Entrepreneurial Orientation (EO) on the influence of innovation on Pharmaceutical SMEs performance in Jordan. The current research was conducted on Jordanian pharmaceutical SMEs including manufacturers, distributors, and pharmacies with employee numbers of less than 100. The research design was quantitative, descriptive, causal, and cross-sectional held by an online questionnaire tool targeted all employees, managers, and Chief Executive Officers (CEOs) in pharmaceutical SMEs. Using the AMOS software, the Structural Equation Model (SEM) was adopted to analyze a sample of 162 surveys and examine the hypotheses. The outcome of this study indicated that the research model variables can explain 69.4% of the variance of SMEs' performance. Additionally, it confirmed that innovation has a significant positive impact on pharmaceutical SMEs, and Entrepreneurial Orientation moderates the influence of innovation on pharmaceutical SMEs' Performance. Furthermore, current research findings contribute to extending existing relevant knowledge about the innovation impact and moderating role of Entrepreneurial Orientation on pharmaceutical SMEs' performance in Jordan and understanding the relationship between these variables to be of significant guidance to managing entrepreneurship in emerging economies. Further, the results show SMEs' methods and directions to follow during crises, such as COVID-19, to maintain business performance and sustainability. The current research paper contributes to the present literature since very limited studies investigated the innovation impact on SMEs' performance. Moreover, previous studies did not sufficiently analyze the impact of management, product, and process dimensions of innovation on SMEs' performance with the contribution of EO.

Tourism entrepreneurship in rural destinations: measuring the effects of capital configurations using the fsQCA approach

PurposeThe purpose of this study was to investigate the causal configuration effect of the determinants of tourism entrepreneurship in rural tourism destinations based on the capital framework.Design/methodology/approachThe data for this research were collected from a sample comprising 140 rural enterprise owners in China and analyzed via fuzzy-set qualitative comparative analysis.FindingsAll the investigated capital factors were relevant to tourism entrepreneurship, although they only facilitated tourism entrepreneurship when combined. It was observed here that four capital configurations promoted tourism entrepreneurship in rural destinations, highlighting the multiple paths toward rural tourism entrepreneurship. The human and physical capitals of entrepreneurs were key to tourism entrepreneurship.Practical implicationsIt is relevant for entrepreneurs and managers to realize that there are multiple strategies for promoting tourism entrepreneurship in rural destinations. The four capital configurations revealed here offer guidelines for evaluating the potential and possibility of rural tourism entrepreneurship. Local managers and governments must prioritize human and physical capitals when the venture capital and resources are limited.Originality/valueFirst, the findings of this study deepened the understanding of the factors influencing tourism entrepreneurship using the capital framework. Second, it revealed that capital configurations determined tourism entrepreneurship and that existence and interactions of the various forms of capital affect rural entrepreneurship. Third, this study revealed that the success of tourism entrepreneurship depends on the entrepreneur's ability to combine the various forms of capital and resources.

Innovation and internationalisation during times of economic growth, crisis, and recovery prior to Covid-19: A configurational approach comparing Spanish manufacturing family and non-family firms

Based primarily on the Resource-Based View and prior evidence, this study gauges the potential differences in innovative behaviour between international family firms and non-family firms when conditions change drastically in the business environment (i.e. from a situation of economic growth to one of downturn, and then to recovery). The research setting is a large sample of Spanish manufacturing firms between 2007 and 2016 (i.e. pre-Covid-19). During this period (2009-2013), the global economic and financial crisis affected Spain. Thus, three sub-periods are distinguished in the empirical analysis: growth, crisis, and recovery. Using Qualitative Comparative Analysis, our findings show that the paths of innovation activities that promote internationalisation via exporting in family and non-family firms are somewhat dissimilar in each sub-period, supporting the argument that the causal effect of innovation on internationalisation is heavily dependent on environmental conditions. Compared to non-family firms, our results show that when family firms internationalise, they follow a wide variety and more stable number of paths in innovation activities. Our findings also provide additional evidence to support the argument of heterogeneity among family firms.

What was the impact of business performance on MSMEs during the COVID-19 pandemic?

The COVID-19 pandemic has caused changes in the pattern of interactions between people and has also had an impact on market traders in Indonesia. The purpose of this research is to increase the competitiveness of MSMEs through entrepreneurial orientation, market orientation and technology orientation toward product innovation and their impact on MSMEs' business performance. This study uses the partial least squares structural equation modeling (PLS-SEM), and convenience sampling was used to select 160 MSMEs for the study sample. Based on the path coefficients that lead to business performance, technology orientation has a value of 16.1, followed by product innovation with a value of 10.6, market orientation with a value of 0.009, and entrepreneurship orientation with a value of 0.004, which have a positive effect on business performance. But if you look at what influences product innovation, the first is technology orientation at 0.357, followed by market orientation at 0.325, and entrepreneurial orientation at 0.245. This means that technology orientation is vital in improving business performance and product innovation. © 2023 AESS Publications. All Rights Reserved.

The influence of entrepreneurial culture and organizational learning on entrepreneurial orientation: the case of new technology-based firms in Iran

PurposeThis paper explores how entrepreneurial culture (EC) and organizational learning (OL) determine the entrepreneurial orientation (EO) of new technology-based firms (NTBFs). These NTBFs are located in Isfahan Science and Technology Town (ISTT), Iran. These entities face substantial challenges in a highly-sanctioned economy, which makes adopting, acquiring or transferring new technologies daunting.Design/methodology/approachThis paper analyzes a sample of 200 NTBFs. The participants were trained chief executive officers and observed by applying pre-test and post-test designs. As a final step, empirical data were collected using questionnaires and analyzed accordingly. The structural equation modeling (SEM) with the partial least squares (PLS) approach was used by the SmartPLS2 software.Findings OL was found to mediate the relationship between EC and EO in the studied NTBFs. Additionally, the indirect effect of EC on EO and the direct impact of OL on EO were significant (=1.96). Therefore, this study focuses on selected NTBFs within Iran's particular and distinctive context.Research limitations/implicationsThis study has several limitations. These were the time consuming nature, the lack of cooperation by managers and the COVID-19 pandemic-related challenges. Nonetheless, the findings offer several important implications for practitioners, scholars and policymakers.Originality/valueThe paper sought to explore how EC and OL determine EO in Iranian NTBFs. It, thus, investigates the case of a highly-sanctioned context during the coronavirus pandemic, which imposed several basic and technological limitations on their practices.

Bridging theory and practice in the humane entrepreneurship domain: insights from small and medium Italian enterprises

PurposeHumane entrepreneurship (HumEnt) has been theoretically proposed as a new model of entrepreneurship supporting the idea of an enlarged entrepreneurial strategic posture. The aim of paper is to frame humane entrepreneurial orientation's (HEO) characteristics by showing how firms apply the HumEnt approach, and to offer suggestions to build an HEO measurement scale.Design/methodology/approachThe study adopts a case study approach, focusing on five Italian small and medium enterprises (SMEs).FindingsThe study (1) identifies which are the characteristics of HEO strategic posture in the enterprises under examination;(2) shows that entrepreneurs' personal values and credos are fundamental to having an HEO strategic posture adopted;(3) provides indications on the development of a measurement scale through a discussion of emerging HEO themes.Originality/valueThe value of the study is that emerging themes of HEO strategic posture was derived from the analysis of five Italian SMEs. Entrepreneur's personal values have been proven to be relevant in the implementation of HEO. Based on the emerging HEO themes, the study contributes to the literature opening the way toward the building of an all-encompassing HEO measurement scale.

Playing the wild cards: Antecedents of family firm resilience

The purpose of this study is to explore how family firms respond to wild cards. We aim to capture the under-standing of family firm owners/managers of what wild cards are in terms of frequency, kind, and impact. We also examine how familiness and entrepreneurial orientation form the resilience and survival of family firms when facing wild cards. The scope of our attention is limited to extreme events so far overlooked in the family firm resilience literature, and the empirical context of our study involves the COVID-19 pandemic. Our findings show that the response to wild cards depends on the understanding of those extreme situations that family firms managers/owners develop. Deep time horizon is relevant in developing a useful understanding of wild cards, and generational involvement helps to socially construct it. After developing an understanding, family firm man-agers/owners use decision making preferences in selecting their response to wild cards. Our study offers a behavioral take on family firms resilience, and provides a fine grained view incorporating behavioral constructs.

The impact of organizational learning on Polish SME market performance

The main purpose of this paper is to analyze impact of organizational learning (OL) on Polish small- or medium-sized enterprise (SME) performance. Results are based on interviews with owners and managers from two samples of Polish small- and medium-sized firms: a "pre-COVID-19" sample (the survey was conducted during May-July 2019) and a "COVID-19" sample (the survey was conducted during December 2020-January 2021). The results based on the "pre-COVID-19" sample show partial support for the hypothesis about a positive relationship between market performance and OL for Polish SMEs. Two out of three measures of OL, i.e., the diversity of information sources and the commitment to learning, showed positive relationship with two aspects of market performance, i.e., the sales dynamics and the self-assessed success as compared with that of competitors. None of the OL measures have been correlated with the financial results. For the "COVID-19" sample, commitment to learning showed very weak positive correlations with both financial results and sales dynamics. These relationships were not confirmed when other firms' characteristics had been included.

The Effect of Entrepreneur's Fear of Failure on Firm's Entrepreneurial Orientation

This study focuses on the fear of failure (FF) in entrepreneurship and its effect on the entrepreneurial orientation (EO) as a strategic orientation in firms. There has been much research on EO as a predictor of organizations' performance since it is considered a manifestation of the entrepreneurial direction inside the organization. Yet, the research on the relationships between individual-level variables and EO itself still has room for contribution, especially the internal aspects related to the entrepreneur or the manager. Therefore, this research aims to explore FF in entrepreneurship and its inhibiting and motivating roles. In addition, given that the firm is the unit of analysis in this study, this research explained how an entrepreneur's FF affects the EO of the firm amidst the COVID-19 outbreak. The study administered a quantitative research design using a structured questionnaire. The results showed a positive influence of the entrepreneur's fear of failure on the firm's entrepreneurial orientation manifested in the firm's innovativeness dimension. However, the other two dimensions that contribute to the firm's EO representation (proactiveness & risk-taking) showed insignificant relationships with the entrepreneur's FF. © 2022, Academic Conferences and Publishing International Limited. All right reserved.

THE EFFECT OF CORPORATE FRUGALITY ON CRISIS PREPAREDNESS: THE MEDIATING ROLE OF ENTREPRENEURIAL ORIENTATION

This study explores relationships between Corporate Frugality (CF), Entrepreneurial Orientation (EO) and Crisis Preparedness (CP). CP was proposed as the surrogate measure for firm performance during actual crises. EO is also examined as a potential mediator in the CF-CP association. The hypotheses were tested using partial least squares structural equation modeling with data collected from randomly selected small businesses operating in the Tripolitania region of northwestern Libya during the current economic instability caused by civil unrest. Further, COVID-19 pandemic cases had significantly risen among the population at the time of the study. The findings show that CF can be instrumental in responding to market crisis requirements, while innovativeness only results in better CP and partially mediates the CF-CP association. These findings validate the CF construct, but entrepreneurs must cautiously proceed when exercising EO in response to crises. Furthermore, the study casts new light on how the association between EO dimensions and performance can differ across contexts. Building on the resource-based view and pecking order theory and integrating them with contingency theory, this study is the first to explore the effect of EO and its dimensions as the mediator between CF and CP. © 2023 World Scientific Publishing Company.

The effects of digital innovations and sustainable supply chain management on business competitive performance post-COVID-19

Purpose: Sustainable supply chain management (SSCM) practices and green entrepreneurial preference (GEP) have gained increasing attention from academicians;however, their impacts on business' competitive performance (BCP) post-coronavirus disease of 2019 (COVID-19) remain unclear. Although SSCM is vital for supporting BCP, the previous publications indicate the absence of significant relationships among GEP, SSCM and BCP. This study tries to fill this literature gap by investigating if GEP and SSCM can shape BCP. This study also suggests the moderation effect of digital innovations such as artificial intelligence and big data analytics (AIBD) on those relationships from a COVID-19 viewpoint. Design/methodology/approach: Data were collected from 245 Halal food firms in Yemen, and the research framework was assessed using structural equation modeling (SEM). Findings: The empirical findings show that there are significant impacts of GEP on SSCM and subsequently on BCP. The findings also reveal that SSCM practice mediates GEP-BCP link. Besides, digital innovations such as AIBD positively moderate the link of GEP-SSCM. Originality/value: This study is the first attempt that advises Halal food firms to formally adopt GEP, SSCM and digital innovations to boost BCP, especially in uncertain times like post-COVID-19. Unlike earlier studies that observe SSCM usage as a direct predictor of firm performance, this study delivers an innovative insight that digital innovations can assist in GEP and SSCM incorporation in the in-house operations of the firms post-COVID-19. © 2023, Emerald Publishing Limited.

Realizing supply chain agility under time pressure: Ad hoc supply chains during the COVID‐19 pandemic

When the COVID‐19 pandemic began in 2020, the medical product industry faced an unusual demand shock for personal protective equipment (PPE), including face masks, face shields, disinfectants, and gowns. Companies from various industries responded to the urgent need for these potentially life‐saving products by adopting ad hoc supply chains in an exceptionally short time: They found new suppliers, developed the products, ramped‐up production, and distributed to new customers within weeks or even days. We define these supply chains as ad hoc supply chains that are built for a specific need, an immediate need, and a time‐limited need. By leveraging a unique sampling, we examined how companies realize supply chain agility when building ad hoc supply chains. We develop an emergent theoretical model that proposes dynamic capabilities to enable companies building ad hoc supply chains in response to a specific need, moderated by an entrepreneurial orientation allowing firms to leverage dynamic capabilities at short notice and a temporary orientation that increases a company's focus on exploiting the short‐term opportunity of ad hoc supply chains.

Crisis response strategies and entrepreneurial orientation of SMEs: A configurational analysis on performance impacts

This study attempts to identify the roles of different coping strategies (pivoting and persevering) and entrepreneurial orientation that could interact and affect SMEs' financial performance in the context of a sudden and pervasive external crisis. For this purpose, we applied asymmetric configurational theorizing and methods. The fuzzy-set qualitative comparative analysis was applied to a dataset combining survey results and financial reports of 201 Finnish SMEs. Our analysis showed that, as a response to the COVID-19 crisis, it was more common to apply pivoting than the perseverance strategy. Entrepreneurial orientation was positively related to pivoting, growth, and subjective performance but not related to profitability. Firms that had faced more problems tended to apply the perseverance strategy, and their financial performance was weaker. We also found combinations of factors that led to poor performance as non-entrepreneurial firms that faced major problems consistently performed poorly despite the coping strategies employed. In conclusion, we argue that different types of coping strategies are powerful and effective in different intensities of crises experienced by SMEs, but it is critical to match the correct coping strategy with the firm's strategic orientation. © 2023, The Author(s).

Has COVID-19 pushed digitalisation in SMEs? The role of entrepreneurial orientation

PurposeThe authors' aim is to investigate if entrepreneurial orientation (EO) has a role in interpreting an external crisis, such as COVID-19, as an opportunity for investing in digital transformation.Design/methodology/approachThe authors undertook multiple case study research on the digital transformation of seven "Made in Italy” SMEs and proposed a conceptual framework that sees an external stimulus (e.g. the pandemic) as a driver of the digitalisation, filtered by the entrepreneurial orientation of SMEs.FindingsThe authors' results show how EO deals with the changing environment and helps address the market opportunities related to digitalisation.Research limitations/implicationsThis study contributes to the existing literature on EO and digital transformation of SMEs, creating a new model for forthcoming studies on this topic. In addition, interesting insights are offered on the role of EO to promote the introduction of digital transformation in SMEs operating in the "Made in Italy” sectors.Practical implicationsThis study shows the role of EO as a reactive characteristic during a crisis. Thus, the authors' suggestion to SMEs is to develop their EO as a part of the strategic orientation. In addition, this work encourages policymakers to invest in the promotion of specific interventions aimed at supporting entrepreneurs in enhancing their capacity to effectively manage digital transformation.Originality/valueIdentifying the most important triggers of digitalisation in times of crisis remains an underexplored area of research. Thus, this study adds value to both digital transformation and entrepreneurial orientation topics.

Review on entrepreneurial orientation, economic stimulus packages, differentiation strategy and SME performance in Malaysia during the COVID-19 pandemic

PurposeThe study aims to establish and conceptualise entrepreneurial orientation (EO) as a key construct that positively influences small and medium-sized enterprises (SMEs) performance. In this paper, a conceptual framework was developed, and three research propositions were outlined: EO (innovativeness, proactiveness and risk-taking) positively influences SME performance;the economic stimulus packages moderate EO and the differentiation strategy;and the differentiation strategy mediates EO and SME performance. Each of the constructs was defined, and the conditions during the COVID-19 pandemic in Malaysia were identified.Design/methodology/approachThe paper suggests links between EO and SME performance and the effects of economic stimulus packages and differentiation strategies on Malaysia's service and manufacturing industry. These concepts lead to the development of propositions based on prior empirical studies underpinning the resource-based view theory and contingency approach. The propositions aim to develop further findings and test the hypotheses.FindingsThe study proposes three research propositions to conceptualise the relationship between the four main constructs. The study also recommends an empirical approach to conduct and test the research model concerning Malaysia's service and manufacturing industry.Originality/valueWhile studies on EO and SME performance have been conducted extensively, studies on the impact of various economic stimulus packages by the Malaysian government on the existing EO and SME performance relationship during the COVID-19 pandemic are limited. Separately, this study uses a configuration approach to test the mediator and moderator during the COVID-19 pandemic.

Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries

The beneficial relationship of entrepreneurial orientation with performance has been extensively acknowledged in the literature. However, empirical evidence is not straightforward and requires consideration of the interplay of different variables, context, and rationales through which this causal complexity of the performance-enhancing mechanism of entrepreneurial orientation influences firm performance. In this paper we examine the way the entrepreneurial behavior of the organization unfolds and affects performance through specific configurations resulting from the simultaneous interaction of strategic networking and dynamic environment in the setting of Southeast European SMEs. We apply hierarchical regression to a sample of 963 small and medium-sized enterprises. Empirical findings provide support for applying the configurational approach and show that companies of high entrepreneurial orientation and high strategic networking operating in a dynamic environment achieve the highest effect on a business performance. Research results further indicate that strategic networking is a mechanism that achieves the greatest efficiency in a dynamic environment and with the presence of a firm's entrepreneurial orientation. According to the research results, implications for research and practice are suggested.

Public policy responses to COVID-19 and the survival of ethnic minority businesses (EMBs): does entrepreneurial orientation (EO) matter?

PurposeThe global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the public policy responses. This paper investigates whether EMBs' entrepreneurial orientation (EO) mediates the impact of public policy responses to COVID-19 on their survival.Design/methodology/approachUtilizing institutional theory, the authors developed a novel conceptual framework that divides policy responses to COVID-19 into aggressive (imposing restrictions on movement, e.g. lockdowns) and less aggressive policy responses (not imposing restrictions on movement, e.g. social distancing). The authors then surveyed intra-regional EMBs, specifically businesses owned by ethnic minorities in the Kano and Katsina provinces of Nigeria, and analysed the data using structural equation modelling and analysis of variance (ANOVA).FindingsThe authors found that intra-regional EMBs in developing countries are very vulnerable to the public policy responses imposed by governments to curb COVID-19. Aggressive policy responses have a more significant negative effect on the survival of intra-regional EMBs than their less aggressive counterparts. Furthermore, the authors found that EO as a crisis response strategy significantly supports intra-regional EMBs in managing their vulnerability to the hostile institutional environment, reduces the adverse effect of public policy responses and stimulates their survival during the COVID-19 pandemic.Originality/valueThis paper contributes to the institutional theory of small and medium-sized enterprises (SMEs)/entrepreneurship and the literature on EMBs by showing the role of EO in mediating the effects of COVID-19 institutional policies on the survival of intra-regional EMBs.

Entrepreneurial Performance: Determinants of Performance in Stimulus-Oriented Granting

Local governments consistently face challenges of economic depression and the unexpected events that precipitate them, such as COVID-19. The depressions leave governments taxed for resources, infrastructure, and time. These depressions are often helped by large infusions of federal grant dollars, otherwise known as stimulus-oriented granting. Key variables in determining success in spending these stimulus dollars include government structure and different forms of capacity. These are traditionally tested characteristics that governments already possess. What we know less about is how governments take advantage of these spending opportunities without regard to the resources that are under their control. This is referred to as entrepreneurial orientation. Using the American Recovery and Reinvestment Act (ARRA), this study tests the effect of entrepreneurial orientation, form of government, and capacity on local government spending of federal grant dollars, specifically in stimulus-oriented granting. This study has implications for other stimulus-oriented granting, such as the COVID-19-motivated, Coronavirus Aid, Relief and Economic Security Act (CARES).