PurposeThis study aims to examine the joint effect of entrepreneurial orientation (EO), market orientation (MO), total quality management (TQM) and organisational performance in the Kingdom of Saudi Arabia’s (KSA's) small and medium enterprise (SME) sector.Design/methodology/approachThis paper used a quantitative research design. A total of 393 questionnaires were distributed to and collected from owners/managers of SMEs in KSA to acquire requisite data for examining the hypothesised model of the study. Partial least squares structural equation modelling was used to analyse the research data.FindingsThe results indicate that EO, MO and TQM are positively and significantly related to the organisational performance of SMEs. In addition, the findings reveal that TQM has contributed the most to the enhancement of organisational development, which is followed by EO and finally, MO.Practical implicationsDeveloping economies consider SMEs as an approach to generate new jobs and enhance economic growth. The results provide owners/managers, practitioners and academicians with an enhanced understanding of the relationship and effects of EO, MO and TQM on organisational performance, particularly in the SME sector. Thus, owners/managers are guided to develop improved and further effective decisions for the implementation of TQM practices with strong EO and MO. Consequently, firms realise superior performance and continuously compete within their market.Originality/valueFrom the perspective of developing countries, this study contributes to the existing literature by providing empirical evidence regarding the effects of EO, MO, TQM and SMEs' performance. This study is the first to empirically examine the SME sector within the KSA's economy regarding the new orientation among decision makers in terms of increasing the significance of non-oil activities. This study also confirms the usability of resource-based view theory and strategic orientations variables in the KSA SMEs.
Purpose The purpose of this paper is to empirically test the association between total quality management (TQM) and small and medium enterprises’ (SMEs) performance. In particular, it examines whether organizational culture (OC) has a mediating effect on the TQM–SME performance relationship. Design/methodology/approach The conceptual model for this study was developed based on the literature review of TQM, OC and SME performance. As the research framework, a self-administered questionnaire was used to collect data from managers/owners of SMEs in the Riyadh, Mecca and Eastern regions of the Kingdom of Saudi Arabia. The instrument was evaluated for its validity and reliability. A structural equation model was designed to examine the relationships, using PLS 3.0. Findings Statistical outcomes add to the literature through displaying a positive direct effect of TQM and OC on SMEs’ performance, and a significant and positive indirect effect of TQM on SMEs’ performance through OC. Research limitations/implications The quantitative cross-sectional research design investigated a sample of manufacturing SMEs. Future research could use qualitative techniques or a case study approach for further information analysis. Practical implications The findings of this research provide insights into SMEs’ owners/managers in today’s dynamic manufacturing environment, focussing on TQM as a mechanism for improving their performance. The results can help SMEs by providing guidance on OC, because of its effect on the successful implementation of TQM, therefore improving the level of performance. Originality/value The research extends the literature of TQM with a comprehensive understanding of TQM from the perspective of SMEs in Saudi Arabia. It fills the gap in empirical studies that investigate the joint effect of TQM and OC on SMEs’ performance. This paper highlights the theoretical contribution and managerial implications as well as making recommendations for future research.
Purpose Although literature indicated that business social responsibility (BSR) is now a common practice and accepted norm among business enterprises globally, the concept is not well understood and its influence on business performance is contradictory. Therefore, based on the stakeholder theory, the purpose of this paper is to examine the association among trust of BSR and the performance of small-scale industries in Nigeria with organizational culture as a moderating factor. Design/methodology/approach The hypotheses of the study were tested using personally administered survey questionnaires; the study obtained 486 valid questionnaires, which were evaluated using SmartPLS Algorithm and bootstrapping functions. Findings The research findings were established using SmartPLS Algorithm and bootstrapping functions. According to the results, the research constructs have a satisfactory convergent and discriminant validity. Equally, the overall model has a very high predictive relevance. In addition, the results showed that all the predicting variables explained 40 percent variance in the criterion variable. Thus, the study established strong positive influence of trust of BSR on the small-scale industrial performance. Correspondingly, the study established a strong positive impact of organizational culture on the performance of the small-scale industries. However, the study could not establish the moderating influence of organizational culture on the constructs. Research limitations/implications The study used perceptions of owner/managers and only small-scale industries. Practical implications The research findings may be found beneficial to policy makers and academics, particularly in understanding trust of social responsibility, its influence on performance of small-scale industries and fit between organizational culture and strategic direction of a business enterprise. Originality/value The study offers some meaningful contribution to knowledge on BSR by exploring the mechanisms connecting trust of BSR with performance. Also, research expert in the field of BSR usually explores the advantage of these findings by utilizing the action of BSR on internal and external stakeholders.
In the contemporary, Entrepreneurial orientation and Market orientation have become important topics among business academics and practitioners. Since business environment has become more competitive, the need to develop and improve internal resources is now a prerequisite for global survival; entrepreneurial orientation and market orientation are now the crucial falcons that are assisting the firms to achieve such a niche. Despite the importance of MO and EO, researches that link these concepts to SMEs performance are very limited. In this view, through extensive literature view, this study has found a theoretical link that exists between entrepreneurial orientation, market orientation and performance of SMEs and also developed conceptual model for empirical validations. This study serves not only to clarify the relationship between entrepreneurial orientation, market orientation and SMEs performance, it also explains the role which TQM plays as a mediator in this relationship which most studies have neglected. Again, the conceptual model also examines the moderation role of the organizational culture in the relationship between TQM and SMEs performance.
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