Entrepreneurial orientation and performance of SMEs in the services industry

Abstract

Purpose – The purpose of this paper is to examine both the sources of competitiveness of small and medium- sized enterprises (SMEs) in the services industry measured by their capability to grow, and the relative importance of each of these sources. More specifically, the resources and capabilities of Spanish SMEs in the services industry that may become sources of competitive advantage are analysed. Design/methodology/approach – In order to achieve this objective, this paper is organized as follows. First, a concise overview of prior research on determinants of performance of SMES is provided, outlining the role of factors regarding resources and capabilities. Second, a set of lineal regression models are performed to test the hypothesis research. In line with several previous studies, competitive success and performance of the company are approached through the recent evolution of firms in terms of employment, turnover and productive investment. The data set comes from a survey on Spanish SMEs operating in the services industry that was carried out between the end of 2010 and the beginning of 2011. Findings – The findings reveal that entrepreneur characteristics, firm features and managerial attributes have significant effect on the business performance. The results from the empirical analysis indicate that competitive success of the Spanish SMEs in the service industry is conditioned by macroeconomic and social factors related to the general business environment and especially by business factors concerning the entrepreneurial orientation of the firm, these findings are consistent with those of earlier research conducted at both an international level a national level. Originality/value – The fundamental contribution of SMEs to the overall performance of the economy constitutes a crucial motive for researchers to investigate and examine the key success factors behind these enterprises. This issue has been analysed exhaustively for the manufactured goods industry, but has scarcely been addressed for the services industry. Thus, further research is needed to clarify the variables explaining survival and success for services SMEs. Furthermore, since this research is focused on the microeconomic level, by considering the firm as the unit of analysis, it contributes towards complementing previous research on this topic that has been conducted from a macroeconomic approach. Thus it attempts to provide certain empirical evidences for support the traditional academic debate between economic and administrative disciplines concerning the appropriate unit of analysis for the understanding and explanation of businesses competitiveness.

Does Environmental Sustainability Impact Innovation, Ecological and Social Measures of Firm Performance of SMEs? Evidence from South Africa

“…Thus, the concept of environment and nature are frequently referred to when macro-environmental forces are considered in the current business environment. Rodríguez-Gutiérrez et al [6] point out that research into SMEs has increased in the previous decade due to the significant contribution of this business sector to the ultimate performance of the economy. The traditional assertion that large firms are the major contributors to the economy is being challenged as the role of SMEs in the contemporary business environments is becoming better understood [7].…”

Theorizing on entrepreneurial orientation in international business: A synthetic review

“…Rodríguez, Moreno, Tejada (2015) Empirical research conducted on data collected through survey from 1,122 Spanish SMEs during 2011 and early 2012. This paper analyses the source of competitiveness of SMEs in the service industry.…”

Social Sustainability Practices on Small Businesses in Developing Economies: A Case of South Africa

“…According to Ha-Brookshire [26] firm performance is a complex concept to define and the complexity of the definition is even more entrenched within the context of SMEs operations. Consistently, Rodríguez-Gutiérrez et al [24] argue that a vast difference found in firms is the main reason why the definition of business performance is challenging. Thus, there is a need to consider how firm performance can be assessed within the context of SMEs which have substantive differences contrasted with large businesses [8].…”

“…Firm performance constitutes the second construct in this study. Firm performance is not a new concept in the field of business research [24]. However, despite its prominence in latent literature, the construct of firm performance is challenged by incongruences pertaining to indicators being selected based on the researcher's convenience [25].…”

“…Consistently, latent research indicators have utilised either economic (profitability and productivity measures) financial or growth indicators [24]. Furthermore, within the sustainability spectrum, it is argued that there is a need to broaden the matrices utilised to measure firm performance [8,25].…”