In search of high-performance workplace factors among SMEs

Abstract

Purpose. Small and medium-sized enterprises (SMEs) are essential contributors to employment creation and global economic growth. For long-term survival in the market, SMEs need the capabilities to organise their resources in a way that leads to high performance and competitive advantage. Based on the conceptual framework of entrepreneurial orientation and the resourcebased view of the firm, performance-influencing organisational factors among SMEs providing manufacturing services are analysed. Methodology. In this study, the financial performance of 47 SMEs was analysed, and a survey of 499 employees was conducted. Financial performance was evaluated by ROA and ROS, and productivity was measured by turnover and net profit per employee to identify high-performance SMEs. Competitive aggressiveness was measured by changes in the market share to verify whether the high-performance group of SMEs corresponds to the entrepreneurial orientation construct. A questionnaire with a six-point Likert scale and the Mann–Whitney U test were used to test the hypotheses. Findings. The managerial capabilities to create strong workplace performance exist where: (a) management has a respectful attitude toward employees, (b) management supports the development of employees’ professional skills, (c) employees are provided with everything they need to achieve high job results, (d) employees want to work for the company in the long term, (e) remuneration to employees is fully in line with their level of professional skills, (f) co-workers perform their work effectively, (g) employees work shorter job shifts. These elements constitute the knowledge-based resources of high-performance SMEs, giving them, at a minimum, a temporary competitive advantage. Value. The findings of this article contribute to the literature on entrepreneurial orientation, supplementing the construct of organisational factors with the characteristics of managerial capabilities leading to high performance and competitive advantage. Keywords: entrepreneurial orientation, managerial capability, performance, forestry SMEs Paper category: research paper