Organization-stakeholder relationship and performance of Iranian SMEs

Abstract

<jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs).</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Practical implications</jats:title> <jats:p>This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.</jats:p> </jats:sec>

The implication of Innovation, Proactivity, Risk Taking, Artistic Orientation, and Financial Literacy on Creative Economy Business Performance During the Pandemic

“…According to the data processing results, it was shown that innovation does not have a significant implication on business performance. These results are not in line with (Hallak et al, 2018), (Linton, 2019), (Jalali et al, 2020), (Riassy & Kristinae, 2021). The findings showed that when a pandemic occurs, business conditions experience uncertainty, therefore the market does not consider innovation in making purchasing decisions.…”

“…This means the entrepreneurs' courage in taking risks will implication business performance. This study showed risk-taking has a significant implication on business performance, which is related to (Linton, 2019), (Jalali et al, 2020), (Soininen & Puumalainen, 2012). According to the data processing results, it was shown that innovation does not have a significant implication on business performance.…”

“…This condition has an impact on the business world, both large, medium, and small scale enterprises. Therefore, to maintain continuity, medium, and small businesses should adapt to facing a pandemic through crisis or risk management (Jalali et al, 2020), (Gunarto et al, 2020), (Petrov & Petrova, 2021) (Supriyanto et al, 2021). Also, pandemic situations will cause a business crisis, which will threaten the enterprise, and consequently lead to a decline in performance, or even bankruptcy.…”

“…The ability to take risks and innovations greatly determine the performance achievement of small and medium enterprises (S. H. Lee et al, 2016), (Jalali et al, 2020). Entrepreneurs will confront uncertain conditions, therefore they should be able to identify and calculate the possibility of not achieving their goals.…”

“…When a business faces a crisis, an entrepreneur should have the courage to take risks. They need to be proactive and innovative to improve their business performances (B. R. Lee et al, 2018), (Jalali et al, 2020). Therefore, performance achievement in a pandemic period is determined by the entrepreneur's ability to innovate and the courage to take risks.…”