Performance measurement by small and medium enterprises in Cape Metropolis, South Africa

Maduekwe, Caroline Chidinma; Kamala, Peter Nasiema

doi:10.21511/ppm.14(2).2016.05

Cited by 24 publications

(18 citation statements)

References 4 publications

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“…For instance, a study by Vermaak, Kirsten and Wolmarans (2015) found that accountants in SMEs tend to depend on financial ratios more than the highly acclaimed Balanced Scorecard when measuring performance. Other studies conducted in South African SMEs (Dubihlela & Sandada, 2014;Epoh & Mafini, 2018;Maduekwe & Kamala, 2016;Mafini & Muposhi, 2017) applied subjective measures to determine the performance of these businesses. In line with these studies, the current research also applies subjective measures to quantify the performance of SMEs.…”

Section: Business Performancementioning

confidence: 99%

Organisational agility, business best practices and the performance of small to medium enterprises in South Africa

Govuzela

Mafini

2019

SAJBM

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Background: Only one in 10 newly established business enterprises survives for longer than 10 years in the South African business environment. The primary reasons behind the demise of these small enterprises include the lack of access to financing, lack of financial and managerial skills, lack of expertise, as well as economic factors such as poor sales and weak growth prospects. The new norm in industrial markets is that business organisations must possess a remarkable amount of agility to survive and succeed. Success is important for South African small- and medium-sized enterprises (SMEs) given their significant contributions to the national economy.Objectives: This study investigated the connection between organisational agility, business best practices and the performance of SMEs in South Africa.Method: A quantitative approach using the cross-sectional survey research design was employed in which a structured questionnaire was administered to 564 randomly selected owner-managers of SMEs. Hypotheses were tested using the structural equation modelling procedure, which was conducted after implementing a confirmatory factor analysis to test the psychometric properties of the measurement scales.Results: Hypotheses tests indicated that the four business best practices, namely, technology capability, collaborative innovation, organisational learning and internal alignment, exerted a significant positive influence on organisational agility. Also, organisational agility exerted a significant positive influence on business performance.Conclusion: The study demonstrates that the performance of SMEs can be improved significantly through a proper alignment between the four business best practices considered in this study. Improving the level of organisational agility in SMEs is also important in stimulating their performance. The results of the study can be applied to assist SMEs to survive and flourish in turbulent and dynamic markets, where agile organisational abilities are a requirement for success.

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Section: Business Performancementioning

confidence: 99%

Organisational agility, business best practices and the performance of small to medium enterprises in South Africa

Govuzela

Mafini

2019

SAJBM

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“…Accordingly, the performance should be assessed from both financial and non-financial aspects. Financial performance for SMEs is usually evaluated through the following criteria: (i) growth in sales; (ii) growth in profits; and (iii) cash flow [26][27][28] . In addition, many enterprises also measure performance through non-financial indicators such as valued customer, employee conditions, and product/service development 27,29 .…”

Section: The Theoretical Framework For Performancementioning

confidence: 99%

Study on the impact of transformation leadership on performance of small and medium enterprises in Can Tho City, Vietnam

Dinh

Pham²,

Le³

et al. 2022

Sci. Tech.Dev. J. - Eco. Law Manag.

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Transformational leadership is understood as a leadership style that enhances a sense of collective benefits for members of an organization. This study aims to analyze the impact of transformational leadership on the performance of small and medium enterprises in Can Tho city, Vietnam. This research is based on the theory and the four components of Transformational Leadership Theory (TLT) (Idealized Influence - II; Inspirational Motivation - IM; Intellectual Stimulation - IS; Individualized Consideration - IC), a review of related studies, and opinions from expert interviews to develop a research model. The primary data of the article was collected from a survey of 214 small and medium enterprises in the city. The data analysis methods used in this study include Cronbach's alpha reliability test, confirmatory factor analysis (CFA), structural equation modeling (SEM), and multigroup structural analysis. The article's research results confirm that the leaders of enterprises with a transformational style play a significant and positive role in the spirit of learning and sharing knowledge of the organization members, especially the micro-enterprises face many difficulties due to the lack of resources. Research results also show that thanks to the transformational leadership (TL) style and organizational learning (OL), it has made an essential contribution to organizational innovation (OI) as well as to improving operational efficiency (both financial and non-financial performance) for small and medium enterprises in Can Tho city. Based on the article's research results, the authors have proposed some characteristics of transformational leaders in small and medium enterprises in the city. In particular, the study emphasizes the influence of the individualized consideration and idealized influence factors in improving learning ability, contributing to organizational renewal and improving performance for small and medium enterprises in Can Tho city.

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“…Besides, non-financial performance offers insight into the link between business activities with financial results that considerably impact business performance and competitiveness. For example, the degree of customer satisfaction could indicate future cash flow that would otherwise not be available (Maduekwe & Kamala, 2016).…”

Section: Organizational Performancementioning

confidence: 99%

The Nexus Between Learning Orientation, TQM Practices, Innovation Culture, and Organizational Performance of SMEs in Kuwait

Sawaean¹,

Ali

2021

IJIKM

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Aim/Purpose: This paper aimed to examine the impact of learning orientation on organizational performance of small and medium enterprises (SMEs) via the mediating role of total quality management (TQM) practices and the moderating role of innovation culture. Background: SMEs’ organizational performance in developing countries, particularly in Kuwait, remains below expectation due to increasing competition and inadequate managerial practices that negatively impact their performance. Although several studies had revealed a significant effect of learning orientation on SMEs’ performance, the direct impact of learning orientation on their performance is still unclear. Thus, the link between learning orientation and organizational performance remains inconclusive and requires further examination. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather the data in a specific period. The data were collected by distributing a survey questionnaire to the owners and Chief Executive Officers (CEOs) of Kuwaiti SMEs using online and on-hand instruments with 384 useable data obtained. Furthermore, the partial least square-structural equation modeling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: This study bridged the significant gap in the role of learning orientation on SMEs’ performance in developing countries, specifically Kuwait. In this sense, a conceptual model was introduced, comprising a learning orientation, TQM practices, innovation culture, and organizational performance. In addition, this study confirmed the significant influence of TQM practices and innovation culture as intermediate variables in strengthening the relationship between learning orientation and organizational performance, which has not yet been verified in Kuwait. Findings: The results in this study revealed that learning orientation had a significant impact on organizational performance of SMEs in Kuwait. It could be observed that TQM practices play an important role in mediating the relationship between learning orientation and performance of SMEs, as well as that innovation culture plays an important moderating role in the same relation. Recommendations for Practitioners: This study provided a framework for the decision-makers of SMEs on the significant impact of the antecedents that enhanced the level of organizational performance. Hence, owners/CEOs of SMEs should improve their awareness and knowledge of the importance of learning orientation, TQM practices, and innovation culture since it could significantly influence their performance to achieve success and sustainability when adopted and managed systematically. The CEOs should also consider building an innovation culture in the internal environment, which enables them to transform new knowledge and ideas into innovative methods and practices. Recommendation for Researchers: The results in this study highlighted the mediating effect of TQM practices on the relationship between learning orientation (the independent variable) and organizational performance (the dependent variable) of SMEs and the moderating effect of innovation culture in the same nexus. These relationships were not extensively addressed in SMEs and thus required further validation. Impact on Society: This study also influenced the management strategies and practices adopted by entrepreneurs and policymakers working in SMEs in developing countries, which is reflected in their development and the national economy. Future Research: Future studies should apply the conceptual framework of this study and assess it further in other sectors, including large firms in developing and developed countries, to generalize the results. Additionally, other mechanisms should be introduced as significant antecedents of SMEs’ performance, such as market orientation, technological orientation, and entrepreneurial orientation, which could function with learning orientation to influence organizational performance effectively.

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Performance measurement by small and medium enterprises in Cape Metropolis, South Africa

Cited by 24 publications

References 4 publications

Organisational agility, business best practices and the performance of small to medium enterprises in South Africa

Organisational agility, business best practices and the performance of small to medium enterprises in South Africa

Study on the impact of transformation leadership on performance of small and medium enterprises in Can Tho City, Vietnam

The Nexus Between Learning Orientation, TQM Practices, Innovation Culture, and Organizational Performance of SMEs in Kuwait

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