The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities
Abstract
:1. Introduction
2. Theoretical Background and Hypotheses Development
2.1. Relationship between Entrepreneurial Business Network (EBN) and Sustainable Performance of Firms
2.2. Role of Dynamic Capabilities (DCs) of Firms—Mediator
2.3. Model of a Proposed Research Study
3. Research Methods
3.1. Research Instruments
3.2. Designing a Questionnaire
3.3. Size of the Targeted Population Sample
3.4. Data Processing of the Questionnaire’s Feedback
3.5. Sample and Procedures
4. Analysis and Results
4.1. Descriptive Statistics of Latent Constructs
4.2. PLS Analyses
4.3. Measurement Model’s Evaluation
4.4. Structural Model’s Assessment
5. Discussion
6. Implications
7. Conclusions
8. Limitations and Future Research
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A
(1) Entrepreneurial Supplier interaction | |
1. | Our firm, builds partnership with suppliers and share creative ideas quite often. |
2. | Our, firm often interacts with suppliers to stimulate innovative product ideas. |
3. | Our-firm-often-interacts-with-suppliers-to-develop-new-innovative-products. |
4. | Our-firm-often-interacts-and-cooperates-with-suppliers-to-test-new-innovative-products. |
(2) Entrepreneurial Customer Interaction | |
1. | Our-firm-builds-partnership-with-customers-and-share-creative-ideas-quite-often. |
2. | Our-firm-often-interacts-with-customers-to-stimulate-innovative-product-ideas. |
3. | Our-firm-often-interacts-with-customers-to-develop-new-innovative-products |
4. | Our-firm-often-interacts-and-cooperates-with-customers-to-test-new-innovative-products. |
(3) Entrepreneurial Competitor Interaction | |
1. | Our-firm-builds-partnership-with-competitors-and-share-creative-ideas-quite-often. |
2. | Our-firm-often-interacts-with-competitors-to-stimulate-innovative-product-ideas. |
3. | Our-firm-often-interacts-with-competitors-to-develop-new-innovative-products. |
4. | Our-firm-often-interacts-and-cooperates-with-competitors-to-test-new-innovative-products. |
(4) Dynamic Capabilities | |
(4) Sensing Capability | |
1. | We-frequently-scan-the-environment-to-identify-new-business-opportunities. |
2. | We-periodically-review-the-likely-effect-of-changes-in-our-business-environment-on-customers. |
3. | We-often-review-our-product-development-efforts-to-ensure-they-are-in-line-with-what-customers-want. |
4. | We-spend-a-great-deal-of-time-implementing-ideas-for-new-product-and-improving-our-existing product |
(5) Learning Capability | |
1. | We-have-effective-routines-to-identify-to-value-and-to-import-new-information-and-knowledge. |
2. | We-have-appropriate-routines-to-assimilate-new-information-and-knowledge. |
3. | We-are-effective-in-transforming-existing-information-into-new-knowledge. |
4. | We-are-effective-in-utilizing-knowledge-in-new-product. |
5. | We-are-effective-in-developing-new-knowledge-that-has-the-potential-to-influence-product-development. |
(6) Integrating Capability | |
1. | Our-Employees-individual-contributions-are-channeled-through-their-work-group. |
2. | Members-of-our-firm-have-a-global-understanding-of-each-other’s-tasks-and-responsibilities. |
3. | We-are-fully-aware-of-who-in-the-firm-has-specialized-skills-and-knowledge-relevant-to job |
4. | We-carefully-interrelate-actions-between-members-of-the-firm-to-face-changing-conditions. |
5. | Members-of-our-firm-manage-to-successfully-interconnect-their-activities. |
(7) Alliance Management Capability | |
1. | Actively monitor the business environment to identify partnering opportunities procedure. |
2. | Actively monitor the business environment to identify partnering opportunities |
3. | Regularly gather information about prospective partners from various forums (e.g., trade-shows, industry conventions, databases, publications, internet, etc.) |
4. | Alert to market developments that create potential alliance opportunities. |
5. | Activities across different alliances are well-coordinated |
6. | Systematic coordination of organizational strategies across different alliances |
7. | Specific processes to systematically transfer knowledge across alliance partners. |
8. | Periodic reviews of its alliances to understand what it is doing right and where it is going wrong. |
9. | Periodically collect and analyze field experiences from its alliances. |
(8) Reconfiguration Capability | |
1. | Clear human resource re-allocation procedure. |
2. | Fast organizational response to market changes |
3. | Fast organizational response to competitor’s actions. |
4. | Efficient and effective communication with the cooperative organization |
(9) Coordinating Capability | |
1. | We ensure that the output of each employee’s work is synchronized with that of the rest of group. |
2. | We ensure appropriate allocation of resources (e.g., information, time, reports). |
3. | Employees are assigned to tasks commensurate with their relevant knowledge and skills. |
4. | We ensure that employees’ expertise is compatible with the work processes they are assigned to |
5. | Overall, our employees are well. |
(10) Small Firm Performance | |
1. | Profit goals have been achieved |
2. | Sales goals have been achieved |
3. | Return on Investment (ROI) goals have been achieved |
4. | Our product (s) have a higher quality than those of our competitors. |
5. | We have a higher customer retention rate than our competitors. |
6. | We have a better reputation among major customer segments than our competitors. |
7. | We have a lower employee turnover rate than that of our competitors. |
8. | We have been more effective in new product development than our competitors. |
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Description | Respondents Profile | |
---|---|---|
Age | Number | Percentage |
21–30 | 20 | 6.8% |
31–40 | 31 | 10.5% |
41–50 | 114 | 38.5% |
54–60 | 95 | 32% |
60 above | 36 | 12.2% |
Marital Status | ||
Single | 32 | 10.8% |
Married | 254 | 85.8% |
Separated | 10 | 3.4% |
Position/Status | ||
Owner | 266 | 89.9% |
Manager | 25 | 8.4% |
Other | 5 | 1.7% |
Education | ||
HSSC | 66 | 22.3% |
Diploma | 57 | 19.3% |
Degree | 97 | 32.6% |
Postgraduate | 70 | 23.6% |
Other | 6 | 2.0% |
Firm Age | ||
Less than 1 year | 11 | 3.7% |
1–5 years | 15 | 5.1% |
6–10 years | 26 | 8.8% |
11–15 years | 51 | 17.2% |
16 above | 193 | 65.2% |
Construct Values | Means (M) | Std. Deviation (SD) | Skewness | Kurtosis |
---|---|---|---|---|
EBN | 3.8035 | 0.55094 | −0.603 | 2.073 |
DC | 3.7655 | 0.53580 | −0.107 | −0.225 |
SFP | 4.1360 | 0.57819 | −0.543 | 0.527 |
Construct | Second-Order | Items | Loading | Cronbach’s Alpha | CR | AVE |
---|---|---|---|---|---|---|
ESI | ESI1 | 0.666 | 0.840 | 0.895 | 0.683 | |
ESI2 | 0.834 | |||||
ESI3 | 0.890 | |||||
ESI4 | 0.897 | |||||
ECI | ECI1 | 0.846 | 0.861 | 0.905 | 0.706 | |
ECI2 | 0.859 | |||||
ECI3 | 0.806 | |||||
ECI4 | 0.849 | |||||
EPI | EPI1 | 0.610 | 0.721 | 0.829 | 0.550 | |
EPI2 | 0.814 | |||||
EPI3 | 0.762 | |||||
EPI4 | 0.767 | |||||
EBN | ESI | 0.939 | 0.914 | 0.922 | 0.798 | |
ECI | 0.919 | |||||
EPI | 0.818 | |||||
SNC | SNC1 | 0.752 | 0.799 | 0.870 | 0.626 | |
SNC2 | 0.858 | |||||
SNC3 | 0.761 | |||||
SNC4 | 0.789 | |||||
LNC | LNC1 | 0.618 | 0.721 | 0.827 | 0.546 | |
LNC2 | 0.754 | |||||
LNC3 | 0.751 | |||||
LNC4 | 0.819 | |||||
IC | IC2 | 0.597 | 0.700 | 0.817 | 0.534 | |
IC3 | 0.615 | |||||
IC4 | 0.805 | |||||
IC5 | 0.868 | |||||
AMC | AMC1 | 0.748 | 0.812 | 0.865 | 0.516 | |
AMC2 | 0.731 | |||||
AMC3 | 0.775 | |||||
AMC4 | 0.681 | |||||
AMC5 | 0.687 | |||||
AMC6 | 0.683 | |||||
RFC | RFC1 | 0.779 | 0.800 | 0.870 | 0.626 | |
RFC2 | 0.799 | |||||
RFC3 | 0.846 | |||||
RFC4 | 0.738 | |||||
CC | CC1 | 0.717 | 0.723 | 0.828 | 0.546 | |
CC3 | 0.713 | |||||
CC4 | 0.768 | |||||
CC5 | 0.756 | |||||
DC | SNC | 0.859 | 0.862 | 0.898 | 0.598 | |
LNC | 0.849 | |||||
IC | 0.673 | |||||
AMC | 0.662 | |||||
RFC | 0.827 | |||||
CC | 0.744 | |||||
SFP | SFP1 | 0.649 | 0.835 | 0.876 | 0.503 | |
SFP2 | 0.733 | |||||
SFP4 | 0.787 | |||||
SFP5 | 0.719 | |||||
SFP6 | 0.745 | |||||
SFP7 | 0.629 | |||||
SFP8 | 0.687 |
Constructs | 1 | 2 | 3 |
---|---|---|---|
DC | - | ||
EBN | 0.1676 | - | |
SFP | 0.6153 | 0.1223 | - |
Hypothesis | Relationship | Std. Beta | Std. Error | t-Value | p-Values | Decision |
---|---|---|---|---|---|---|
H1 | EBN -> SFP | 0.0232 | 0.0302 | 0.7698 | 0.2209 | Not-supported |
H2 | EBN -> DC | 0.1161 | 0.0518 | 2.2442 | 0.0126 | Supported |
H3 | DC -> SFP | 0.5546 | 0.0426 | 13.027 | 0.0000 | Supported |
H4 | EBN -> DC -> SFP | 0.0644 | 0.0307 | 2.0995 | 0.0181 | Supported |
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Abbas, J.; Raza, S.; Nurunnabi, M.; Minai, M.S.; Bano, S. The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities. Sustainability 2019, 11, 3006. https://doi.org/10.3390/su11113006
Abbas J, Raza S, Nurunnabi M, Minai MS, Bano S. The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities. Sustainability. 2019; 11(11):3006. https://doi.org/10.3390/su11113006
Chicago/Turabian StyleAbbas, Jaffar, Saqlain Raza, Mohammad Nurunnabi, Mohd Sobri Minai, and Shaher Bano. 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities" Sustainability 11, no. 11: 3006. https://doi.org/10.3390/su11113006
APA StyleAbbas, J., Raza, S., Nurunnabi, M., Minai, M. S., & Bano, S. (2019). The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities. Sustainability, 11(11), 3006. https://doi.org/10.3390/su11113006