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        The Impact of Strategic Orientation on Performance of Retail SMEs by Structural Equation Model Evaluations

        Mohd Noor Mohd Shariff,Jauriyah Shamsuddin,Mohd Nizam Abdul Kadir 대한산업공학회 2019 Industrial Engineeering & Management Systems Vol.18 No.3

        Overcoming challenging circumstances in a dynamic environment requires markets to have superior performance compared to their rivals. In order to achieve superior performance, this study analyzed two strategic orientation variables which might influence a retail firm performance - market orientation (MO) and entrepreneurial orientation (EO). It also examined the effect of Volatile Environment (VE) as a moderator for both direct affiliations towards the performance. Quantitative data were gathered from the 152 owner-managers of retail firms within the scope of Small and medium-sized enterprises (SMEs) in Malaysia. Dataset were processed for validity and reliability using SPSS and the multivariate regression performed using Smart PLS software. Four hypotheses were postulated and tested through structural equation model evaluations. The results indicated VE strongly moderated the relationship between MO and firm performance (FP). However, there was no significant moderating effect on the relationship between EO and performance. For direct effect relationship, the results revealed that MO had positive significant influence on FP. In contrast, EO had no significant effect on the retail firm performance.

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        The Moderating Role of Environmental Turbulence between Learning Orientation and SME Performance in the Manufacturing Sector of Pakistan

        Ali SAJJAD,Yusnidah IBRAHIM,Jauriyah SHAMSUDDIN 한국유통과학회 2022 유통과학연구 Vol.20 No.5

        Purpose: This study attempts to investigate the moderating effects of environmental turbulence (ET) between learning orientation (LO) and SMEs' performance. Research design, data, and Methodology: To gain insights and provide implications for manufacturing SMEs in Pakistan, this study adopted simple random sampling to collect 379 valid responses. Data were collected through a self-administrative questionnaire from manufacturing SMEs owners/managers. Partial least squares of structural equation modeling have been used to test research hypotheses by using SmartPLS® 3.0 software. Results: The study's primary finding is that LO has a significantly positive effect on SMEs' performance and this relationship is strengthened under the moderating influence of environmental turbulence (ET). Conclusion: Environmental turbulence (ET) enables SMEs to focus on learning capability to get a more competitive advantage. Moreover, SMEs owner/managers ought to emphasize continuous learning that accentuates the capability to compete with environmental changes. Findings support notifying Pakistan’s Small and Medium Enterprise Development Authority (SMEDA) in dealings with Manufacturing SMEs in terms of improving their internal capabilities. This research contributes to the literature as it provides a more detailed and in-depth explanation of distribution management-related issues faced by SMEs. This research carries a significant influence on literature and relevant Resource-based view and contingency theories.

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