| _version_ | 1866902151117144064 |
|---|---|
| author | Wasim, Muhammad |
| author_facet | Wasim, Muhammad |
| contents | <p>The Small and Medium-sized Enterprises (SMEs) are enormously vital in an economy<br>as they are highest in the numbers of businesses (OECD, 2017a), major sector for<br>economic growth, a key source of employment, innovation, technological development<br>(Ahmad et al., 2017), and enhance industrialisation (Majama and Magang, 2017).<br>SMEs contribution to employment is the largest as compared to other business sectors<br>(Ayyagari et al., 2011). A total of 99.7% of firms are SMEs in OECD countries (OECD,<br>2017a) and 99.3% in Scotland (The Scottish government, 2020).<br>Building on the resource-based view theory, this study identified that three key<br>organisational orientations; entrepreneurial orientation (EO), learning orientation (LO)<br>and market orientation (MO) positively affect SMEs performance (Khan et al., 2020;<br>Morgan and Anokhin, 2020; Lonial and Carter, 2015; Wang, 2008). Since, SMEs have<br>limited access to financial resources (Brouthers, Nakos and Dimitratos, 2015), their<br>level of access to financial resources may influences these relationships. Therefore, a<br>gap has been identified to investigate the moderating effects of financial resources on<br>the direct relationships between three organisational orientations and Scottish SMEs<br>performance.<br>To test the relationships, this study adopted a survey strategy and quantitative data<br>collection method in a cross-sectional time horizon, underpinning positivism research<br>paradigm. Established measurement scales were utilised to develop the survey<br>questionnaire instrument and 7-point Likert scale items were used to obtain the<br>responses. A total of 322 responses were obtained from Scottish SMEs; 78 were<br>collected online (internet-mediated access approach) and 244 were obtained by<br>approaching firms personally (traditional access approach), yielding a response rate<br>of 21.38%. A total of 313 (20.78%) responses were found usable.<br>The data were analysed into four stages, including data screening, exploratory factor<br>analysis (EFA), confirmatory factor analysis (CFA) and the analysis of structural path<br>model using Structural Equation Modeling (SEM) technique. The findings supported<br>all the direct effect relationships but none of the moderating effects relationships. The<br>study contributed to the field of organisational orientations and financial resources<br>underlying the resources-based view in two ways. First, the study contributed to the theory by confirming that entrepreneurial orientation, learning orientation, market<br>orientations and financial resources all have a significant direct and positive effect on<br>SMEs performance. Second, the study contributed to theory by extending the theory<br>through testing the moderating effects of financial resources, in which it was found that<br>financial resources do not enhance the effects of any of the organisational orientations<br>on SMEs performance.<br>This study guide CEOs/Owners/Managers to develop all three organisational<br>orientations and preference must be given to EO followed by MO and LO. They must<br>also enhance their access to financial capital and improve their financial literacy to<br>allocate resources prudently.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17281314 |
| institution | Zenodo |
| language | eng |
| publishDate | 2021 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | The relationships between organisational orientations, financial resources and Scottish SMEs performance Wasim, Muhammad <p>The Small and Medium-sized Enterprises (SMEs) are enormously vital in an economy<br>as they are highest in the numbers of businesses (OECD, 2017a), major sector for<br>economic growth, a key source of employment, innovation, technological development<br>(Ahmad et al., 2017), and enhance industrialisation (Majama and Magang, 2017).<br>SMEs contribution to employment is the largest as compared to other business sectors<br>(Ayyagari et al., 2011). A total of 99.7% of firms are SMEs in OECD countries (OECD,<br>2017a) and 99.3% in Scotland (The Scottish government, 2020).<br>Building on the resource-based view theory, this study identified that three key<br>organisational orientations; entrepreneurial orientation (EO), learning orientation (LO)<br>and market orientation (MO) positively affect SMEs performance (Khan et al., 2020;<br>Morgan and Anokhin, 2020; Lonial and Carter, 2015; Wang, 2008). Since, SMEs have<br>limited access to financial resources (Brouthers, Nakos and Dimitratos, 2015), their<br>level of access to financial resources may influences these relationships. Therefore, a<br>gap has been identified to investigate the moderating effects of financial resources on<br>the direct relationships between three organisational orientations and Scottish SMEs<br>performance.<br>To test the relationships, this study adopted a survey strategy and quantitative data<br>collection method in a cross-sectional time horizon, underpinning positivism research<br>paradigm. Established measurement scales were utilised to develop the survey<br>questionnaire instrument and 7-point Likert scale items were used to obtain the<br>responses. A total of 322 responses were obtained from Scottish SMEs; 78 were<br>collected online (internet-mediated access approach) and 244 were obtained by<br>approaching firms personally (traditional access approach), yielding a response rate<br>of 21.38%. A total of 313 (20.78%) responses were found usable.<br>The data were analysed into four stages, including data screening, exploratory factor<br>analysis (EFA), confirmatory factor analysis (CFA) and the analysis of structural path<br>model using Structural Equation Modeling (SEM) technique. The findings supported<br>all the direct effect relationships but none of the moderating effects relationships. The<br>study contributed to the field of organisational orientations and financial resources<br>underlying the resources-based view in two ways. First, the study contributed to the theory by confirming that entrepreneurial orientation, learning orientation, market<br>orientations and financial resources all have a significant direct and positive effect on<br>SMEs performance. Second, the study contributed to theory by extending the theory<br>through testing the moderating effects of financial resources, in which it was found that<br>financial resources do not enhance the effects of any of the organisational orientations<br>on SMEs performance.<br>This study guide CEOs/Owners/Managers to develop all three organisational<br>orientations and preference must be given to EO followed by MO and LO. They must<br>also enhance their access to financial capital and improve their financial literacy to<br>allocate resources prudently.</p> |
| title | The relationships between organisational orientations, financial resources and Scottish SMEs performance |
| url | https://doi.org/10.5281/zenodo.17281314 |