Determinants of SMEs Performance in Pakistan: A Pilot Study
DOI:
https://doi.org/10.48165/sajssh.2021.2113Keywords:
SME Pakistan, Performance, Pilot testAbstract
This study's main objective is to investigate the face validity and reliability of the determinants of SMEs' performance in Pakistan. For this purpose, researchers adopted a simple random sampling approach to collect a small data sample from the Owners/managers of 41 individual manufacturing SMEs. The model suggested four factors (PDI, PCI, OLC, TO) as the determinants of SMEs performance. Therefore, the instruments' reliability and validity were keenly examined with experts from academia and industry. Moreover, collected data were processed and analysed by using SPSS. However, the results of the study established the face validity and reliability of the adapted instruments.
References
Abouzeedan, A. (2011). SME performance and its relationship to innovation. Linköping University Electronic Press.
Ahmad, I., & Ahmad, S. (2018). Multiple Skills and Medium Enterprises’ Performance in Punjab Pakistan: A Pilot Study. The Journal of Social Sciences Research, Special(4), 44-49.
Ahmed, A., Abouzeedan, A., Klofsten, M., & Hedner, T. (2012). Implementing the SIV model on an intensively innovation‐oriented firm: the case of Autoadapt AB. World Journal of Entrepreneurship, Management and Sustainable Development.
Akram M.W. (2015). Business constraints and growth potential of small and medium enterprises (SMEs) ( Doctoral dissertation University of Sargodha, Sargodha
Alegre, J., & Chiva, R. (2013). Linking entrepreneurial orientation and firm performance: The role of organizational learning capability and innovation performance. Journal of Small Business Management, 51(4), 491-507.
Altinay, L., Madanoglu, M., De Vita, G., Arasli, H., & Ekinci, Y. (2016). The interface between organizational learning capability, entrepreneurial orientation, and SME growth. Journal of Small Business Management, 54(3), 871-891.
Aminu, M. I., Mahmood, R., & Muharram, F. M. (2015). The Intangible Resources and Small Firms' Multilevel Performance: A Partial Least Squares Approach. Asian Social Science, 11(16), 187.
Antony, J. P., & Bhattacharyya, S. (2010). Measuring organizational performance and organizational excellence of SMEs-Part 2: An empirical study on SMEs in India. Measuring business excellence, 14(3), 42-52.
Avermaete, T., Viaene, J., Morgan, E. J., Pitts, E., Crawford, N., & Mahon, D. (2004). Determinants of product and process innovation in small food manufacturing firms. Trends in food science & technology, 15(10), 474-483.
Bello Rogo, H., Mohd Shariff, M. N. and Hafeez, M. H. (2018). Investigating the Effect of Entrepreneurship Development on the Relationship between Market Orientation, Total Quality Management and SMEs Performance in Kano. International Journal of Supply Chain Management, 7(2): 107- 15.
Bhatnagar, J. (2006). Measuring organizational learning capability in Indian managers and establishing firm performance linkage: An empirical analysis. The Learning Organization, 13(5), 416-433.
Camps, J., Oltra, V., Aldás‐Manzano, J., Buenaventura‐Vera, G., & Torres‐Carballo, F. (2016). Individual performance in turbulent environments: the role of organizational learning capability and employee flexibility. Human Resource Management, 55(3), 363-383.
Chandler, G. N., & Hanks, S. H. (1993). Measuring the performance of emerging businesses: A validation study. Journal of business venturing, 8(5), 391-408.
Chennell, A., Dransfield, S., Field, J., Fisher, N., Saunders, I., & Shaw, D. (2000). OPM: a system for organisational performance measurement. Paper presented at the Proceedings of the performance measurement–past, present and future conference, Cambridge.
Cohen, W. M., & Malerba, F. (2001). Is the tendency to variation a chief cause of progress? Industrial and Corporate Change, 10(3), 587-608.
Cooper, A. C. (1993). Challenges in predicting new firm performance. Journal of business venturing, 8(3), 241-253.
Dunk, A. S. (2011). Product innovation, budgetary control, and the financial performance of firms. The British Accounting Review, 43(2), 102-111.
Eggert, A., Hogreve, J., Ulaga, W., & Muenkhoff, E. (2011). Industrial services, product innovations, and firm profitability: A multiple-group latent growth curve analysis. Industrial Marketing Management, 40(5), 661-670.
Ettlie, J. E., & Reza, E. M. (1992). Organizational integration and process innovation. Academy of management journal, 35(4), 795-827.
Foo, G., & Friedman, D. J. (1992). Variability and capability: The foundation of competitive operations performance. AT&T Technical Journal, 71(4), 2-9.
Gardiner, P., & Whiting, P. (1997). Success factors in learning organizations: an empirical study. Industrial and Commercial Training, 29(2), 41-48.
Gatignon, H., & Xuereb, J.-M. (1997). Strategic orientation of the firm and new product performance. Journal of marketing research, 34(1), 77-90.
Goh, S., & Richards, G. (1997). Benchmarking the learning capability of organizations. European Management Journal, 15(5), 575-583.
Gomes, C. F., & Yasin, M. M. (2011). A systematic benchmarking perspective on performance management of global small to medium-sized organizations: An implementation-based approach. Benchmarking: An International Journal, 18(4), 543-562.
Group, W. B. (2013). Doing business 2014, Understanding regulations for small and medium size enterprises. World Bank Publications. 11.
Gulshan, B. (2016). Lack of Financial Access as a Growth Constraint to Small and Medium Enterprises in Pakistan.
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676.
Gupta, A. K. (1987). SBU strategies, corporate-SBU relations, and SBU effectiveness in strategy implementation. Academy of management journal, 30(3), 477-500.
Hafeez, M. H. (2014). Moderating effects of organizational learning capability on the relationship between innovation, branding and SMEs performance in sports industry of Pakistan. Universiti Utara Malaysia.
Hafeez, M. H., Shariff, M. N. M., & bin Mad Lazim, H. (2012). Relationship between Entrepreneurial Orientation, Firm Resources, SME Branding and Firm’s Performance: Is Innovation the Missing Link? American Journal of Industrial and Business Management, 2(04), 153.
Hafeez, M. H., Shariff, M. N. M., & bin Mad Lazim, H. (2013). Does Innovation and Relational Learning Influence SME Performance? An Empirical Evidence from Pakistan. Asian Social Science, 9(15), p204.
Hair, J. F. (2007). Research methods for business.
Hair Jr., J. F., Black, J. W., Babin, B. J., & Anderson, E. R. (2010). Multivariate Data Analysis (Seventh Ed., pp. 1–758). Edinburgh: Pearson Education Limited.
Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link? The Journal of marketing, 30-45.
Hanif, A., & Manarvi, I. A. (2009). Influence of quality, innovation and new product/services design on small and medium enterprises. Paper presented at the Proceedings of the World Congress on Engineering, London, UK.
Ibrahim, M. A., & Shariff, M. N. M. (2016). Mediating role of access to finance on the relationship between strategic orientation attributes and SMEs performance in Nigeria. International Journal of Business and Society, 17(3).
Jerez‐Gómez, P., Céspedes‐Lorente, J., & Valle‐Cabrera, R. (2007). Organizational learning and compensation strategies: Evidence from the Spanish chemical industry. Global Business and Organizational Excellence, 26(3), 51-72.
Karabulut, A. T. (2015). Effects of innovation types on performance of manufacturing firms in Turkey. Procedia-Social and Behavioral Sciences, 195, 1355-1364.
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J., & Hassan Md. Isa, A. (2015). Intellectual capital in small and medium enterprises in Pakistan. Journal of Intellectual Capital, 16(1), 224-238.
Khalique, M., Isa, A. H. B. M., & Nassir Shaari, J. A. (2011). Challenges for Pakistani SMEs in a knowledge-based economy. Indus Journal of Management & Social Sciences, 5(2).
Khalique, M., Isa, A. H. B. M., Shaari, N., & Abdul, J. (2011). Challenges for Pakistani SMEs in a knowledge-based economy. Indus Journal of Management & Social Sciences, 5(2).
Khan, M. W. J., & Khalique, M. (2014). An Overview of Small and Medium Enterprises in Malaysia and Pakistan: Past, Present and Future Scenario. Business and Management Horizons, 2(2), 38.
Khawaja, S. (2006). Unleashing the Potential of the SME Sector with a Focus on Productivity Improvements. Paper presented at the Pakistan Development Forum.
Kirchhoff, B. A., & Phillips, B. D. (1988). The effect of firm formation and growth on job creation in the United States. Journal of business venturing, 3(4), 261-272.
Kofman, F., & Senge, P. M. (1993). Communities of commitment: The heart of learning organizations. Organizational dynamics, 22(2), 5-23.
Laitinen, E. K., Länsiluoto, A., & Salonen, S. (2016). Interactive budgeting, product innovation, and firm performance: empirical evidence from Finnish firms. Journal of Management Control, 1-30.
Li, H., & Atuahene-Gima, K. (2001). Product innovation strategy and the performance of new technology ventures in China. Academy of management journal, 44(6), 1123-1134.
Lin, C. (1998). Success factors of small-and medium-sized enterprises in Taiwan: An analysis of cases. Journal of Small Business Management, 36(4), 43-56.
Mallén, F., Chiva, R., Alegre, J., & Guinot, J. (2016). Organicity and performance in excellent HRM organizations: the importance of organizational learning capability. Review of Managerial Science, 10(3), 463-485.
Manual, O. (2005). Guidelines for Collecting and Interpreting Innovation Data (3rd ed.). Paris: Joint Publication of the OECD and the Statistical Office of the European Communities.
Moullin, M. (2007). Performance measurement definitions: Linking performance measurement and organisational excellence. International journal of health care quality assurance, 20(3), 181-183.
Murphy, G. B., & Callaway, S. K. (2004). Doing well and happy about it? Explaining variance in entrepreneurs' stated satisfaction with performance. New England Journal of Entrepreneurship, 7(2), 15.
Olson, E. M., Walker Jr, O. C., & Ruekert, R. W. (1995). Organizing for effective new product development: The moderating role of product innovativeness. The Journal of marketing, 48-62.
Oslo, M. (2005). Guidelines for collecting and interpreting innovation data: Paris: OECD Publishing.
Un, C. A., Cuervo‐Cazurra, A., & Asakawa, K. (2010). R&D collaborations and product innovation. Journal of Product Innovation Management, 27(5), 673-689.
Penrose, E. T. (2009). The Theory of the Growth of the Firm: Oxford university press.
Polder, M., Leeuwen, G. v., Mohnen, P., & Raymond, W. (2010). Product, process and organizational innovation: drivers, complementarity and productivity effects. CIRANO Scientific Publications 2010s-28.
Reichstein, T., & Salter, A. (2006). Investigating the sources of process innovation among UK manufacturing firms. Industrial and Corporate change, 15(4), 653-682.
Rivas, A. A. A., Quyen, P. T. P., & Rivas, J. L. A. (2017). ANTECEDENTS OF EXISTING AND NEW PRODUCTS SELLING: A JOB DEMANDS-RESOURCES (JD-R) CONCEPTUAL MODEL. Paper presented at the 13th Annual International Bata Conference for Ph. D. Students and Young Researchers.
Salman, R., Arshad, D., & Bakar, L. J. A. (2016). Factors contributing to SMEs innovative culture in Punjab, Pakistan: a pilot study. International Journal of Academic Research in Business and Social Sciences, 6(8), 54-64.
Sandberg, K. W. (2003). An exploratory study of women in micro enterprises: Gender-related differences. Journal of small business and enterprise development, 10(4), 408-417.
Sandvik, I. L., & Sandvik, K. (2003). The impact of market orientation on product innovativeness and business performance. International journal of Research in Marketing, 20(4), 355-376.
Santos-Vijande, M. L., López-Sánchez, J. Á., & Trespalacios, J. A. (2012). How organizational learning affects a firm's flexibility, competitive strategy, and performance. Journal of business research, 65(8), 1079-1089.
Sekaran, U. and Bougie, R. (2010). Research methods for business, A skill building approach. John Wiley & Sons Ltd: United Kindom.
Sekaran, U. and Bougie, R. (2011). Business research methods, A skill-building approach. McGraw-Hill: New York.
Sekaran, U. and Bougie, R. (2016). Research methods for business, A skill building approach. John Wiley & Sons.
Senge, P. M. (1990). The Fifth Discipline: the art and purpose of the learning organization: New York: Doubleday/Currency.
Shah, M. H., bin Othman, A. R., & bin Mansor, M. N. (2016). Determinants of small business Performance in Punjab Pakistan: A Pilot Study. ASIAN JOURNAL OF MULTIDISCIPLINARY STUDIES, 4(8).
Sinkula, J. M. (1994). Market information processing and organizational learning. The Journal of marketing, 35-45.
SMEDA. (2017). What is SME Defination
Subhan, Q. A., Mehmood, M. R., & Sattar, A. (2013). Innovation in Small and Medium Enterprises (SME’s) and its impact on Economic Development in Pakistan. Paper presented at the Proceedings of 6th International Business and Social Sciences Research Conference.
Taherdoost, H. (2016). Validity and reliability of the research instrument; how to test the validation of a questionnaire/survey in a research. How to test the validation of a questionnaire/survey in a research (August 10, 2016).
Tajeddini, K. (2016). Financial Orientation, Product Innovation and Firm Performance: An Empirical Study in the Japanese SMEs. International Journal of Innovation and Technology Management, 1640005.
Tariq, T. A., Mad Lazim, H., & Iteng, R. (2019). The moderating effect of technology orientation on the relationship between product innovation, process innovation, organizational learning capability and SME’s performance. Asian Journal of Multidisciplinary Studies, 7(9), 24-35.
Tseng, S.-M., & Lee, P.-S. (2014). The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2), 158-179.
Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: Product innovation, service business model innovation, and their impact on performance. Journal of Product Innovation Management, 33(1), 36-52.
Weiss, P. (2003). Adoption of product and process innovations in differentiated markets: The impact of competition. Review of Industrial Organization, 23(3-4), 301-314.
Wolniak, R. (2014). Relationships between selected lean management tools and innovations. Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika Śląska (75), 157-166.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 South Asian Journal of Social Science and Humanities
This work is licensed under a Creative Commons Attribution 4.0 International License.