Growth strategy as a mediator of the relationship between entrepreneurial competencies and the performance of SMEs

Endi Sarwoko

Abstract


Factors affecting the success of SMEs have been widely studied, but generally they only focus on the individual characteristics as a factor affecting the success of SMEs. This study attempts to analyze the role of the growth strategy in mediating the effect of entrepreneurial competencies on SMEs performance. The population consists of the 243 nurturing SMEs in Malang Regency, in which the sample was taken using proportional sampling techniques, and it was totaled 146 SMEs. They were collected by using questionnaires and interviews, whereas analytical techniques using Structural Equation Modeling. The results showed that the growth strategy is influenced by entrepreneurial competencies, so the business growth strategy, as a mediator of the effect of entrepreneurial competencies on SMEs performance, meaning that the increase of the entrepreneurial competencies will lead to a higher capability implementing the growth strategy. This eventually affects the SMEs performance. Entrepreneurial competencies will affect the better business growth strategy. In turn, it can also ultimately improve SMEs performance. Thus, the key factor in the SMEs performance in Malang Regency is the level of competency owned by the owners and the implementation of growth strategy. 


Keywords


business perfomance, entrepreneurial competencies, strategies

Full Text:

PDF

References


Ahmad, NH, Halim, HA and Zainal, SRM 2010, Is Entrepreneurial Competency the Silver Bullet for SME Success in a Development Nation?, International Business Management, 4 (2), pp. 67-75.

Aragón-Sánchez, A and Sánchez-Marín, G 2005, Strategic orientation, management characteristics, and performance: A study of Spanish SMEs, Journal of Small Business Management, 43 (3), pp.287-308.

Baum, JR, Locke, EA & Smith, KG 2001, A Multidimensional Model of Venture Growth, Academy of Management Journal, 44 (2), pp. 292-303.

Beal, RM 2000, Competing effectively: Environmental scanning, competitive strategy, and organizational performance in small manufacturing firms, Journal of small business management, 38(1), pp. 27.

Bird, B 1995, Towards a theory of entrepreneurial competency, Advances in Entrepreneurship, Firm Emergence and Growth, 2, pp. 51-72.

Blackman, AJ 2003, Entrepreneurs: Interrelationships between their characteristics, values, expectations, management practices and SME performance, School of Business Department of Management Griffith University, Gold Coast Campus, (Submitted in fulfillment of the require- ments of the degree of Doctor of Philosophy).

Cooper, DR & Emory, CW 2006, Business Research Methods, McGraw, Hill.

Covin, JG and Slevin, DP 1991, A conceptual model of entrepreneurship as firm behavior, Entrepreneurship: Theory and Practice, 16 (1), pp. 7–24.

Gibcus, P and Kemp, RGM 2003, Strategy and small firm performance, EIM Business & Policy Research.

Hashim, MK 2000, Business strategy and performance in Malaysian SMEs: A recent survey, Malaysian Management Review, 35 (2), pp. 1-10.

Hisrich, RD, Peter, MP and Shepherd, D 2008, Entrepreneurship, Salemba Empat, Jakarta.

Kemp, R and Verhoeven, W 2002, Growth patterns of medium sized, fast growing firms: the optimal resource bundles for organizational growth and performances, SCALES, Zoeter meer.

Kiggundu, MN 2002, Entrepreneurs and entrepreneurship in Africa: what is known and what needs to be done;, Journal of Developmental Entrepreneurship, 7 (3), pp. 239-258.

Lee, DY & Tsang, EWK 2001, The effects of entrepreneurial personality, background and network activities on venture growth, Journal of Management Studies, 38 (4), pp. 583–602.

Li, H, Zhang, Y and Chan, TS 2005, Entrepreneurial strategy making and performance in China's new technology ventures the contingency effect of environments and firm competences, The Journal of High Technology Management Research, 16 (1), pp. 37-57.

Lin, BW, Li, PC and Chen, JS 2006, Social capital, capabilities, and entrepreneurial strategies: a study of Taiwanese high tech new ventures, Technological Forecasting and Social Change, 73 (2), pp. 168-181.

Man, TW, Lau, T and Chan, KF 2002, The competitiveness of small and medium enterprises a conceptualization with focus on entrepreneurial competencies, Journal of Business Venturing, 17 (2), pp. 123–142.

Man, TWY & Lau, T 2005, The context of entrepreneurship in Hong Kong, Journal of Small Business and Enterprise Development, 12 (4), pp. 464–481.

Man, TWY 2001, Entrepreneurial Competencies and The Performance of Small and Medium Enterprises in Hongkong Services Sector, Doctoral dissertation, Hongkong Polytechnic University.

Nimalathasan & B 2008, A Relationship Between Owner Managers Characteristic and usiness Performance, Les ET Scientia International Journal, XI (1), pp. 61–68.

O’Regan, N, Sims, M & Ghobadian, A 2005, High performance: ownership and decision making in SMEs, Management Decision, 43(3), pp. 382– 396.

Philipsen, RLC and Kemp, RGM 2003, Capabilities for growth: An exploratory study on medium sized firms in the Dutch ICT services and life sciences, EIM Business & Policy Research.

Sanchez, Anthono Aragon and Marin, Gregorio Sanchez 2005, Strategic orientation, management characteristics, and performance, A study of Spanish SMEs, Journal of Small Business Management, 43 (3), pp. 287-306.

Sarwoko, E, Surachman & Hadiwidjojo, D 2013, Entrepreneurial Characteristics and Competency as Determinants of Business Performance in SMEs’, IOSR Journal of Business and Management, 7 (3), pp. 31–38.

Solichin, E 2005, Kajian Karakteristik Entrepreneurship dan Iklim Usaha serta Kontribusinya terhadap Kemajuan Usaha, Dissertation, Program Studi Ilmu Pertanian Minat Ekonomi Pertanian, Program Pascasarjana Universitas Brawijaya Malang.

Zahra, SA and Covin JG 1995, Contextual influences on the corporate entrepreneurship performance relationship: A longitudinal analysis, Journal of Business Venturing, 10 (1), pp. 43-58.

Zoysa, A De and Herath, SK 2007, The impact of owner/managers’ mentality on financial performance of SMEs in Japan: An empirical investigation, Journal of Management Development, 26 (7), pp. 652–666.




DOI: http://dx.doi.org/10.14414/jebav.v19i2.460

Refbacks

  • There are currently no refbacks.




Copyright (c) 2017 Journal of Economics, Business, and Accountancy | Ventura



The 6th International Conference on Business and Banking (ICBB) VI

Abstracting & Indexing

 

 

Hasil gambar untuk ccbyncsa

Copyright @ 2010 Pusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE)