This document discusses the role of social and technological challenges in achieving sustainable competitive advantage and sustainable business performance for small and medium enterprises (SMEs) in Malaysia. It first provides background on the importance of SMEs to the Malaysian economy. It then discusses some of the key social and technological challenges Malaysian SMEs face, such as social responsibility, employee values and beliefs, information technology (IT) management resources, and implementing new technologies. The study aims to examine how effectively managing these challenges can help SMEs gain a sustainable competitive advantage and improve sustainable business performance over time. It uses a resource-based view theoretical framework to hypothesize how social and technological resources, when properly leveraged through strategic alignment, can boost competitive advantage
The Moderating Effects of Entrepreneurial Learning on the Relationship betwee...theijes
The purpose of this study to know the Influence of Entrepreneurship Orientation on Business Performance with Entrepreneurial Learning as Moderating Variable in Small Medium Enterprises (SMEs) in Southeast Sulawesi (Studies in the Food Industry). Population totaled 109 IKM foods that have met the criteria spread over 4 (four) districts in Southeast Sulawesi province, that consists of: Konsel, Bombana, Kolaka and Kendari. The analysis technique used is Structural Equation Modeling (SEM) of AMOS7 and statistical software package SPSS (Statistic Packages for Social Sciences). In this study, researchers tested the validity of the simple correlation technique with SPSS version 12.0 The results of this study showed that the entrepreneurial orientation plays an important role in improving the performance of SMEs. The next entrepreneurial learning plays an important role in improving the performance of SMEs. There is a direct influence on the business performance of learning entrepreneurial SME food but not significant. The results of this study also prove that the entrepreneurial orientation moderated by entrepreneurial learning plays an important role in improving the performance of SMEs. This means that the entrepreneurial orientation will be stronger and not directly served to increase the performance of SMEs when supported with the right entrepreneurial learning in improving the performance of SMEs. This means that we need a learning that is applied so that the benefits of learning to give importance in the improvement of the performance of SMEs.
The Effects of Industrial Environment, Innovation, and Government Policy on B...IOSR Journals
This research aims to provide information about the effects of industrial environment on business performance, industrial environment on business performance with innovation as moderating variable, innovation on business performance and innovation on business performance with government policy as moderating variable. The population of this research is all small industries especially Tenun Songket Riau in Pekanbaru City, Bengkalis Sub District, and Siak Sub District, as many as 330 business units. Sampling method used is proportional sampling with total sample of 110 business units. Structural Equation Modeling (SEM) is used as data analysis and to be processed with AMOS 16 software. The findings of this study are as follows: (1) the more dynamic industrial environment results better business performance of small industry of Riau Songket Weaving; (2) the more dynamic industrial environment supports innovation capability and impacts better business performance of small industry of Riau Songket Weaving; (3) the higher innovation capability of the business results better business performance of small industry of Riau Songket Weaving, and (4) the higher innovation capability and to be supported by conducive government policy impacts better business performance of small industry of Riau Songket Weaving.
This document summarizes a research study that examined how characteristics of entrepreneurs and firms affect the business success of small and medium enterprises (SMEs) in Bangladesh. The study found that entrepreneur characteristics, such as age, gender, education level and experience, significantly impacted business success, while firm characteristics did not. Specifically, SMEs operated longer by entrepreneurs were more successful, and male-owned SMEs performed better than female-owned ones. The document provides background on SMEs' important contributions to the Bangladeshi economy and reviews prior literature on factors influencing business success.
This document summarizes a literature review on business process reengineering (BPR). It analyzes 27 peer-reviewed articles on BPR published between 2012 and 2021 in the Scopus database. Key findings include:
1) The most publications were in 2015 and 2016, with journals like the Journal of Business Process Management publishing multiple articles.
2) Research covered issues like loss of employee autonomy and challenges implementing BPR in sectors like healthcare and aviation. Advantages included improved efficiency and competitiveness.
3) Future research prospects include further examining BPR implementation barriers in different contexts and sectors.
The unit discusses the theoretical framework of business environment which includes the internal environment that is controllable and the external or macro environment consisting of political, legal, economic, technological, demographic and global factors. It explains techniques to analyze the environment like PESTLE, SWOT and environmental scanning. Recent developments in India's political, economic and social environment are also highlighted. The unit then focuses on SWOT analysis of Indian economy and achievements of five year plans in India towards industrialization and economic growth.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
The Effect of Change Management on Operational Excellence in Electrical and E...oon fok yew
This document summarizes a study that investigates the relationship between change management and operational excellence in the electrical and electronics industry in Malaysia. The study uses a survey of over 100 organizations to analyze how factors of change management like transformational leadership, human resource practices, and cultural involvement relate to achieving operational excellence. The findings suggest these change management factors have a significant positive relationship with operational excellence. This adds to the understanding of both change management and operational management, and provides practical implications for manufacturing strategies and managing organizational change in the industry.
The document discusses knowledge shifting processes when an energy company changes its vision and mission to extend its business scope. It uses Pertamina, an Indonesian energy company, as a case study. The key points are:
1) Pertamina changed its vision from an oil and gas company to an energy company to include new and renewable energy due to environmental regulations.
2) This led to three phases - changing vision and mission, changing strategy/business processes/organization, and shifting knowledge.
3) Knowledge shifting involves managing existing employees' new knowledge and hiring new employees with knowledge matching the extended scope.
4) A knowledge shifting process model is proposed based on knowledge-based view theory to
The Moderating Effects of Entrepreneurial Learning on the Relationship betwee...theijes
The purpose of this study to know the Influence of Entrepreneurship Orientation on Business Performance with Entrepreneurial Learning as Moderating Variable in Small Medium Enterprises (SMEs) in Southeast Sulawesi (Studies in the Food Industry). Population totaled 109 IKM foods that have met the criteria spread over 4 (four) districts in Southeast Sulawesi province, that consists of: Konsel, Bombana, Kolaka and Kendari. The analysis technique used is Structural Equation Modeling (SEM) of AMOS7 and statistical software package SPSS (Statistic Packages for Social Sciences). In this study, researchers tested the validity of the simple correlation technique with SPSS version 12.0 The results of this study showed that the entrepreneurial orientation plays an important role in improving the performance of SMEs. The next entrepreneurial learning plays an important role in improving the performance of SMEs. There is a direct influence on the business performance of learning entrepreneurial SME food but not significant. The results of this study also prove that the entrepreneurial orientation moderated by entrepreneurial learning plays an important role in improving the performance of SMEs. This means that the entrepreneurial orientation will be stronger and not directly served to increase the performance of SMEs when supported with the right entrepreneurial learning in improving the performance of SMEs. This means that we need a learning that is applied so that the benefits of learning to give importance in the improvement of the performance of SMEs.
The Effects of Industrial Environment, Innovation, and Government Policy on B...IOSR Journals
This research aims to provide information about the effects of industrial environment on business performance, industrial environment on business performance with innovation as moderating variable, innovation on business performance and innovation on business performance with government policy as moderating variable. The population of this research is all small industries especially Tenun Songket Riau in Pekanbaru City, Bengkalis Sub District, and Siak Sub District, as many as 330 business units. Sampling method used is proportional sampling with total sample of 110 business units. Structural Equation Modeling (SEM) is used as data analysis and to be processed with AMOS 16 software. The findings of this study are as follows: (1) the more dynamic industrial environment results better business performance of small industry of Riau Songket Weaving; (2) the more dynamic industrial environment supports innovation capability and impacts better business performance of small industry of Riau Songket Weaving; (3) the higher innovation capability of the business results better business performance of small industry of Riau Songket Weaving, and (4) the higher innovation capability and to be supported by conducive government policy impacts better business performance of small industry of Riau Songket Weaving.
This document summarizes a research study that examined how characteristics of entrepreneurs and firms affect the business success of small and medium enterprises (SMEs) in Bangladesh. The study found that entrepreneur characteristics, such as age, gender, education level and experience, significantly impacted business success, while firm characteristics did not. Specifically, SMEs operated longer by entrepreneurs were more successful, and male-owned SMEs performed better than female-owned ones. The document provides background on SMEs' important contributions to the Bangladeshi economy and reviews prior literature on factors influencing business success.
This document summarizes a literature review on business process reengineering (BPR). It analyzes 27 peer-reviewed articles on BPR published between 2012 and 2021 in the Scopus database. Key findings include:
1) The most publications were in 2015 and 2016, with journals like the Journal of Business Process Management publishing multiple articles.
2) Research covered issues like loss of employee autonomy and challenges implementing BPR in sectors like healthcare and aviation. Advantages included improved efficiency and competitiveness.
3) Future research prospects include further examining BPR implementation barriers in different contexts and sectors.
The unit discusses the theoretical framework of business environment which includes the internal environment that is controllable and the external or macro environment consisting of political, legal, economic, technological, demographic and global factors. It explains techniques to analyze the environment like PESTLE, SWOT and environmental scanning. Recent developments in India's political, economic and social environment are also highlighted. The unit then focuses on SWOT analysis of Indian economy and achievements of five year plans in India towards industrialization and economic growth.
This document summarizes a study on the relationship between corporate innovation and organizational performance in the telecommunications industry in Somalia. The study used a cross-sectional survey of 180 employees from telecom companies in three cities. It found that technological innovation, administrative innovation, and strategic innovation all had a statistically significant positive effect on organizational performance. Therefore, telecom companies need to focus on these factors to maintain their performance in the future.
The Effect of Change Management on Operational Excellence in Electrical and E...oon fok yew
This document summarizes a study that investigates the relationship between change management and operational excellence in the electrical and electronics industry in Malaysia. The study uses a survey of over 100 organizations to analyze how factors of change management like transformational leadership, human resource practices, and cultural involvement relate to achieving operational excellence. The findings suggest these change management factors have a significant positive relationship with operational excellence. This adds to the understanding of both change management and operational management, and provides practical implications for manufacturing strategies and managing organizational change in the industry.
The document discusses knowledge shifting processes when an energy company changes its vision and mission to extend its business scope. It uses Pertamina, an Indonesian energy company, as a case study. The key points are:
1) Pertamina changed its vision from an oil and gas company to an energy company to include new and renewable energy due to environmental regulations.
2) This led to three phases - changing vision and mission, changing strategy/business processes/organization, and shifting knowledge.
3) Knowledge shifting involves managing existing employees' new knowledge and hiring new employees with knowledge matching the extended scope.
4) A knowledge shifting process model is proposed based on knowledge-based view theory to
This document provides an overview of business and its environment. It begins by defining business and describing the different types, including commerce, industry, and services. It then discusses the objectives of business firms, which include profit-making, growth, power, employee satisfaction, quality products/services, market leadership, and service to society.
The document outlines the direct and indirect elements of a business's external environment, such as customers, suppliers, competitors, labor, financial institutions, government agencies, technological changes, economic conditions, and political/legal factors. It also describes strategies businesses use to cope with and control their uncertain environments, such as buffering, smoothing, forecasting, and structural complexity.
This document discusses business and its environment. It defines business and describes the different kinds of business including commerce, industry, and services. The objectives of business are outlined as creation and distribution of products/services, satisfaction of personal objectives, protection of resources, and effective operations. The environment affects how businesses succeed or fail. The external environment includes direct elements like customers and suppliers and indirect elements like technological and economic factors. Organizations must match their design to their environment, whether static or dynamic, to ensure survival through coping strategies and environmental control measures.
The document discusses the business environment and its various components. It defines the business environment as the set of external conditions including economic, social, political, and technological factors that are beyond a business's control but influence its operations. The business environment can be categorized into the micro environment comprising suppliers, customers, competitors, and other actors in close proximity to the business, and the macro environment consisting of broader forces like economic, political, social, and technological conditions affecting all businesses.
In technological developments and the demands of the times, it requires the Regional Secretariat of
East Java Province to have a strategy to provide excellent service to the citizens of East Java. Not achievement
yet of the predicate as a Regional Government with Excellent Service and the existence of various problems and
public complaints related to the public service bureaucracy triggers and spurs the East Java Provincial
Government to realize competitive organizational performance
The study presents a conceptual framework showing the moderating role of technological turbulence on the relationship between total quality management and firms performance. Literature was reviewed before arriving at the proposed conceptual framework. From the model, it is proposed that the relationship between total quality management and organizational performance will be stronger when technological turbulence is supportive and taken in to consideration by Nigerian banking industry. Organizations that leverages on opportunities that evolves around its external environment in terms of change in technology has an edge in attaining competitive edge and improving performance of their organizations more efficiently and effectively than competitors do.
This document summarizes a study that investigated the dominant types of strategic orientation among telecommunication firms in Nigeria. The study identified technological orientation and market orientation as the two main strategic orientations. A survey was conducted of 123 employees across the major telecommunication firms in Nigeria, with 98 responses analyzed. The results indicated that while both orientations are moderately demonstrated, the firms exhibit a stronger market orientation compared to a technological orientation. The study suggested future research should use a longitudinal design and compare the extent of implementing strategic orientations among companies.
The document provides an overview of key concepts in business management including the 5 functional areas of business (management, operations, marketing, accounting, and finance), and factors that influence businesses both internally and externally. It discusses management, operations, marketing, accounting, and finance functions. It also explains internal factors like leadership and resources, and external factors like political, economic, social and technological aspects that impact businesses. SWOT and PEST analysis frameworks are introduced to analyze strengths, weaknesses, opportunities, threats, and external environmental factors.
Business Environment: Concept, Nature and Significance,
Environment Scanning: Meaning, Nature and scope, Process of Environment Scanning, Interaction between Internal and External Environment
Factors Influencing Non-Teaching Employees’ Performance in Kenya: A Case Stud...paperpublications3
Abstract: The study aimed at analyzing the factors influencing non-teaching employees’ performance in Kitale National Polytechnic. Non-teaching employees play a significant role in achieving the goals of an institution. The study was guided by the following research objectives: -to examine the effect of training on non-teaching employee’s performance at Kitale National Polytechnic, to analyze the effect of organization culture on non-teaching employee’s performance at Kitale National Polytechnic, to determine the effect of working environment on non-teaching employee’s performance at Kitale National Polytechnic and to evaluate the effect of motivation on non-teaching employee’s performance at Kitale National Polytechnic. The study was conducted through a descriptive research design. Sixty one non-teaching employees of Kitale National Polytechnic were the target population. The whole population formed the sample size. A questionnaire was the main tool for primary data collection. Descriptive and inferential statistics and regression analysis were used in interpreting the collected data. The study will be able to answer the hurdles that non-teaching employees face while performing their tasks. The findings established in this study will create a path to improved performance of non-teaching employees not only in Kitale National Polytechnic but all the national polytechnics in Kenya.
The document discusses key aspects of an organization's internal business environment, including communicating its purpose through a mission statement to establish culture. It provides examples of effective mission statements and notes that a vision statement indicates where the business aims to be. The real corporate culture may differ from official statements and is best understood through direct observation of management style, employee relations, customer interactions and other indicators. Business ethics refer to the moral principles guiding decisions and actions, with socially responsible concerns for society.
The document discusses the external environment that affects businesses. It defines the external environment as factors outside a business's direct control that can indirectly influence it. The external environment is divided into the micro and macro environment.
The micro environment includes factors close to the business like customers, employees, suppliers, shareholders, media, and competitors that directly impact operations. The macro environment comprises broader forces like political, economic, social, technological, legal, environmental, and ethical factors influencing the context for a business. Both the micro and macro environments are important for a business to understand to adapt to its surroundings.
The document discusses the internal environment of a business organization. It states that the internal environment includes factors that are under the control of the organization, such as its value system, management structure, human resources, company image, physical assets, research and development capabilities, and marketing and financial resources. It provides details on each of these internal factors, describing how they can influence the growth and success of the organization.
The document discusses the external environment that businesses operate within, including the micro and macro environments. The micro environment consists of suppliers, customers, marketing intermediaries, financiers, and the public. The macro environment includes economic, legal, technical, social/cultural, and political factors. Economic factors influence the business system and policies. Legal factors include applicable laws and court rulings. Technological factors determine the types of products, equipment, and quality used. Social and cultural factors shape values and work culture. Political factors relate to government policies toward and control/regulation of businesses. The external environment has indirect but significant influence on businesses.
The document defines business environment as the external conditions, events, and influences that affect how a business operates. It discusses the key characteristics of business environment such as its complexity, dynamic nature, opportunities and threats posed. The importance of studying business environment is highlighted to help businesses adapt to changes, exploit opportunities, and ensure acceptability and optimal resource utilization. The different types of business environments like political, economic, social, technological, natural and international are outlined. Specific examples of India's current business environment like inflation rates and FDI investments are provided. The conclusion states that India's business environment and GDP growth have improved due to government initiatives.
The document discusses three areas of business management that are constantly changing: technology, financial, and personnel. It notes that technology is evolving rapidly and managers must balance its implementation. Financially, the economic environment impacts business performance so expenses must be cut while maintaining effectiveness. For personnel, each employee is unique and must be motivated according to their strengths to maximize performance. Real-life business operations integrate all three changing areas, so constant evaluation is needed to make necessary adjustments.
1) The document examines the relationship between corporate social responsibility (CSR) and financial performance of Chinese listed companies, analyzing how CSR may have a deferred effect on improving financial metrics like return on assets (ROA) and return on equity (ROE).
2) It uses ordinary least squares regression to model the impact of current and previous years' CSR performance scores on current financial performance, controlling for factors like company size, earnings per share, industry, and age.
3) Preliminary results suggest CSR may not generate immediate financial gains but could improve financial performance over longer periods as CSR benefits materialize for stakeholders and boost a company's reputation, market share, and ultimately profits.
An appraisal on small firms corporate cultureprjpublications
This document discusses the relationship between corporate culture, innovation, and reward systems in small firms. It argues that developing a corporate culture that supports innovation must be accompanied by an appropriate reward system. A study of small firms in Chennai found a statistically significant relationship between corporate cultures that support innovation and reward system features. Most innovative companies have reward systems that encourage and reinforce innovative behaviors that are part of the corporate culture. Statistically significant relationships were also found among innovation rewards, corporate culture, and different features of variable pay systems.
Enterprise resource planning (erp) system in higherprjpublications
This document provides a literature review on enterprise resource planning (ERP) systems in higher education. It discusses key topics such as the benefits of ERP systems, factors that contribute to ERP implementation success or failure, and the need to minimize customization of ERP systems. The review finds that specific groups within an organization and third-party vendors/consultants play an important role in ERP implementation success. Checklists are also important to develop before and after procuring an ERP system to ensure requirements are met.
Validity and reliability analysis of the baldrige excellence framework scaleoon fok yew
This document examines the validity and reliability of the Baldrige Excellence Framework scale for use in Electrical and Electronics (E&E) manufacturing companies in Malaysia. It describes a study that administered a survey based on the Baldrige Framework criteria to 325 employees from four E&E subsectors. The analysis found the survey instrument to be valid and reliable for assessing business excellence in Malaysian E&E manufacturing based on the Baldrige Framework. However, the results may not be generalizable to other industries due to potential differences. The validated measures can guide future research and allow E&E managers to evaluate their organization's level of business excellence.
TECHNOPRENEOURSHIP CONTRIBUTION ON SMALL MEDIUM INDUSTRY BUSINESS PERFOMANCE ...indexPub
The purpose of this study was to analyze the role of technopreneurs in supporting the productivity of small and medium industry (SMIs). The effect of innovation on small and medium industry business performance, the influence of Information Technology on business performance, and the role of Information Technology in mediating innovation on business performance were tested in this study. Data were collected using an online questionnaire. A total of 347 questionnaires were sent to the business owner of SMIs in Bali province. This study used structural equation modeling analysis with partial least square (PLS) software to analyze three research problems.
This document summarizes a research study that examined the relationship between environmental factors and the performance of micro and small-scale enterprises (MSEs) in Nigeria. The study focused on MSEs in two towns in Ondo State, Nigeria. A survey was conducted of 204 MSE owners/managers. The findings revealed that environmental factors like inadequate finance, inadequate infrastructure, and poor managerial skills had a significant negative relationship with MSE performance as measured by profit, revenue, and number of employees. Specifically, the study found that most MSEs are chronically underfunded due to issues accessing funding. Owners/managers also lacked requisite managerial skills because of ignorance of training benefits. Inadequate infrastructure only minimally affected performance because MSEs
This document provides an overview of business and its environment. It begins by defining business and describing the different types, including commerce, industry, and services. It then discusses the objectives of business firms, which include profit-making, growth, power, employee satisfaction, quality products/services, market leadership, and service to society.
The document outlines the direct and indirect elements of a business's external environment, such as customers, suppliers, competitors, labor, financial institutions, government agencies, technological changes, economic conditions, and political/legal factors. It also describes strategies businesses use to cope with and control their uncertain environments, such as buffering, smoothing, forecasting, and structural complexity.
This document discusses business and its environment. It defines business and describes the different kinds of business including commerce, industry, and services. The objectives of business are outlined as creation and distribution of products/services, satisfaction of personal objectives, protection of resources, and effective operations. The environment affects how businesses succeed or fail. The external environment includes direct elements like customers and suppliers and indirect elements like technological and economic factors. Organizations must match their design to their environment, whether static or dynamic, to ensure survival through coping strategies and environmental control measures.
The document discusses the business environment and its various components. It defines the business environment as the set of external conditions including economic, social, political, and technological factors that are beyond a business's control but influence its operations. The business environment can be categorized into the micro environment comprising suppliers, customers, competitors, and other actors in close proximity to the business, and the macro environment consisting of broader forces like economic, political, social, and technological conditions affecting all businesses.
In technological developments and the demands of the times, it requires the Regional Secretariat of
East Java Province to have a strategy to provide excellent service to the citizens of East Java. Not achievement
yet of the predicate as a Regional Government with Excellent Service and the existence of various problems and
public complaints related to the public service bureaucracy triggers and spurs the East Java Provincial
Government to realize competitive organizational performance
The study presents a conceptual framework showing the moderating role of technological turbulence on the relationship between total quality management and firms performance. Literature was reviewed before arriving at the proposed conceptual framework. From the model, it is proposed that the relationship between total quality management and organizational performance will be stronger when technological turbulence is supportive and taken in to consideration by Nigerian banking industry. Organizations that leverages on opportunities that evolves around its external environment in terms of change in technology has an edge in attaining competitive edge and improving performance of their organizations more efficiently and effectively than competitors do.
This document summarizes a study that investigated the dominant types of strategic orientation among telecommunication firms in Nigeria. The study identified technological orientation and market orientation as the two main strategic orientations. A survey was conducted of 123 employees across the major telecommunication firms in Nigeria, with 98 responses analyzed. The results indicated that while both orientations are moderately demonstrated, the firms exhibit a stronger market orientation compared to a technological orientation. The study suggested future research should use a longitudinal design and compare the extent of implementing strategic orientations among companies.
The document provides an overview of key concepts in business management including the 5 functional areas of business (management, operations, marketing, accounting, and finance), and factors that influence businesses both internally and externally. It discusses management, operations, marketing, accounting, and finance functions. It also explains internal factors like leadership and resources, and external factors like political, economic, social and technological aspects that impact businesses. SWOT and PEST analysis frameworks are introduced to analyze strengths, weaknesses, opportunities, threats, and external environmental factors.
Business Environment: Concept, Nature and Significance,
Environment Scanning: Meaning, Nature and scope, Process of Environment Scanning, Interaction between Internal and External Environment
Factors Influencing Non-Teaching Employees’ Performance in Kenya: A Case Stud...paperpublications3
Abstract: The study aimed at analyzing the factors influencing non-teaching employees’ performance in Kitale National Polytechnic. Non-teaching employees play a significant role in achieving the goals of an institution. The study was guided by the following research objectives: -to examine the effect of training on non-teaching employee’s performance at Kitale National Polytechnic, to analyze the effect of organization culture on non-teaching employee’s performance at Kitale National Polytechnic, to determine the effect of working environment on non-teaching employee’s performance at Kitale National Polytechnic and to evaluate the effect of motivation on non-teaching employee’s performance at Kitale National Polytechnic. The study was conducted through a descriptive research design. Sixty one non-teaching employees of Kitale National Polytechnic were the target population. The whole population formed the sample size. A questionnaire was the main tool for primary data collection. Descriptive and inferential statistics and regression analysis were used in interpreting the collected data. The study will be able to answer the hurdles that non-teaching employees face while performing their tasks. The findings established in this study will create a path to improved performance of non-teaching employees not only in Kitale National Polytechnic but all the national polytechnics in Kenya.
The document discusses key aspects of an organization's internal business environment, including communicating its purpose through a mission statement to establish culture. It provides examples of effective mission statements and notes that a vision statement indicates where the business aims to be. The real corporate culture may differ from official statements and is best understood through direct observation of management style, employee relations, customer interactions and other indicators. Business ethics refer to the moral principles guiding decisions and actions, with socially responsible concerns for society.
The document discusses the external environment that affects businesses. It defines the external environment as factors outside a business's direct control that can indirectly influence it. The external environment is divided into the micro and macro environment.
The micro environment includes factors close to the business like customers, employees, suppliers, shareholders, media, and competitors that directly impact operations. The macro environment comprises broader forces like political, economic, social, technological, legal, environmental, and ethical factors influencing the context for a business. Both the micro and macro environments are important for a business to understand to adapt to its surroundings.
The document discusses the internal environment of a business organization. It states that the internal environment includes factors that are under the control of the organization, such as its value system, management structure, human resources, company image, physical assets, research and development capabilities, and marketing and financial resources. It provides details on each of these internal factors, describing how they can influence the growth and success of the organization.
The document discusses the external environment that businesses operate within, including the micro and macro environments. The micro environment consists of suppliers, customers, marketing intermediaries, financiers, and the public. The macro environment includes economic, legal, technical, social/cultural, and political factors. Economic factors influence the business system and policies. Legal factors include applicable laws and court rulings. Technological factors determine the types of products, equipment, and quality used. Social and cultural factors shape values and work culture. Political factors relate to government policies toward and control/regulation of businesses. The external environment has indirect but significant influence on businesses.
The document defines business environment as the external conditions, events, and influences that affect how a business operates. It discusses the key characteristics of business environment such as its complexity, dynamic nature, opportunities and threats posed. The importance of studying business environment is highlighted to help businesses adapt to changes, exploit opportunities, and ensure acceptability and optimal resource utilization. The different types of business environments like political, economic, social, technological, natural and international are outlined. Specific examples of India's current business environment like inflation rates and FDI investments are provided. The conclusion states that India's business environment and GDP growth have improved due to government initiatives.
The document discusses three areas of business management that are constantly changing: technology, financial, and personnel. It notes that technology is evolving rapidly and managers must balance its implementation. Financially, the economic environment impacts business performance so expenses must be cut while maintaining effectiveness. For personnel, each employee is unique and must be motivated according to their strengths to maximize performance. Real-life business operations integrate all three changing areas, so constant evaluation is needed to make necessary adjustments.
1) The document examines the relationship between corporate social responsibility (CSR) and financial performance of Chinese listed companies, analyzing how CSR may have a deferred effect on improving financial metrics like return on assets (ROA) and return on equity (ROE).
2) It uses ordinary least squares regression to model the impact of current and previous years' CSR performance scores on current financial performance, controlling for factors like company size, earnings per share, industry, and age.
3) Preliminary results suggest CSR may not generate immediate financial gains but could improve financial performance over longer periods as CSR benefits materialize for stakeholders and boost a company's reputation, market share, and ultimately profits.
An appraisal on small firms corporate cultureprjpublications
This document discusses the relationship between corporate culture, innovation, and reward systems in small firms. It argues that developing a corporate culture that supports innovation must be accompanied by an appropriate reward system. A study of small firms in Chennai found a statistically significant relationship between corporate cultures that support innovation and reward system features. Most innovative companies have reward systems that encourage and reinforce innovative behaviors that are part of the corporate culture. Statistically significant relationships were also found among innovation rewards, corporate culture, and different features of variable pay systems.
Enterprise resource planning (erp) system in higherprjpublications
This document provides a literature review on enterprise resource planning (ERP) systems in higher education. It discusses key topics such as the benefits of ERP systems, factors that contribute to ERP implementation success or failure, and the need to minimize customization of ERP systems. The review finds that specific groups within an organization and third-party vendors/consultants play an important role in ERP implementation success. Checklists are also important to develop before and after procuring an ERP system to ensure requirements are met.
Validity and reliability analysis of the baldrige excellence framework scaleoon fok yew
This document examines the validity and reliability of the Baldrige Excellence Framework scale for use in Electrical and Electronics (E&E) manufacturing companies in Malaysia. It describes a study that administered a survey based on the Baldrige Framework criteria to 325 employees from four E&E subsectors. The analysis found the survey instrument to be valid and reliable for assessing business excellence in Malaysian E&E manufacturing based on the Baldrige Framework. However, the results may not be generalizable to other industries due to potential differences. The validated measures can guide future research and allow E&E managers to evaluate their organization's level of business excellence.
TECHNOPRENEOURSHIP CONTRIBUTION ON SMALL MEDIUM INDUSTRY BUSINESS PERFOMANCE ...indexPub
The purpose of this study was to analyze the role of technopreneurs in supporting the productivity of small and medium industry (SMIs). The effect of innovation on small and medium industry business performance, the influence of Information Technology on business performance, and the role of Information Technology in mediating innovation on business performance were tested in this study. Data were collected using an online questionnaire. A total of 347 questionnaires were sent to the business owner of SMIs in Bali province. This study used structural equation modeling analysis with partial least square (PLS) software to analyze three research problems.
This document summarizes a research study that examined the relationship between environmental factors and the performance of micro and small-scale enterprises (MSEs) in Nigeria. The study focused on MSEs in two towns in Ondo State, Nigeria. A survey was conducted of 204 MSE owners/managers. The findings revealed that environmental factors like inadequate finance, inadequate infrastructure, and poor managerial skills had a significant negative relationship with MSE performance as measured by profit, revenue, and number of employees. Specifically, the study found that most MSEs are chronically underfunded due to issues accessing funding. Owners/managers also lacked requisite managerial skills because of ignorance of training benefits. Inadequate infrastructure only minimally affected performance because MSEs
Development Strategy For Smes Through Product Differentiation And Government Regulations With Working Capital As Moderating Variable : Case Study In Semarang City Indonesia
The purpose of this research is for the growth and development of Micro, Small and Medium
Enterprises to be able to help and improve the economy and absorb as much workforce as possible as well as
the introduction of regional superior products, especially Micro and Medium Enterprises. The analytical method
is carried out through explanatory research, with the PLS/SEM application. The concepts and problems studied
look at the causal relationship, then explain the variables that cause the problems studied. The research sample
was 178 Micro, Small and Medium Enterprises in the South Tangerang area. The findings from this study are
that there is a positive influence of strategic orientation, organizational culture, corporate entrepreneurship on
firm performance. There is a positive influence of strategic orientation, organizational culture, corporate
entrepreneurship on business model innovation. There is a positive influence of business model innovation on
firm performance. There is a positive influence of strategic orientation, organizational culture, corporate
entrepreneurship on firm performance mediated by business model innovation. Theoretical implications of the
existence of a business model innovation through increasing its dimensions can increase the firm performance of
Micro and Medium Enterprises actors and can increase the trust and loyalty of related parties. Improving and
developing production quality first, paying attention to development and innovation. Strategic orientation will
provide a good indication of the firm performance of Micro and Medium Enterprises. Managerial implications
state that product quality, in the process of involving strategic orientation, organizational culture, corporate
entrepreneurship, all entrepreneurs with third parties is very close, so that cooperation and conformity of
technical specifications to the wishes of the community must be a top priority. The quality of Micro and Medium
Enterprises actors in terms of cooperation, production quality, performance of divisions such as decision
makers, is a picture that can be felt by the community or parties who work together, so that these various
qualities must be a priority for the improvement of Micro, Small and Medium Enterprises.
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The Importance of Entrepreneurship and Information Technology for SMEs Strate...ijtsrd
The policy of developing the economic model of a country aims to stimulate all economic sectors to advance and develop into strengths on a regional and national scale. Micro, small and medium enterprises SMEs have become one of the most effective engines in developing economic market patterns in almost all countries and regions of the world. SMEs that contribute to this economic sector are the largest contributors to the pattern of advanced economies that drive competitive economic growth. SMEs actors have become the driving force of the economy and this must be recognized by the State in terms of their participation. The significant role of SMEs in the economies of world countries is very crucial in reviving and stabilizing and nourishing the global economy where their role will be seen in the conditions that SMEs fail or succeed in their journey. Basically, SMEs have little in having the driving capital of their business to develop and generally do not have much technical capability which causes them to be low in all circumstances and lack of access to develop capital for their future investment. In addition, the development of SMEs has become an important mechanism of how to develop economic growth, create jobs, and alleviate poverty from economic types. This article specifically discusses small scale entrepreneurshiphip and increases the use of information technology in the mission of supporting performance and competitive advantage. small business actors. The main purpose of this article is how to contribute positive thoughts to entrepreneurship or entrepreneurship in the use of entrepreneurial orientation, information technology in building strategic planning to support business performance and towards competitive advantage for entrepreneurship, especially SMEs. Lena Ellitan "The Importance of Entrepreneurship and Information Technology for SMEs Strategic Planning" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42479.pdf Paper URL: https://www.ijtsrd.commanagement/new-venture-startup/42479/the-importance-of-entrepreneurship-and-information-technology-for-smes-strategic-planning/lena-ellitan
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The Malaysia polytechnics is expected to lead the field of thrust programs (niche area) and specific technology that can produce quality graduates with entrepreneurship abilities. The paper seeks answers how current entrepreneurship education in Malaysia polytechnics encourages the development of entrepreneurship education in the institutions. In this study, data were collected from Higher Learning Institutions Tracer Study Report from 2012 until 2015 and Key Performance Index (KPI) 2016 and 2017 for Entrepreneurship in Malaysian Polytechnic. A finding shows that entrepreneurship has inclined in Malaysia Polytechnics according to industrial needs and based-on the development of the country. The establishments of Malaysian Polytechnic Entrepreneurship Centre (MPEC) become a great achievement for polytechnic education system in Malaysia. The findings will draw a clearer understanding and better picture of the common features exist in what seems to be a fragmented field of study.
Strategy implementation challenges in albanian organizationsAlexander Decker
This document summarizes a study on strategy implementation challenges faced by Albanian organizations. It provides background on the economy and business environment in Albania. Key points include:
30
European Journal of Business and Management
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.5, No.28, 2013
www.iiste.org
1) Small and medium enterprises dominate the Albanian economy, though a small number of large enterprises employ nearly half of workers and generate most turnover and investments.
2) Strategic management was rarely used under the previous centralized system but is now important for companies to adapt to the new competitive environment.
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This document examines the effect of digital marketing on the performance of micro, small and medium enterprises (MSMEs) in Kenya. It discusses how MSMEs significantly contribute to employment, GDP and economic development in Kenya. However, many MSMEs struggle with low performance and high failure rates. The study aims to determine if digital marketing techniques like mobile phone marketing, social media marketing and internet marketing can improve MSME performance. A conceptual framework is presented showing how these digital marketing tools may positively impact customer base, sales and profits. The dynamic capabilities theory provides the theoretical background for expecting digital marketing to enhance MSME competitiveness and performance in dynamic business environments.
This document examines the effect of digital marketing on the performance of micro, small and medium enterprises (MSMEs) in Kenya. It discusses how MSMEs significantly contribute to employment, GDP and economic development in Kenya. However, many MSMEs struggle with low performance and high failure rates. The study aims to determine if digital marketing techniques like mobile phone marketing, social media marketing and internet marketing can improve MSME performance. A conceptual framework is presented showing how these digital marketing tools may positively impact customer base, sales and profits. The dynamic capabilities theory provides the theoretical background for expecting digital marketing to enhance MSME competitiveness and performance over time.
This document examines the effect of digital marketing on the performance of micro, small and medium enterprises (MSMEs) in Kenya. It discusses how MSMEs significantly contribute to employment, GDP and economic development in Kenya. However, many MSMEs struggle with low performance and high failure rates. The study aims to determine if digital marketing techniques like mobile phone marketing, social media marketing and internet marketing can improve MSME performance. A conceptual framework is presented showing how these digital marketing tools may positively impact customer base, sales and profits. The dynamic capabilities theory provides the theoretical background for how firms can adapt to changing environments to maintain competitive advantage.
The document summarizes a study that investigated the key success factors of micro, small, and medium entrepreneurs. The study surveyed 60 entrepreneurs using questionnaires. The results suggest that finance management, availability of customers, and family support positively and significantly impact entrepreneurial success in business. Most respondents were aged 25-35, had a bachelor's degree or secondary education, and owned sole proprietorships with 1-10 employees.
Determining factors in the closure of MSMEs in the municipality of San Pedro ...IRJET Journal
This document analyzes factors contributing to the closure of micro, small, and medium enterprises (MSMEs) in the municipality of San Pedro Cholula, Mexico. It compares the innovation strategies of open versus closed businesses through surveys administered to 416 open businesses and 127 closed businesses. The results show statistically significant differences in the means for items related to organizational innovation, incorporating customer suggestions into new products/services, participating in business events, and offering innovative products/services to stand out in the market. These factors may influence whether businesses remain open or are forced to close.
This document examines the effect of digital marketing on the performance of micro, small and medium enterprises (MSMEs) in Kenya. It discusses how MSMEs play an important role in economies by creating jobs and contributing to GDP. However, many MSMEs in Kenya struggle with poor performance and high failure rates. The study aims to determine if digital marketing tools like the internet, social media, and mobile phones can help improve MSME performance. A literature review presents past studies that found positive relationships between digital marketing and business performance. The conceptual framework proposes that digital marketing tools will increase customer base, sales, and profitability of Kenyan MSMEs. The dynamic capabilities theory guides the study by suggesting firms must adapt to changing environments
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This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
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The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
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Sustainability 11-03811
1. sustainability
Article
Role of Social and Technological Challenges in
Achieving a Sustainable Competitive Advantage
and Sustainable Business Performance
Muhammad Haseeb 1 , Hafezali Iqbal Hussain 1 , Sebastian Kot 2,3,* ,
Armenia Androniceanu 4,5 and Kittisak Jermsittiparsert 6
1 Taylor’s Business School, Taylor’s University Lakeside Campus, 1 Jalan Taylors, Subang Jaya 47500, Malaysia
2 Faculty of Economic and Management Sciences, North-West University, Vaal Triangle Campus,
P.O. Box 1174, Vanderbijlpark 1900, South Africa
3 The Management Faculty, Czestochowa University of Technology, 42.201 Czestochowa, Poland
4 Administration and Public Management Faculty, The Bucharest University of Economic Studies,
Piat, a Romană, 6 010374 Bucures, ti, Romania
5 -Research Department, University of Social Sciences, 9 Sienkiewicza St., 90-113 Łód´z, Poland
6 Social Research Institute, Chulalongkorn University, Bangkok 10330, Thailand
* Correspondence: sebacat@zim.pcz.czest.pl; Tel.: +48-34-3250-345
Received: 17 May 2019; Accepted: 17 June 2019; Published: 11 July 2019
Abstract: In the postmodern era of industrialization, sustainable business performance is vital
for success in a competitive environment. In order to attain sustainable business performance,
Malaysian Small and Medium-sized Enterprises (SMEs) are facing various social and technological
challenges. The objective of this study was to examine the roles of social and technological challenges in
achieving a sustainable competitive advantage and sustainable business performance. To accomplish
this objective, first-hand data were collected from Malaysian SMEs. Opinions of managerial staff of
these SMEs were preferred regarding the roles of social and technological challenges in achieving
a sustainable competitive advantage and sustainable business performance. An email survey was
carried out to collect data. A total of 500 questionnaires were distributed among managerial staff
of SMEs. Questionnaires were distributed by using simple random sampling. By using structural
equation modeling, findings of the study revealed that social and technological challenges played major
roles in boosting sustainable competitive advantage and sustainable business performance. Moreover,
strategic alignment was a key in reflecting the positive roles of social and technological factors on
sustainable competitive advantage. Findings of the study are beneficial for practitioners and will allow
their strategies to reflect sustainable competitive advantages and sustainable business performance.
Keywords: social challenges; technological challenges; strategy alignment; competitive advantage;
sustainable business performance
1. Introduction
In the postmodern era of industrialization, sustainable performance is vital for success in
a competitive environment [1–3]. In the last decade, it has been a key goal of every organization [4,5].
There has been growing interest in the usage of a decision-making framework to accomplish
sustainability goals in the current decade [6,7] because it is the most important part of every organization
to achieve success in their objectives [8].
Sustainable performance can be defined as the harmonization of financial, social,
and environmental purposes in the delivery of fundamental business actions in order to maximize
value. It is the performance of a corporation in all dimensions as well as for all drivers of corporate
Sustainability 2019, 11, 3811; doi:10.3390/su11143811 www.mdpi.com/journal/sustainability
2. Sustainability 2019, 11, 3811 2 of 23
sustainability [9]. Sustainable performance plays a key role in the sustainability of Small and
Medium-sized Enterprises (SMEs) [10–14].
SMEs are the major sector of every country. It has important roles in the Gross Domestic Product
(GDP) of every country [15,16]. Increases in GDP improve economic growth. In the case of Malaysian
SMEs, this sector has an influencing role on the economic growth of Malaysia [17]. The Malaysian
government has been trying to enhance the economic contribution of SMEs to the nation’s economy.
In recent years, Malaysian SMEs recorded significant contributions to the economy.
It is evident from Figure 1 that Malaysian SMEs are a major contributor to GDP. SME GDP
was recorded as RM 435.1 billion (1 USD is approximately RM 4.00) in 2017, in which the service
sector had major contributions (which was 59.7%) followed by the manufacturing sector (which had
2.5% contribution). Moreover, agriculture had 11.2% contribution, the construction sector had 5.8%
contribution, important duties had 1.4%, and mining had 0.4% contribution to Malaysian SME GDP.
Therefore, it is evident that Malaysian SMEs are crucial in increasing economic growth.
Sustainability 2019, 11, x FOR PEER REVIEW 2 of 23
Sustainability 2019, 11, x; doi: FOR PEER REVIEW www.mdpi.com/journal/sustainability
It is the performance of a corporation in all dimensions as well as for all drivers of corporate
sustainability [9]. Sustainable performance plays a key role in the sustainability of Small and
Medium-sized Enterprises (SMEs) [10–14].
SMEs are the major sector of every country. It has important roles in the Gross Domestic Product
(GDP) of every country [15,16]. Increases in GDP improve economic growth. In the case of Malaysian
SMEs, this sector has an influencing role on the economic growth of Malaysia [17]. The Malaysian
government has been trying to enhance the economic contribution of SMEs to the nation’s economy.
In recent years, Malaysian SMEs recorded significant contributions to the economy.
It is evident from Figure 1 that Malaysian SMEs are a major contributor to GDP. SME GDP was
recorded as RM 435.1 billion (1 USD is approximately RM 4.00) in 2017, in which the service sector
had major contributions (which was 59.7%) followed by the manufacturing sector (which had 2.5%
contribution). Moreover, agriculture had 11.2% contribution, the construction sector had 5.8%
contribution, important duties had 1.4%, and mining had 0.4% contribution to Malaysian SME GDP.
Therefore, it is evident that Malaysian SMEs are crucial in increasing economic growth.
Figure 1. Percentage share of Small and Medium-sized Enterprises (SMEs) GDP and Malaysian GDP
in 2017 [16].
However, Malaysian SMEs face various social and technological challenges. The term
"challenge" can be described as the call to prove or justify something by companies in a competitive
environment. In the context of the current study, since it is tough to survive in a competitive
environment, it is a challenge for SMEs to handle technological challenges. To achieve success in a
highly competitive environment, one of the challenges for SMEs is to adopt new technologies. Social
challenges include social responsibility as well as values and beliefs. Negative values in companies,
unconstructive beliefs of employees, and resistance to change or adoption of new technologies are
due to fear of complexity in utilizing the latest technology and an absence of confidence among
employees to utilize new technology to improve business performance [18]. Negative values and
beliefs impact adversely on a sustainable, competitive advantage, which ultimately decreases
sustainable business performance. Moreover, social responsibility is another challenge to companies
in achieving smooth performance [19–22]. SMEs need to ensure better corporate responsibility to
handle the growing challenges of social issues to enhance sustainable, competitive advantages; this
is an important role in SME performance [23,24].
In an organization, culture is the mixture of manager perceptions regarding any problem, which
is one of the important challenges. For instance, if managers of an organization do not trust that
information technology (IT) is strategic, this will reflect how they accomplish as well as deal with IT
and IT challenges [25,26]. Therefore, IT managerial resources are the most crucial challenge. It belongs
to the level of participation from IT executives and business in negotiation of contract, vendor
selection, management, and implementation of IT projects. Along with the IT managerial resources,
Figure 1. Percentage share of Small and Medium-sized Enterprises (SMEs) GDP and Malaysian GDP
in 2017 [16].
However, Malaysian SMEs face various social and technological challenges. The term “challenge”
can be described as the call to prove or justify something by companies in a competitive environment.
In the context of the current study, since it is tough to survive in a competitive environment, it is
a challenge for SMEs to handle technological challenges. To achieve success in a highly competitive
environment, one of the challenges for SMEs is to adopt new technologies. Social challenges include
social responsibility as well as values and beliefs. Negative values in companies, unconstructive beliefs
of employees, and resistance to change or adoption of new technologies are due to fear of complexity in
utilizing the latest technology and an absence of confidence among employees to utilize new technology
to improve business performance [18]. Negative values and beliefs impact adversely on a sustainable,
competitive advantage, which ultimately decreases sustainable business performance. Moreover,
social responsibility is another challenge to companies in achieving smooth performance [19–22].
SMEs need to ensure better corporate responsibility to handle the growing challenges of social issues
to enhance sustainable, competitive advantages; this is an important role in SME performance [23,24].
In an organization, culture is the mixture of manager perceptions regarding any problem, which is
one of the important challenges. For instance, if managers of an organization do not trust that
information technology (IT) is strategic, this will reflect how they accomplish as well as deal with
IT and IT challenges [25,26]. Therefore, IT managerial resources are the most crucial challenge.
It belongs to the level of participation from IT executives and business in negotiation of contract,
vendor selection, management, and implementation of IT projects. Along with the IT managerial
resources, IT implementation success is crucial, which is another challenge. Adoption of new
technology is always difficult [27–29]. Therefore, SMEs face various social and technological challenges
3. Sustainability 2019, 11, 3811 3 of 23
such as social responsibility, values and beliefs, IT managerial resource and IT implementation
success. Better handling of these challenges increases the sustainable competitive advantage.
Sustainable competitive advantage improves sustainable business performance [30–32].
The motivation of the study centers around the above challenges as the current study focuses on
providing the solution of these challenges facing by the SMEs. Because of the technological challenges,
it has a vital role in attaining competitive advantage, it is also essential to achieve higher performance.
In the same direction, this is one of the pioneer studies, which highlights social responsibility, values and
beliefs, IT managerial resource and IT implementation success as the important technological challenges
in SMEs. This is one of the pioneer studies that highlights technological challenges can be resolved
through various factors. These factors playing the role in line with resource-based view (RBV)
mechanism, shown in Figure 2. All the factors are addressed in Figure 3.Sustainability 2019, 11, x FOR PEER REVIEW 4 of 23
Figure 2. Resource-Based View (RBV).
In addition, the RBV centres around the match between organizational capabilities and available
opportunities. This clarifies the disappointment of visual failure of organizational systems. It turns
out to be genuine where there is a mismatch between organizational capabilities and opportunities.
In the present study, social and technological challenges are the resources of SMEs. Better
management of social responsibility, better values and beliefs of employees, IT managerial resources
and better IT implementation are the resources of the company. These resources are increasing the
sustainable competitive advantage among SMEs.
Alluding to the consequences of asset-based perspective of the firm, it accentuates on the
significance of resources for making and supporting competitive advantage. In this manner,
organizations ought to have the potential for distinguishing and making appropriate utilization of
their accessible asset [42]. Further to this, Barney [43] referenced that the inward and outer condition
both have been significantly underscored. Consequently, organizations ought to get most refreshed
data identified from candidates, markets and clients. In conclusion, the third consequence of RBV on
organizational success is for organizational capabilities. The organizational capabilities incorporate
people with specific range of abilities and experience, data and process, in case, if ultimately used can
deliver creative results with high quality for surpassing client desires [44]. Likewise, it is entrenched
that the organizational capabilities upgrade the esteem of accessible asset for their viable use [45,46].
As per Teece, Pisano and Shuen [39] the sustainable competitive advantage creation links with a
Figure 2. Resource-Based View (RBV).
Therefore, the objective of this study is to examine the role of social and technological challenges in
sustainable competitive advantage and sustainable business performance. Various researchers examine
sustainable business performance with different aspects [33–37]. However, most of the studies are
missing the role of social and technological challenges of sustainable business performance. Figure 3
shows that how social and technological challenges play roles in achieving a sustainable competitive
advantage and sustainable business performance. Thus, the current study is one of the attempts to
address this literature gap. Additionally, the sub-objectives are as follows:
1. To examine the role of social responsibility in sustainable competitive advantage.
2. To examine the role of values and beliefs in sustainable competitive advantage.
3. To examine the role of IT managerial resources in sustainable competitive advantage.
4. To examine the role of IT implementation success in sustainable competitive advantage.
5. To examine the mediating role of strategic alignment.
4. Sustainability 2019, 11, 3811 4 of 23
6. To examine the role of sustainable competitive advantage in sustainable business performance.
The current study contributes to existing knowledge by investigating the roles of social and
technological challenges in achieving a sustainable competitive advantage and sustainable business
performance. It investigated that strategic alignment is one of the significant factors to transform the
positive effect of social and technological elements on sustainable competitive advantage. It contributed
to the literature that strategic alignment is an essential factor to take maximum benefit from new
technology and social factors. This study provides a comprehensive framework to enhance SMEs
performance with the help of resolving social and technological challenges.
Sustainability 2019, 11, x FOR PEER REVIEW 5 of 23
Sustainability 2019, 11, x; doi: FOR PEER REVIEW www.mdpi.com/journal/sustainability
high-quality results, for example, enhanced business success and different advancements [44].
Corporate enterprise is a procedure, and it has stable connection with the human resource that at last,
helps organizations to enhance their sustainable business performance.
Essentially, the objective of this study is to examine the roles of social and technological
challenges in achieving a sustainable competitive advantage and sustainable business performance.
In consistent with RBV, social and technological factors are the resources of a company, which
influence positively on sustainable competitive advantage, and ultimately increase the sustainable
business performance. These variables have been underpinned by the RBV theory, as suggested in
the literature, shown in Figure 3.
Figure 3. Theoretical framework of social and technological challenges in sustainable competitive
advantage and sustainable business performance.
According to RBV, the key features in determining the sustainable competitive advantage for an
organization are its resources, both internal as well as external [40]. These rare, valuable, and
inimitable intangible strategic resources are the engine for creating as well as sustaining competitive
advantage. Because of these unique resources, a firm becomes proficient enough for producing as
well as delivering innovative and high-quality products and services, and it creates a difference [41].
Moreover, the RBV emphasizes the available match between organizational capabilities as well as
opportunities. This clarifies that the failure for blind imitation of organizational strategies becomes
true where there is a mismatch between organizational capabilities and existing opportunities.
Makadok [42] described that the essence of RBV process is to consider the use of resources at the
completest to build up the unique core competencies for the accomplishment of competitive
advantage. For attaining the desired competitive strategic position, firms can develop their
competencies by observing into factors such as human competencies, internal organizational
strategies, regulations as well as suitable information sources [41]. In the context of this study, IT
implementation, IT managerial resource, social responsibility, values and beliefs are the core
competencies of any organization for a competitive advantage, which is crucial for sustainable
business performance.
2.2. Hypotheses Development
The success of any businesses depends on having some advantages compared to their
competitors. Therefore, the key objective of strategy is to attain a competitive advantage as well as
performance [49,50]. For achieving this goal, specific strategies and challenges, such as social
responsibility, values and beliefs, IT managerial resources, IT implementation success and strategy
alignment to gain a competitive advantage in a competitive environment are needed. In any case,
regardless of whether businesses are competent to pick up a competitive advantage and accomplish
Figure 3. Theoretical framework of social and technological challenges in sustainable competitive
advantage and sustainable business performance.
2. Literature Review
2.1. Resource-Based View (RBV)
The Resource-Based View (RBV) perceives that its resources fundamentally control
an organization’s success. These resources are named assets or capabilities. The assets can be tangible or
intangible [38], though the capabilities are intangible, including abilities and information [39]. Besides,
the capital equipment, learning and abilities of representatives, and firm goodwill are the resources
of a firm [40]. As indicated by RBV, the principal factors in deciding the sustainable competitive
advantage for a firm are its resources [40]. These general important and rare intangible resources are
vital for making and keeping up a competitive advantage. Because of these particular resources, a firm
progresses towards sufficiently proficient for creating and conveying creative as well as top-notch
items and administrations, and it also makes a distinction among other company’s products [40,41].
RBV is given in Figure 2, which shows that resources are based on tangible and intangible, which must
be heterogeneous and immobile. These resources finally influence competitive advantage.
In addition, the RBV centres around the match between organizational capabilities and available
opportunities. This clarifies the disappointment of visual failure of organizational systems. It turns
out to be genuine where there is a mismatch between organizational capabilities and opportunities.
In the present study, social and technological challenges are the resources of SMEs. Better management
of social responsibility, better values and beliefs of employees, IT managerial resources and better
IT implementation are the resources of the company. These resources are increasing the sustainable
competitive advantage among SMEs.
Alluding to the consequences of asset-based perspective of the firm, it accentuates on the
significance of resources for making and supporting competitive advantage. In this manner,
5. Sustainability 2019, 11, 3811 5 of 23
organizations ought to have the potential for distinguishing and making appropriate utilization
of their accessible asset [42]. Further to this, Barney [43] referenced that the inward and outer condition
both have been significantly underscored. Consequently, organizations ought to get most refreshed
data identified from candidates, markets and clients. In conclusion, the third consequence of RBV on
organizational success is for organizational capabilities. The organizational capabilities incorporate
people with specific range of abilities and experience, data and process, in case, if ultimately used can
deliver creative results with high quality for surpassing client desires [44]. Likewise, it is entrenched that
the organizational capabilities upgrade the esteem of accessible asset for their viable use [45,46]. As per
Teece, Pisano and Shuen [39] the sustainable competitive advantage creation links with a dynamic
process for organizations to develop and get the dynamic business condition. Therefore, this sustainable
competitive advantage increases sustainable business performance among SMEs with the help of
internal resources, including social and technological factors. Additionally, it is recommended that
the improvement of dynamic capabilities procedures need to be founded on the learning along with
organizational learning exercises [47,48].
Further to this, one of the complications of RBV on business success is identified with
organizational capabilities. The organizational capabilities include human asset (that are skilled, capable,
and experienced), data, and specific procedures that could be responsively used to deliver high-quality
results, for example, enhanced business success and different advancements [44]. Corporate enterprise
is a procedure, and it has stable connection with the human resource that at last, helps organizations to
enhance their sustainable business performance.
Essentially, the objective of this study is to examine the roles of social and technological challenges
in achieving a sustainable competitive advantage and sustainable business performance. In consistent
with RBV, social and technological factors are the resources of a company, which influence positively
on sustainable competitive advantage, and ultimately increase the sustainable business performance.
These variables have been underpinned by the RBV theory, as suggested in the literature, shown in
Figure 3.
According to RBV, the key features in determining the sustainable competitive advantage
for an organization are its resources, both internal as well as external [40]. These rare, valuable,
and inimitable intangible strategic resources are the engine for creating as well as sustaining competitive
advantage. Because of these unique resources, a firm becomes proficient enough for producing as
well as delivering innovative and high-quality products and services, and it creates a difference [41].
Moreover, the RBV emphasizes the available match between organizational capabilities as well as
opportunities. This clarifies that the failure for blind imitation of organizational strategies becomes
true where there is a mismatch between organizational capabilities and existing opportunities.
Makadok [42] described that the essence of RBV process is to consider the use of resources at the
completest to build up the unique core competencies for the accomplishment of competitive advantage.
For attaining the desired competitive strategic position, firms can develop their competencies by
observing into factors such as human competencies, internal organizational strategies, regulations as
well as suitable information sources [41]. In the context of this study, IT implementation, IT managerial
resource, social responsibility, values and beliefs are the core competencies of any organization for
a competitive advantage, which is crucial for sustainable business performance.
2.2. Hypotheses Development
The success of any businesses depends on having some advantages compared to their competitors.
Therefore, the key objective of strategy is to attain a competitive advantage as well as performance [49,50].
For achieving this goal, specific strategies and challenges, such as social responsibility, values and
beliefs, IT managerial resources, IT implementation success and strategy alignment to gain a competitive
advantage in a competitive environment are needed. In any case, regardless of whether businesses
are competent to pick up a competitive advantage and accomplish a more elevated amount of
6. Sustainability 2019, 11, 3811 6 of 23
profitability, they lose this competitive advantage after some time. This is because their systems are
generally duplicated.
Accomplishing a competitive advantage empowers a firm to raise effective obstructions and
accomplish a sustainable competitive advantage [51]. In any case, anticipating imitation does not
keep going forever. Along these lines, the firm will pick up the greatest profit by any competitive
advantages. Accomplishing better development basically needs specific core values. The entrance to
some competitive advantage would be essential for building this solid and separated centre [52].
As indicated by Prahalad and Hamel [46], “similar formidable” standards for item cost and
quality combine to that of Western and Japanese organizations. These standards are increasingly
imperative as qualifying criteria for success in the rivalry and imperative as sources of sustainable
competitive advantage. They further recommend that the genuine wellspring of sustainable competitive
advantage is identified with an organization’s capacity to unite innovations and aptitudes generation in
abilities that enable the business to adjust rapidly to growing openings. Kanterholds [53,54] proposed
that organizations must constantly concentrate on their skills, put resources into improvement,
and de-underline exercises that do not add value. Therefore, they will be fruitful. Achievement in
changing the conditions is ensured by characterizing the capabilities and sorting out it to help and
expand them.
Onkvisit and Shaw [55] argue that organization in the previous decades had contributed to turning
into lean and adaptable to react quickly to condition and market changes. They likewise benchmarked
continuously to accomplish the best practice and outsourced to accomplish efficiencies. The companies
are prominent for inferring competitive advantage by operational adequacy. These ventures have
blown-up in securing sustainable competitive advantage despite the fact that they have prevailed with
regards to accomplishing operational enhancements, effectiveness and competitive advantage [55].
To gain sustainable competitive advantage, social responsibility, values and beliefs, IT managerial
resources, IT implementation success and strategy alignment are needed.
Various researchers work on the social responsibility of companies [56–61]; however, these studies
misses with the roles of achieving a competitive advantage and sustainable business performance. It is
found that the social responsibility of organization affects sustainable competitive advantage [62–65].
Better social responsibility achievement increases the competitive advantage of companies. However,
lose control of social responsibility decreases the competitive advantage.
While the job of business, society continues changing after some time, there has been no
concurrence on what social responsibility remains among the spectators or to what degree is the limit
of social responsibility as it is interpreted differently by individuals. What social responsibility shows,
among experts that actualizes it inside their organizations contrasts from what it intends to experts
trying to establish it as a discipline [66].
Organization’s responsibilities in creating nations are characterized distinctively dependent on
the social (particularly national setting) [66]. For instance, social responsibility among organizations in
Malaysia is halfway persuaded by religious conviction [66], in Argentina, it is halfway impacted by the
monetary emergency in 2001 [67], while corporate social responsibility in South Africa centre around
the issues of racial imbalance because of the one of a kind inheritance of politically-sanctioned racial
segregation. Malaysian organizations generally centre on beneficent exercises that revolve around the
Muslim and Chinese religious occasions, while South African nations centre on the strengthening of
the black individuals of the country. Thus, it may be said that corporate social responsibility or social
responsibility implies distinctive things to various individuals from various countries [66]. All these
factors have significant influence to gain or sustain competitive advantage.
Despite the fact that no universal definition has been available for social responsibility,
yet numerous private organizations allude to social responsibility as an approach to coordinate
the ecological, social and the monetary complications of their business exercises in the regularly
developing business world [68,69]. Therefore, it ends up obvious for business organizations to
be dependable to stay current, and it participates in-light of the differed partners. In the present
7. Sustainability 2019, 11, 3811 7 of 23
time of modern globalization, companies and business organizations have gone past the restriction
of their country state and this prevalence of the global organization past the restriction of their
country has brought about an increment in the interest for greater responsibility and straightforward
worldwide business [68].
Business organizations challenge to react to a trustworthy responsibility agenda [68].
Globalization and the challenge for restricted resources have kept corporate social responsibility
in the focal point of discussion among business network and Government. Numerous advocates
were guaranteed in the talk on corporate social responsibility in the western world, where it is
guaranteed that corporate social responsibility is not a greater amount of corporate philanthropy, it
is fairly an essential logic for extensive, medium and little ventures to gain comparative advantage
and sustainable business performance among various companies [68]. Various studies proved that
social responsibility has important roles in achieving a sustainable competitive advantage [70,71].
In line with social responsibility, values and beliefs are equally important in achieving sustainable
competitive advantage.
Values and beliefs are important roles to gain sustainable competitive advantage, and these are
the challenges in SMEs. The values and beliefs of organizational individuals tremendously affect
numerous measurements of IT in organizations. These incorporate the method for overseeing IT
in organizations. For instance, if business administrators do not trust that IT is strategic this may
characterize how they oversee and manage IT-related issues [72]. This measurement is a point of worry
about the values and beliefs of organizational members because it influences in achieving a sustainable
competitive advantage. Values and beliefs can fundamentally shape the career, including conduct
and practices. These beliefs are moulded all through one’s profession dependent on the experience
which one has with IT. Real impacts are probably going to originate from experience with IT both from
past work environments and from current industry or the organization. Values and beliefs ought not
to be mistaken for culture. While the idea of culture is present in the administration classification,
actually begins from human conduct [73–76]. Culture is an idea which includes values and beliefs, yet it
is additionally moulded by stories, control frameworks, structures, and legislative issues. These culture
issues have vital role in shaping competitive advantage. Singular values and beliefs are, for sure,
a sufficient power to affect competitive advantage. Therefore, IT issues have a relationship with values
and beliefs [26] and competitive advantage.
Thus, better values and beliefs have the ability to resolve various IT challenges. Values and beliefs
are one of the challenges in proper IT implementation. An attitude of organization towards new
technology adoption has important challenge [77]. There values and beliefs belong to the culture of
organization. Culture of the organization has a significant link with technological adoption in which
attitude has essential role and has an important link with achieving a competitive advantage [78–81].
H1: There is a relationship between social responsibility and sustainable competitive advantage.
H2: There is a relationship between values and beliefs and sustainable competitive advantage.
SMEs are also facing new technological challenges including IT managerial resources and IT
implementation success. Good managerial resources for IT are vital to implement new technology,
which is a challenge among most of the companies. This antecedent concerns the dimension of
the association from business and IT managers in seller determination, contract transaction and the
executives, and the structure as well as usage of the IT projects. Freeman and Sharp [82] expressed
that IT achievement, for the most part, reflects a successful connection between business supervisors
and IT, and it is the principal supporter of effective seller relations. Chan et al. [83] clarified that IT
partners are bound to be trusted and counselled in the basic leadership process. They turn out to be
increasingly mindful of both existing and new business openings and have the reasonable learning
not merely in working inside existing markets, yet also with a recently developing business sector
which has an impact on competitive advantage. A prior examination by Boynton et al. [84] surveyed
8. Sustainability 2019, 11, 3811 8 of 23
administrative IT learning of the business’ tasks and systems, found that more elevated amounts of
administrative IT information emphatically anticipated a higher utilization of IT resources.
Better IT managerial resources have the ability to apply technology, which increases the competitive
advantage, as it is proved from the literature that IT managerial resources, including IT skills,
have a positive effect on competitive advantage [85]. IT managerial resources are based on human
resources and human resources have major roles in achieving a competitive advantage [86–90].
Additionally, IT implementation is crucial. Implementation of new technology is more important when
compared to simply introduce new technology.
Most of the companies are facing the issues while implementing a successful IT unit. Successful
history of IT unit offers reliability to the IT unit and makes a complementary view of IT in the
best administration [91–93]. Likewise, it basically adds to the contribution of business directors in
the arranging procedure [94]. For the arrangement of business designs, two vital critical success
factors found those are the confirmation of best administration in the IT division, and dependable
administrations [95]. Teo and Ang [95] hypothesized that confirmation of best administration in IT
builds their commitment to the strategic utilization of IT, making them bound to distribute appropriate
asset for the arranging and improvement of IT applications.
H3: There is a relationship between IT managerial resources and sustainable competitive advantage.
H4: There is a relationship between IT implementation success and sustainable competitive advantage.
Consistent with social and new technological challenges, strategic alignment is one of the
procedures and the outcome of connecting an organization’s structure as well as resources with its
strategy and certain business environment. Strategic alignment comprises of matching skills to achieve
certain goals regarding the plan of organization. It is a comprehensive procedure, which includes
strategy, people, rewards and structure. It is a process which in line the organization structure with
the business model that has a significant link with achieving a sustainable competitive advantage.
Strategic alignment is shown in Figure 4.
The alignment between the business strategy and its strategic decisions is a noticeable area of
intention that stays on a high priority business, IT issues in which business and IT executives suffer [96].
IT-business strategic alignment is viewed as a very imperative issue especially when IT turns into
a fundamental piece of the business and is used for the utilization of unique business capabilities,
consolidate organizations, rebuild businesses, and facilitate worldwide competition [72].
Today’s Businesses are confronting a consistently expanding competition both at the local and
worldwide level. Thus, it turns into a basic necessity for an organization to comprehend the nature
of making a competitive advantage. A few researchers [97,98] showed that the literature proposes
that the organizations could be competitive just if there is an alignment between the business and
data innovation of the organizations. Therefore, alignment of strategies is most important to gain
competitive advantage.
Various social and technological challenges in SMEs such as social responsibility, values and
beliefs, IT managerial resources and IT implementation success can be managed through proper
strategy alignment. IT managerial resources and IT implementation success challenge can be managed
by allocating skilled people, and social issues can also be handled with aligning better strategies,
which automatically increases the sustainable competitive advantage. As it is proved by different studies
that strategic alignment and sustainable competitive advantage have a significant relationship [99–102].
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Consistent with social and new technological challenges, strategic alignment is one of the
procedures and the outcome of connecting an organization's structure as well as resources with its
strategy and certain business environment. Strategic alignment comprises of matching skills to
achieve certain goals regarding the plan of organization. It is a comprehensive procedure, which
includes strategy, people, rewards and structure. It is a process which in line the organization
structure with the business model that has a significant link with achieving a sustainable competitive
advantage. Strategic alignment is shown in Figure 4.
Figure 4. Strategic Alignment.Figure 4. Strategic Alignment.
In line with the above lines, increases in sustainable competitive advantage directly improve
sustainable business performance. Literature suggested that companies should focus on competitive
advantage in a competitive environment with a sustainable business performance at a satisfactory level.
As it is found by various studies that sustainable competitive advantage has a significant relationship
with sustainable business performance [103–105]. Therefore, from the above discussion, the following
hypotheses are proposed;
H4: There is a relationship between social responsibility and strategy alignment.
H5: There is a relationship between values and beliefs and strategy alignment.
H6: There is a relationship between IT managerial resources and strategy alignment.
H7: There is a relationship between IT implementation success and strategy alignment.
H8: Strategy alignment mediates the relationship between social responsibility and sustainable competitive advantage.
H9: Strategy alignment mediates the relationship between values and beliefs, and sustainable competitive advantage.
H10: Strategy alignment mediates the relationship between IT managerial resources and sustainable
competitive advantage.
H11: Strategy alignment mediates the relationship between IT implementation success and sustainable
competitive advantage.
H12: There is a relationship between strategy alignment and sustainable competitive advantage.
H13: There is a relationship between sustainable competitive advantage and sustainable business performance.
3. Methodology
The present study implemented a quantitative research approach for measuring the structural
relationship among various proposed latent variables. Using PLS-SEM under SmartPLS 3.0 (Developed
10. Sustainability 2019, 11, 3811 10 of 23
by: Christian M. Ringle, Sven Wende, Jan-Michael Becker; Hamilton, New Zealand) thirteen hypotheses
were developed based on RBV theory. The research design based on cross-sectional was implemented
in the study in which the data were collected once. This process was followed with the help of
data analysis as well as statistical understandings while making inferences related to the particular
population to conduct the present study at one point in time. Thus, the present study preferred to use
cross-sectional research design rather than longitudinal because of the reason of resource constraints
such as money and time [106,107].
The managerial staff of these SMEs was preferred to get an opinion regarding the roles of social and
technological challenges in achieving a sustainable competitive advantage and sustainable business
performance. An email survey was preferred to collect the data. First of all, the email addresses were
collected from SMEs. Questionnaires were sent to them via email. A brief introduction of the study
covering the objective was also attached in email. It was insured to them that the response will remain
confidential and will be used for this research study.
Total of 500 questionnaires was sent to the managerial employees of Malaysian SMEs. From these
questionnaires, 190 were returned, and 8 questionnaires were incomplete. Thus, 8 questionnaires were
excluded from the study and 182 were used to analyse the collected data. The response rate is shown
in Table 1. The total response rate is 36.4%. According to Sekaran and Bougie [108,109], a 30% response
rate is sufficient in case of email survey.
Table 1. Response from respondents.
Response Frequency/Rate
Questionnaires distributed 500
Questionnaires returned 190
Valid questionnaires 182
Response rate 38%
Response rate after data entry 36.4%
Measures
All the measures were adapted from previous studies. Scale for values and belief was adapted
from Grindley [110], and it is measured with the help of six items. Strategic alignment measures
were adapted from Pierce [111] and measured with six items. Moreover, IT implementation success
measured with the help of five items, which were adapted from Sabherwal and Kirs [112]. Six items
were used to measure sustainable competitive advantage and adapted from De Villiers [113]. Items for
IT managerial resource was adapted from Nelson and Cooprider [114]. Items for corporate social
responsibility were adapted from Hamid and Atan [115]. Finally, measures for sustainable business
performance were adapted from Nawanir [116]. The operationalization of all the variables is shown in
the Appendix A in which all the scale items are provided.
4. Research Analysis and Results
It is indicated by Chin and Newsted [117] PLS is appropriate for research where (a) the theoretical
model is new or not very much framed (b) the model is generally complex with various variables
as well as structural paths. It is likewise helpful when the objective of the research is to predict
relationships. The PLS path modeling [117,118] has been utilized in the present investigation using
Smart PLS 3.0 [119]. The present study considered that PLS is appropriate for different reasons.
Because PLS is like conventional regression procedure, it offers an advantage to assess the connection
between variables (structural model) and the relationship among constructs (the measurement model)
at the same time [120–122].
11. Sustainability 2019, 11, 3811 11 of 23
By considering the above recommendations, this study has used PLS-SEM to achieve the
major objective of this study. PLS-SEM is based on different steps which are recommended by
Henseler et al. [123], and all these steps are compiled by Hameed et al. [124] as shown in Figure 5.
Confirmatory factor analysis (CFA) is shown in Figure 6. In statistics, confirmatory factor analysis
(CFA) is a special form of factor analysis, most commonly used in social sciences research. It is
used to test whether measures of a construct are consistent with a researcher’s understanding of
the nature of that construct (or factor). As such, the objective of confirmatory factor analysis is to
test whether the data fit a hypothesized measurement model. It is found that all the items have
factor loadings above 0.5, as suggested by Hair et al. [125]. Confirmatory factor analysis is shown
in Figure 6 and Table 2. Results of measurement model are shown in Tables 3 and 4. Table 3
depicts that all the constructs have composite reliability is above 0.7. It is evident that the average
variance extracted [47] is also higher than 0.5, which proves convergent validity, as suggested by
Hair Jr et al. [126]. Furthermore, heterotrait-monotrait ratio is used to test the discriminant validity,
which is shown in Table 4. While examining heterotrait-monotrait ratio, all the values should be less
than 0.9.
In the next step of PLS-SEM, the significance of structural Model was assessed. It is highlighted in
Figure 7. In this procedure, the bootstrapping technique with the help of PLS is utilized to examine the
beta value and t-value. Minimum 1.96 threshold level of t-value is considered to check the relationship
between independent and dependent variables. Figure 6 shows the direct effect of all variables,
including mediating variables. Table 5 highlights the results of direct hypotheses.Sustainability 2019, 11, x FOR PEER REVIEW 11 of 23
Figure 5. PLS-SEM Steps.
Confirmatory factor analysis (CFA) is shown in Figure 6. In statistics, confirmatory factor
analysis (CFA) is a special form of factor analysis, most commonly used in social sciences research. It
is used to test whether measures of a construct are consistent with a researcher's understanding of
the nature of that construct (or factor). As such, the objective of confirmatory factor analysis is to test
whether the data fit a hypothesized measurement model. It is found that all the items have factor
loadings above 0.5, as suggested by Hair et al. [125]. Confirmatory factor analysis is shown in Figure
6 and Table 2. Results of measurement model are shown in Table 3 and Table 4. Table 3 depicts that
all the constructs have composite reliability is above 0.7. It is evident that the average variance
extracted [47] is also higher than 0.5, which proves convergent validity, as suggested by Hair Jr et al.
[126]. Furthermore, heterotrait-monotrait ratio is used to test the discriminant validity, which is
shown in Table 4. While examining heterotrait-monotrait ratio, all the values should be less than 0.9.
Figure 5. PLS-SEM Steps.
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whether the data fit a hypothesized measurement model. It is found that all the items have factor
loadings above 0.5, as suggested by Hair et al. [125]. Confirmatory factor analysis is shown in Figure
6 and Table 2. Results of measurement model are shown in Table 3 and Table 4. Table 3 depicts that
all the constructs have composite reliability is above 0.7. It is evident that the average variance
extracted [47] is also higher than 0.5, which proves convergent validity, as suggested by Hair Jr et al.
[126]. Furthermore, heterotrait-monotrait ratio is used to test the discriminant validity, which is
shown in Table 4. While examining heterotrait-monotrait ratio, all the values should be less than 0.9.
Figure 6. Confirmatory Factor Analysis.Figure 6. Confirmatory Factor Analysis.
Table 2. Factor Loadings.
Variables Item ITI ITMR SA SBP SCA SR VB
ITI1 0.929
ITI2 0.899
ITI3 0.876
ITI4 0.89
ITI5 0.837
ITMR1 0.848
ITMR2 0.902
ITMR3 0.908
ITMR4 0.89
SA1 0.88
SA2 0.844
SA4 0.919
SA5 0.916
SA6 0.921
SBP1 0.768
SBP2 0.856
SBP4 0.871
SBP5 0.882
SCA2 0.906
SCA3 0.892
SCA4 0.847
SCA5 0.891
SCA6 0.925
SR1 0.89
SR2 0.898
SR3 0.902
SR4 0.896
SR5 0.914
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Table 2. Cont.
Variables Item ITI ITMR SA SBP SCA SR VB
SR6 0.885
VB1 0.91
VB2 0.86
VB3 0.925
VB4 0.899
VB5 0.917
VB6 0.861
Note: ITI = IT Implementation Success, SR = Social Responsibility, VB = Value and Belief, ITMR = IT
Managerial Resource, SA = Strategic Alignment, SCA = Sustainable Competitive Advantage, SBP = Sustainable
Business Performance.
Table 3. Reliability and Convergent Validity.
Variable α rho_A CV AVE
ITI 0.932 0.933 0.948 0.786
ITMR 0.91 0.911 0.937 0.787
SA 0.939 0.94 0.953 0.804
SBP 0.868 0.878 0.909 0.715
SCA 0.936 0.939 0.951 0.796
SR 0.952 0.953 0.961 0.806
VB 0.951 0.953 0.961 0.802
Note: ITI = IT Implementation Success, SR = Social Responsibility, VB = Value and Belief, ITMR = IT
Managerial Resource, SA = Strategic Alignment, SCA = Sustainable Competitive Advantage, SBP = Sustainable
Business Performance.
Table 4. Discriminant Validity.
Variable ITI ITMR SA SBP SCA SR VB
ITI
ITMR 0.766
SA 0.893 0.794
SBP 0.79 0.739 0.833
SCA 0.823 0.778 0.758 0.767
SR 0.764 0.878 0.755 0.692 0.737
VB 0.737 0.89 0.77 0.695 0.752 0.852
Table 5. Direct effect results.
Relationship β STDEV t-Statistics p-Values f2
ITI→SA 0.828 0.053 15.705 0.000 0.951
ITI→SCA 0.187 0.091 2.056 0.040 0.025
ITMR→SA 0.156 0.038 4.137 0.000 0.024
ITMR→SCA 0.082 0.082 4.697 0.000 0.004
SA→SCA 0.638 0.099 6.42 0.000 0.270
SCA→SBP 0.718 0.044 16.155 0.000 0.852
SR→SA 0.185 0.047 3.931 0.000 0.039
SR→SCA 0.023 0.011 2.16 0.039 0.001
VB→SA 0.179 0.052 3.472 0.003 0.034
VB→SCA 0.061 0.025 2.55 0.012 0.002
Note: ITI = IT Implementation Success, SR = Social Responsibility, VB = Value and Belief, ITMR = IT
Managerial Resource, SA = Strategic Alignment, SCA = Sustainable Competitive Advantage, SBP = Sustainable
Business Performance.
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In the next step of PLS-SEM, the significance of structural Model was assessed. It is highlighted
in Figure 7. In this procedure, the bootstrapping technique with the help of PLS is utilized to examine
the beta value and t-value. Minimum 1.96 threshold level of t-value is considered to check the
relationship between independent and dependent variables. Figure 6 shows the direct effect of all
variables, including mediating variables. Table 5 highlights the results of direct hypotheses.
Figure 7. Results for Direct Hypotheses Test.
Figure 7. Results for Direct Hypotheses Test.
The relationship between social responsibility and sustainable competitive advantage found
significant and positive with t-value 2.16 and β value 0.023. The relationship between values and
beliefs with sustainable competitive advantage found significant and positive with t-value 2.55 and β
value 0.061. Moreover, IT managerial resources also have a positive effect on sustainable competitive
advantage with t-value 4.137 and β value 0.156. Consistent with these results, the relationship of
IT implementation success and sustainable competitive advantage found t-value 2.056 and β value
0.187. Therefore, all these variables have a positive effect on sustainable competitive advantage.
Additionally, the direct effect of social responsibility, values and beliefs, IT managerial resources and IT
implementation has a significant positive effect on strategy alignment with t-value 3.931 and β value
0.185, t-value 3.472 and β value 0.179, t-value 4.137 and β value 0.156, t-value 15.705 and β value
0.828, respectively. In line with these findings, it is found that strategy alignment has positive roles in
achieving a sustainable competitive advantage with t-value 6.42 and β value 0.638. Moreover, the same
results are found in case of sustainable competitive advantage and sustainable business performance
with t-value 16.155 and β value 0.718. These results have supported all direct hypotheses. Moreover,
indirect effect is highlighted in Table 6.
Table 6. Indirect Effect.
Relationship
Original Sample
(O)
Sample Mean (M)
Standard Deviation
(STDEV)
t-Statistics
(|O/STDEV|)
p-Values
ITI→SA→SCA 0.528 0.515 0.089 5.954 0
ITMR→SA→SCA 0.1 0.101 0.003 3.388 0.003
SR→SA→SCA 0.118 0.119 0.05 2.31 0.014
VB→SA→SCA 0.114 0.116 0.068 1.642 0.073
Apart from direct results, it is found that indirect effect through strategy alignment is significant in
case of social responsibility and sustainable competitive advantage with t-value 2.31 and β value 0.118.
The indirect effect also found significant in case of IT managerial resources and IT implementation
success t-value 3.388 and β value 0.1, t-value 5.954 and β value 0.528, respectively. However, the indirect
15. Sustainability 2019, 11, 3811 15 of 23
effect between values and beliefs, and sustainable competitive advantage found insignificant, which did
not support H9.
R-square (R2) and predictive relevance (Q2) is shown in Tables 7 and 8, respectively. The r-square
value for sustainable business performance is 0.321, which weaks as per recommendations of Chin [127];
however, it is acceptable. Thus, all the exogenous latent variables are expected to bring 32.1% change
in sustainable business performance. Predictive relevance (Q2) shows that the quality of model has
also achieved the satisfactory threshold level.
Table 7. R-Square (R2).
Latent Variable R2
Strategy Alignment (SA) 0.882
Sustainable Business Performance (SBP) 0.516
Sustainable Competitive Advantage (SCA) 0.822
Table 8. Predictive Relevance (Q2).
Latent Variable SSO SSE Q2 (1 − SSE/SSO)
Strategy Alignment (SA) 910 297.46 0.673
Sustainable Business Performance (SBP) 728 494.389 0.321
Sustainable Competitive Advantage (SCA) 910 348.677 0.617
5. Discussions
Findings revealed that social and technological challenges are most crucial to promote sustainable
competitive advantage and sustainable business performance. Results of the analysis show that
social responsibility has a positive association with sustainable competitive advantage. Various other
studies have also revealed the same fact [32,128–130]. Moreover, values and beliefs have also found
a positive relationship with sustainable competitive advantage. These findings are consistent with
Al-Majali [18]. Therefore, the present study shows that social challenges such as values and beliefs,
and social responsibility promote sustainable competitive advantage. SMEs management should focus
on to resolve these social challenges to increase and sustain competitive advantage.
In case of technological challenges, it is revealed that IT managerial resources and IT
implementation success help to sustain competitive advantage. IT managerial resources have a positive
association with sustainable competitive advantage as revealed by other studies such as Byrd and
Turner [131], and Al-Majali [18]. Furthermore, IT implementation success also has a significant positive
effect on sustainable competitive advantage. As it is found by Dehning and Stratopoulos [132] that
IT enables strategy for implementation of technology has positive role in sustainable competitive
advantage. Therefore, both IT managerial resources and IT implementation success has important
roles in achieving sustainable competitive advantage. Better IT implementation and IT managerial
skills increase the sustainable competitive advantage. Thus, SMEs must ensure better IT skills and
better IT implementation success.
Moreover, strategy alignment has key role in improving the positive effect of social and
technological factors on sustainable competitive advantage. Strategy alignment positively mediates the
relationship between social, technological factors and sustainable competitive advantage. Therefore,
strategy alignment is required to take maximum benefits from social and technological factors.
After analysing the social and technological factors, it is revealed that a combination of all these
factors with strategy alignment and the sustainable competitive advantage increase sustainable business
performance, as it is proved by the present study that the competitive advantage increases sustainable
business performance. It is also revealed by the prior studies carried out in various countries with
different environment [30,31,133–135].
16. Sustainability 2019, 11, 3811 16 of 23
6. Conclusions
The present study majorly focuses on sustainable business performance among Malaysian SMEs.
The objective of this study is to examine the roles of social and technological challenges in achieving
a sustainable competitive advantage and sustainable business performance. Additionally, the mediating
role of strategy alignment has also been examined between social challenges, technological challenges
and sustainable competitive advantage.
Social and technological challenges have major importance for sustainable business performance.
Social and technological challenges such as social responsibility, values and beliefs, IT managerial
resources and IT implementation success has key contribution to boosting sustainable competitive
advantage among SMEs through strategy alignment. Strategy alignment has a vital role in shifting the
positive effect of social and technological factors on sustainable competitive advantage. Better strategy
alignment helps SMEs to gain sustainable competitive advantage through social and technological
factors. Finally, sustainable competitive advantage increases the sustainable business performance
of SMEs. Therefore, it is recommended to the Malaysian SMEs to focus on social and technological
challenges. Mainly, SMEs should focus on strategy alignment to boost sustainable competitive
advantage and sustainable business performance. SMEs should focus on improving social responsibility,
values and beliefs, IT managerial resources and IT implementation success for success in achieving
sustainable business performance.
6.1. Implications of the Study
In this study, IT-business strategic alignment has been considered uniquely and measured from
numerous perspectives with the mediation effect. Notably, there is little research on the impact of
fits on the firm’s sustainable competitive advantage in SMEs. The present study has also stated that
the new conceptualization of IT-business strategic alignment offerings have higher insights into the
conditions of alignment in terms of the antecedent variables, and the consequences in terms of the
mediating procedures. Consequently, it is expected that this contribution will deliver valuable insight
into academia.
Findings of the study are beneficial for practitioners while making the strategies related to
sustainable competitive advantage and sustainable business performance. The present provides
roadmap for SMEs to develop a framework with the combination of social factors, new technological
factors and strategy alignment to increase the sustainability in achieving a firm’s competitive advantage
and business performance. From the study, SMEs can take help to improve the strategic alignment,
which automatically boosts thepositive roles ofsocial and technological factors inachieving asustainable
competitive advantage and sustainable business performance. Therefore, while making strategies,
this study provides valuable insights.
6.2. Limitations and Future Directions
The current study is limited to the Malaysian SMEs; therefore, the results cannot be generalized
to other countries, because it is the difference between the social and technological challenges in
each market or country. Moreover, the company environment is also different in each country. Thus,
for more precise results, the sample of the study should include other developing countries like
Malaysia. The present study is limited to quantitative research techniques; the interviews of SMEs
managers through qualitative research may improve the findings. Moreover, this study followed the
cross-sectional research design. However, longitudinal research design could be more beneficial to
achieve the objectives. Finally, this study is only limited to the four social and technological challenges;
thus, future research should include other challenges.
Author Contributions: M.H. has worked on the original idea. M.H. has performed the detailed conceptualization
and investigation of this research. H.I.H. has finalized the methodology and data analysis of this research. S.K.
has performed the write up of this project including the writing of original draft. S.K. has performed the data
17. Sustainability 2019, 11, 3811 17 of 23
collection and data analysis. A.A. has written the final draft and done the review, proof reading and editing for
final submission. K.J. has coordinated the methodology and data analysis stage of this research project.
Funding: This research received no external funding.
Conflicts of Interest: The authors declare no conflict of interest.
Appendix A
Scale Items
Social Responsibility
1. Our organization considers general environmental considerations by using technology.
2. Our organization provides environmental education programs, awards and studies to protect the
environment by the inappropriate use of technology.
3. Our organization donates to community groups and charitable bodies.
4. Our organization provides funding scholarship programs or activities for technology use.
5. Our organization sponsors communities’ programs and activities.
6. Our organization sponsors public health, sporting and recreational projects.
Values and Beliefs
1. Managers have trusts of their knowledge towards IT implementation specialist.
2. Managers trust the knowledge possessed by IT implementation specialists.
3. IT implementation for experts must be responsible for consolidating their organizations.
4. Managers comprehend IT implementation terminology well at all levels.
5. IT implementation enhances their productivity among managers.
6. It is considered that values and beliefs are key to strategic alignment.
IT Managerial Resource
1. Business managers in your company understand problems, tasks, and roles of the IT department.
2. Business managers in your company understand the accomplishments of the IT department.
3. IT managers in your company understand the work environment of the business functions.
4. IT managers in your company understand the activities of the business functions.
IT Implementation Success
1. IT implementation managers will be kept updated with strategic business plan.
2. IT implementation affects the efficiency/ effectiveness in decision making.
3. IT implementation will save expenditures of running an operation.
4. Top management provides internal training.
5. New products and services introduced in my company are based on advances in
information technology.
Strategy Alignment
1. Our IT planners are aware of the firm’s objectives, business strategies, and long-term goal.
2. Our firm’s business plans offer clear directions for IT planning.
3. Our IT managers participate in strategic business planning.
4. Our IT and business planners interact closely in the formulation of the IT strategic plan.
5. Our IT strategy is derived from business strategy.
6. Our business and IT strategies are fully integrated and developed together.
18. Sustainability 2019, 11, 3811 18 of 23
Sustainable Competitive Advantage
1. My organization gives attention to develop discovered ideas into new services, processes,
and procedures.
2. My organization introduces services that are new to the market it serves.
3. Preferred market positioning can contribute to competitive advantages in the market place.
4. Access to superior limit resources can contribute to competitive advantages in the market place.
5. Exploiting unlimited resources can contribute to competitive advantages in the market place.
6. Access to superior competencies and capabilities can contribute to competitive advantages in
the marketplace.
Sustainable Business Performance
1. Net profit margin of our organization increased.
2. Return on investment of our organization increased.
3. Profitability growth has been outstanding.
4. Profitability has exceeded our competitors.
5. Overall financial performance has exceeded competitors.
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