The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance

SMEs are considered as engine for economic growth of most nations. They contribute in providing job opportunities, and act as specialist supplier of components, parts and sub-assemblies to large firms. However, due to global competition, technological advances and changing needs of customers, SMEs a...

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Main Author: Imhemad, Imhemad Abdusalam Almahdi
Format: Thesis
Language:eng
Published: 2011
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Online Access:https://etd.uum.edu.my/3500/1/s91137.pdf
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id my-uum-etd.3500
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
advisor Mahmood, Rosli
topic HB615-715 Entrepreneurship
Risk and uncertainty
Property
spellingShingle HB615-715 Entrepreneurship
Risk and uncertainty
Property
Imhemad, Imhemad Abdusalam Almahdi
The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
description SMEs are considered as engine for economic growth of most nations. They contribute in providing job opportunities, and act as specialist supplier of components, parts and sub-assemblies to large firms. However, due to global competition, technological advances and changing needs of customers, SMEs are on tremendous pressure to sustain their competitiveness in domestic as well as global markets. Thus, this study was undertaken to determine the influence of certain variables on SME performance in Libya. Specifically, the objectives of study were to (1) determine the relationship between innovation practices and IS capability to SME performance, (2) determine the moderating effect of competitive advantage on the relationship between innovation practice and SME performance, (3) determine the moderating effect of environment on the relationship between innovation practice and SME performance, (4) determine the moderating effect of competitive advantage on the relationship between IS capability and SME performance, and (5) determine the moderating effect of environment on the relationship between IS capability and SME performance. A survey method was employed and questionnaires were used to obtain information from the owner/managers of small and medium plastic firms in Libya. The questionnaire developed by Terziovski (2010) was used to measure innovation practices, while IS capability measurement was based on a previous study by Ravichandran and Lertwongsatien (2005). For competitive advantage, the measurement used a 12 items from Ramaswai, Bhargava and Srivastava (2004), the environment measurement from questions adopted from Thong and Yap (1995) and performance scale was taken from Zhang (2005). A total of 830 owner/managers from the sampling frame were sent with the questionnaires and 179 usable responses were returned giving a response rate of 21.56 percent, which is relatively good. Data were analysed using correlations and multiple regressions to test the relationships. Results revealed that all variables under study had shown significant and positive relationship with performance except a dimension of innovation practice (innovation culture) which did not show any significant relationship with SME performance. Similarly, the moderating effect of both environment and competitive advantage on the relationships between innovation practice and performance, and between IS capability and performance had been supported. The findings of this study suggested that innovation practices and IS capability are important factors for improving performance of SMEs in Libya and to make them more competitive. The study concluded with a discussion of theoretical and practical implications, the study limitations and suggestions for future research.
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Imhemad, Imhemad Abdusalam Almahdi
author_facet Imhemad, Imhemad Abdusalam Almahdi
author_sort Imhemad, Imhemad Abdusalam Almahdi
title The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
title_short The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
title_full The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
title_fullStr The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
title_full_unstemmed The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance
title_sort moderating effect of competitive advantage and environment on the relationship of innovation practices and technology adoption on sme performance
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2011
url https://etd.uum.edu.my/3500/1/s91137.pdf
_version_ 1747827587356295168
spelling my-uum-etd.35002016-04-19T00:50:22Z The Moderating Effect of Competitive Advantage and Environment on the Relationship of Innovation Practices and Technology Adoption on SME Performance 2011 Imhemad, Imhemad Abdusalam Almahdi Mahmood, Rosli Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB615-715 Entrepreneurship. Risk and uncertainty. Property SMEs are considered as engine for economic growth of most nations. They contribute in providing job opportunities, and act as specialist supplier of components, parts and sub-assemblies to large firms. However, due to global competition, technological advances and changing needs of customers, SMEs are on tremendous pressure to sustain their competitiveness in domestic as well as global markets. Thus, this study was undertaken to determine the influence of certain variables on SME performance in Libya. Specifically, the objectives of study were to (1) determine the relationship between innovation practices and IS capability to SME performance, (2) determine the moderating effect of competitive advantage on the relationship between innovation practice and SME performance, (3) determine the moderating effect of environment on the relationship between innovation practice and SME performance, (4) determine the moderating effect of competitive advantage on the relationship between IS capability and SME performance, and (5) determine the moderating effect of environment on the relationship between IS capability and SME performance. A survey method was employed and questionnaires were used to obtain information from the owner/managers of small and medium plastic firms in Libya. The questionnaire developed by Terziovski (2010) was used to measure innovation practices, while IS capability measurement was based on a previous study by Ravichandran and Lertwongsatien (2005). For competitive advantage, the measurement used a 12 items from Ramaswai, Bhargava and Srivastava (2004), the environment measurement from questions adopted from Thong and Yap (1995) and performance scale was taken from Zhang (2005). A total of 830 owner/managers from the sampling frame were sent with the questionnaires and 179 usable responses were returned giving a response rate of 21.56 percent, which is relatively good. Data were analysed using correlations and multiple regressions to test the relationships. Results revealed that all variables under study had shown significant and positive relationship with performance except a dimension of innovation practice (innovation culture) which did not show any significant relationship with SME performance. Similarly, the moderating effect of both environment and competitive advantage on the relationships between innovation practice and performance, and between IS capability and performance had been supported. The findings of this study suggested that innovation practices and IS capability are important factors for improving performance of SMEs in Libya and to make them more competitive. The study concluded with a discussion of theoretical and practical implications, the study limitations and suggestions for future research. 2011 Thesis https://etd.uum.edu.my/3500/ https://etd.uum.edu.my/3500/1/s91137.pdf text eng validuser Ph.D. doctoral Universiti Utara Malaysia Abdulai, A., Monnin, P., & Gerber, J. (2008). Joint estimation of information acquisition and adoption of new technologies under uncertainty. Journal of International Development, 20(4), 437-451. Abor, J., & Quartey, P. (2010). Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 39, 218-28. Abernathy, W. J., & Clark, K.B. (1985). Innovation: mapping the winds of creative destruction. Research Policy, 14(1), 3-22. Acha,V. (2000). 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