Moderating role of gender in influencing enterprise performance in emerging economies: Evidence from Saudi Arabian SMEs sector
-
Received May 9, 2021;Accepted July 14, 2021;Published August 16, 2021
-
Author(s)Hend Hassan ,Link to ORCID Index: https://orcid.org/0000-0002-4143-7896Link to ORCID Index: https://orcid.org/0000-0002-3774-1342
-
DOIhttp://dx.doi.org/10.21511/ppm.19(3).2021.13
-
Article InfoVolume 19 2021, Issue #3, pp. 148-161
- TO CITE АНОТАЦІЯ
-
Cited by3 articlesJournal title: Research in GlobalizationArticle title: A systematic review and bibliometric analysis on agribusiness gaps in emerging marketsDOI: 10.1016/j.resglo.2024.100214Volume: 8 / Issue: / First page: 100214 / Year: 2024Contributors: Richard Kwasi Bannor, Kingsley Kofi ArthurJournal title: Cogent Social SciencesArticle title: Policy and entrepreneurs in MSEs in Ethiopia: Does gender moderate the relationship between policy component of the entrepreneurial ecosystem and the performance of MSEs?DOI: 10.1080/23311886.2023.2259456Volume: 9 / Issue: 2 / First page: / Year: 2023Contributors: Mulugeta Chane Wube, Heena AtwalJournal title: Administrative SciencesArticle title: Implications of Digitalization on the Persistence of StartupsDOI: 10.3390/admsci14080167Volume: 14 / Issue: 8 / First page: 167 / Year: 2024Contributors: Débora De-Esteban-Escobar, Carmen De-Pablos-Heredero, José Luis Montes-Botella, Francisco José Blanco-Jiménez
- 775 Views
-
278 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The small and medium enterprise (SME) sector plays an important role in the development of the local, regional, and global economy. This study seeks to examine the relationships among several factors that are claimed to influence the performance of SMEs. Internal and external environmental factors, as well as the moderating role of gender on the research variables, are empirically examined.
A survey of 142 entrepreneurs in the northern region of Tabuk, Saudi Arabia, using convenience sampling was conducted. Path analysis was used to test the research model using the Partial Least Squares (PLS) model by Warp PLS (ver. 7). Results suggest that both internal and external success factors influence enterprise performance. Based on statistically significant relationships, entrepreneurial orientation, human capital, and entrepreneur goals and motives (internal factors), as well as economic factors, socio-cultural factors, and legal and administrative factors (external factors) are influencing SME performance. Additionally, results indicate that SMEs almost perform at similar levels regardless of the gender of the SME owner. Gender is found to moderate the influence of economic factors, and legal and administrative factors on performance. There is no indication that gender moderates the influence of the rest of the factors on the performance. Such finding is surprising given the context of the study, i.e. Saudi Arabia was traditionally considered as a conservative male-dominated society.
Acknowledgment
This study was supported and funded by the research sector of Arab Open University – Kuwait Branch under decision number 21002. Authors would like to thank the National Entrepreneurship Institute “RIYADAH”, Tabuk branch, KSA for their support in data collection.
- Keywords
-
JEL Classification (Paper profile tab)M10, M13
-
References69
-
Tables5
-
Figures1
-
- Figure 1. Conceptual model
-
- Table 1. Scales development
- Table 2. Demographic characteristic profiles of respondents (n = 142)
- Table 3. Measurement model
- Table 4. Correlations and square roots of AVE
- Table 5. Path coefficients for the conceptual model
-
- Aliyu, S. M. (2013). An assessment of women entrepreneurship performance in Nigeria. Malaysian Management Journal, 17, 1-12.
- Amin, M., & Kushnir, K. (2012). Gender disparity in human capital: Going beyond schooling. World Bank.
- Anderson, A. R., & Miller, C. J. (2003). Class matters: Human and social capital in the entrepreneurial process. The journal of socio-economics, 32(1), 17-36.
- Arasti, Z., Rezaee, S., Zarei, B., & Panahi, S. (2012). A qualitative study on individual factors affecting Iranian women entrepreneurs’ growth orientation. International Business Research, 11(7).
- Baum, R. J., Locke, E. A., & Smith, K. G. (2001). A multidimensional model of venture growth. Academy of Management Journal, 44(2), 292-303.
- Baumol, W. J. (1993). Formal entrepreneurship theory in economics: Existence and bounds. Journal of business venturing, 8(3), 197-210.
- Benzing, C., Chu, H., & Kara, O. (2009). Entrepreneurs in Turkey: a factor analysis of motivations success factors and problems. Journal of Small Business Management, 47(1), 58-91.
- Bird, B., & Brush, C. (2002). A gendered perspective on organizational creation. Entrepreneurship Theory and Practice, 26(3), 41-65.
- Bosma, N., van Prag, R., Thurik, R., & de Wit, G. (2004). The value of human and social capital investments for the business performance of start-ups. Small Business Economics, 23(3), 227-236.
- Calás, M. B., & Smircich, L. (1989). Using the F Word: Feminist Theories and the Social Consequences of Organizational Research. Academy of Management Proceedings, 1989(1), 355-359.
- Chin, W. W. (2010). How to write up and report PLS analyses. In V. Esposito Vinzi, W. W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares: Concepts, Methods and Applications (pp. 655-690). Springer, Berlin, Heidelberg.
- Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences. Hillsdale.
- Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1991). A resource-based prediction of new venture survival and growth. Academy of Management Proceedings, 1991(1), 68-72.
- Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic management journal, 10(1), 75-87.
- Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448-474.
- DeTienne, D. R., & Chandler, G. N. (2004). Opportunity identification and its role in the entrepreneurial classroom: A pedagogical approach and empirical test. Academy of management learning & education, 3(3), 242-257.
- Ebrahimi, P., Shirsavar, H. R. A., Forootani, F., Roohbakhsh, N., & Ebrahimi, K. (2018). Entrepreneurship and SMEs performance: Studying the mediating role of innovation and the moderating role of firm size. In Competitiveness in emerging markets (pp. 481-501). Springer, Cham.
- Ekpe, I., Mat, N. B., & Razak, R. C. (2010). The effect of microfinance factors on women entrepreneurs’ performance in Nigeria: A conceptual framework. International Journal of Business and social science, 1(2), 255-263.
- Elenurm, T., & Vaino, E. (2011). Interpretations of entrepreneurial success factors by female entrepreneurs and executives in a catch-up economy. ICSB World Conference Proceedings, 1.
- Fairlie, R. W., & Robb, A. M. (2009). Gender differences in business performance: evidence from the Characteristics of Business Owners survey. Small Business Economics, 33(4), 375-395.
- Fatoki, O. O. (2011). The impact of human, social and financial capital on the performance of small and medium-sized enterprises (SMEs) in South Africa. Journal of Social Sciences, 29(3), 193-204.
- Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382-388.
- Gomezelj, D. O., & Kušce, I. (2013). The influence of personal and environmental factors on entrepreneurs’ performance. Kybernetes, 42(6), 906-927.
- Gottschalk, S., & Niefert, M. (2013). Gender differences in business success of German start-up firms. International Journal of Entrepreneurship and Small Business, 18(1), 15-46.
- Haase, D. (2012). Revolution, interrupted: Gender and microfinance in Nicaragua. Critical Sociology, 38(2), 221-240.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.) Pearson.
- Halabi, C. E., & Lussier, R. N. (2014). A model for predicting small firm performance: Increasing the probability of entrepreneurial success in Chile. Journal of Small Business and Enterprise Development, 21(1), 4-25.
- Hankinson, A., Bartlett, D., & Ducheneaut, B. (1997). The key factors in the small profiles of small-medium enterprise owner-managers that influence business performance: The UK (Rennes) SME survey 1995-1997. An international research project UK survey. International Journal of Entrepreneurial Behavior & Research, 3(3), 168-175.
- Hasan, F. S., Almubarak, M. M. S., & Ahmed, A. (2016). Factors influencing women entrepreneurs’ performance in SMEs. World Journal of Entrepreneurship, Management and Sustainable Development, 12(2).
- Headd, B. (2003). Redefining business success: Distinguishing between closure and failure. Small business economics, 21(1), 51-61.
- Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics, & P. N. Ghauri (Eds.), New challenges to international marketing (Advances in International Marketing, 20) (pp. 277-319). Emerald Group Publishing Limited.
- Hoque, A. S. M. M., Siddiqui, B. A., Awang, Z. B., & Baharu, S. M. A. T. (2018). Exploratory factor analysis of Entrepreneurial orientation in the context of Bangladeshi small and medium Enterprises (SMEs). European Journal of Management and Marketing Studies, 3(2), 81-94.
- Javadian, G., & Singh, R. P. (2012). Examining successful Iranian women entrepreneurs: an exploratory study. Gender in management, 27(3), 148-164.
- Kuratko, D. F., Hornsby, J. S., & Naffziger, D. W. (1997). An examination of owner’s goals in sustaining entrepreneurship. Journal of small business management, 35(1), 24-33.
- Lew, Y. K., & Sinkovics, R. R. (2013). Crossing borders and industry sectors: behavioral governance in strategic alliances and product innovation for competitive advantage. Long Range Planning, 46(1-2), 13-38.
- Lewrick, M., Omar, M., Raeside, R., & Sailer, K. (2010). Education for entrepreneurship and innovation: “Management capabilities for sustainable growth and success”. World Journal of Entrepreneurship, Management and Sustainable Development, 6(1/2), 1-18.
- Lo, M. C., Wang, Y. C., Wah, C. R. J., & Ramayah, T. (2016). The critical success factors for organizational performance of SMEs in Malaysia: a partial least squares approach. Review of Business Management, 18(61), 370-391.
- Lussier, R. N. (1995). A non-financial business success versus failure prediction model for young firms. Journal of Small Business Management, 33(1), 8-20.
- Lussier, R. N., Bandara, C., & Marom, S. (2016). Entrepreneurship success factors: an empirical investigation in Sri Lanka. World Journal of Entrepreneurship, Management and Sustainable Development, 12(2).
- Majumdar, S., & Varadarajan, D. (2013). Students’ attitude towards entrepreneurship: does gender matter in the UAE? Foresight, 15(4), 278-293.
- National Entrepreneurship Institute RIYADAH. (n.d.). Home. (In Arabic).
- Njeru, A. W., Namusonge, G. S., & Kihoro, J. M. (2012). Size as a determinant of choice of source of entrepreneurial finance for small and medium sized enterprises in Thika district. International Journal of Business and Social Science, 3(16), 53-58.
- Nneka, A. A. (2015). Factors that affect the performance of women entrepreneurs in the micro scale enterprises in Southwestern Nigeria. The Business & Management Review, 6(2).
- Perez, E. H., & Canino, R. M. B. (2009). The importance of the entrepreneur’s perception of “success”. Review of International Comparative Management, 10(5), 990-1010.
- Pirolo, L., & Presutti, M. (2010). The impact of social capital on the start-ups’ performance growth. Journal of Small Business Management, 48(2), 197-227.
- Radipere, S., & Dhliwayo, S. (2014). The role of gender and education on small business performance in the South African small enterprise sector. Mediterranean Journal of Social Sciences, 5(9), 104.
- Ramos, L. A. G., Maldonado, E. R., & Hernández, E. F. M. (2014). Comparison of women entrepreneurs profiles in Coahuila, Mexico and San Juan, Puerto Rico. Global Conference on Business & Finance Proceedings, 9(2), 190.
- Reynolds, P., & Miller, B. (1989). New firm survival: analysis of a panel’s fourth year. In R. H. Brockhaurs, N. C. Churchill, J. A. Katz, B. A. Kirchoff, K. H. Vesper, & W. E. Wetzel (Eds), Frontiers of Entrepreneurship Research. Wellesley, MA: Babson College.
- Robb, A. M., & Watson, J. (2012). Gender differences in firm performance: Evidence from new ventures in the United States. Journal of Business Venturing, 27(5), 544-558.
- Robichaud, Y., McGraw, E., & Alain, R. (2001). Toward the development of a measuring instrument for entrepreneurial motivation. Journal of developmental entrepreneurship, 6(2), 189.
- Rosa, P., Carter, S., & Hamilton, D. (1996). Gender as a determinant of small business performance: Insights from a British study. Small business economics, 8(6), 463-478.
- Sadi, M. A., & Al-Ghazali, B. M. (2012). The dynamics of entrepreneurial motivation among women: A comparative study of businesswomen in Saudi Arabia and Bahrain. In M. Ramady (Ed.), The GCC Economies (pp. 217-227). New York: Springer.
- Saudi SMEs public authority (Monshaat). (n.d.) Home. (In Arabic).
- Shane, S. A. (2003). A general theory of entrepreneurship: The individual-opportunity nexus. Edward Elgar Publishing.
- Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of management review, 25(1), 217-226.
- Shariff, M. N, Ahmad, N. R., & Hafeez, M. H. (2017). Moderating Role of Access to Finance on Entrepreneurial Orientation, Market Orientation, Learning Orientation and SMEs Performance of Gem and Jewelry Industry in Thailand. Journal of Business and Social Review in Emerging Economies, 3(1), 109-120.
- Shava, H., & Rungani, E. C. (2014). Gender Differences in Business Related Experience amongst Smmes Owners in King Williams Town, South Africa: A Comparative Analysis. Mediterranean Journal of Social Sciences, 5(20), 2687-2687.
- Shava, H., & Rungani, E. C. (2016). Influence of gender on SME performance in emerging economies. Acta Commercii, 16(1), 1-9.
- Shehu, A. M., & Mahmood, R. (2015). The moderating role of business environment in the relationship between entrepreneurial orientation and business performance among Nigerian SMEs. Jurnal Pengurusan, 43, 119-129.
- Slack, N., Chambers, S., & Johnston, R. (2010). Operations management. Prentice Hall.
- Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational statistics & data analysis, 48(1), 159-205.
- Teoh, M.-Y. W., & Chong, S.-C. (2007). Theorising a framework of factors influencing performance of women entrepreneurs in Malaysia. Journal of Asia Entrepreneurship and sustainability, 3(2).
- Thompson, M. C. (2020, April 14). Gulf Monitor: Saudi Arabia’s vision for SMEs. Castlereagh Associates.
- UN-Habitat. (n.d.). About us.
- Verheul, I., Thurik, R., & Grilo, I. (2008). Explaining preferences and actual involvement in self-employment: New insights into the role of gender (Report ERS-2008-003-ORG). Erasmus Universiteit Rotterdam.
- Wube, M. C. (2010). Factors affecting the performance of women entrepreneurs in micro and small enterprises: The case of Dessie Town (Thesis). Bahir Dar University.
- Zamberi, A. S., & Xavier, S. R. (2012). Entrepreneurial environments and growth: evidence from Malaysia GEM data. Journal of Chinese Entrepreneurship, 4(1), 50-69.
- Zeffane, R. (2013). Gender and youth entrepreneurial potential: Evidence from the United Arab Emirates. International Journal of Business and Management, 8(1).
- Zeffane, R. (2015). Gender, trust and risk-taking: a literature review and proposed research model. Journal of Enterprising Communities: People and Places in the Global Economy, 9(3), 221-232.
-
-
Conceptualization
Hend Hassan, Ahmed Abdelkader, Rashed Alhaimer, Marwa Abdelkader
-
Data curation
Hend Hassan, Rashed Alhaimer, Marwa Abdelkader
-
Investigation
Hend Hassan, Rashed Alhaimer, Marwa Abdelkader
-
Methodology
Hend Hassan, Ahmed Abdelkader
-
Project administration
Hend Hassan
-
Supervision
Hend Hassan
-
Writing – original draft
Hend Hassan, Rashed Alhaimer, Marwa Abdelkader
-
Visualization
Hend Hassan
-
Formal Analysis
Ahmed Abdelkader
-
Funding acquisition
Ahmed Abdelkader
-
Validation
Ahmed Abdelkader
-
Writing – review & editing
Ahmed Abdelkader
-
Conceptualization
-
Challenges of small and medium enterprises during the COVID-19 pandemic: Case of Georgia
Problems and Perspectives in Management Volume 19, 2021 Issue #4 pp. 20-28 Views: 3060 Downloads: 1592 TO CITE АНОТАЦІЯThe COVID-19 pandemic has had a significant impact on small and medium enterprises (SMEs). The purpose of this study is to assess the impact of the COVID-19 pandemic on SMEs in Georgia, identify the challenges of SMEs in pandemic conditions, and analyze government economic policy measures. For this purpose, 102 small and medium entrepreneurs from different regions of Georgia were interviewed. The survey was conducted by sending a questionnaire through digital channels. The results were processed using data analysis, quantitative and qualitative research methods, and presented graphically. As a result, key challenges and development directions that are typical for SMEs operations in Georgia during the pandemic were identified. For 60.8% of surveyed SME owners, lockdown is the main challenge. Sales volume of 45.1% of SMEs decreased. In addition, 39.3% of the surveyed SME owners increased the innovative capabilities of a company and 37.2% increased the sales volume of a company through digital channels. The main challenge of the pandemic, lockdown, gave impetus to a change in entrepreneurial behavior. In a pandemic, entrepreneurial activity has become more favorable through digital channels. During the pandemic, there is a need to continue the government’s program of tax incentives and subsidies for SMEs. In addition, the government should promote education in the fields of entrepreneurship, innovation, and technology.
-
The impact of COVID-19 pandemic on performance of small enterprises that are e-commerce adopters and non-adopters
Dirga Lestari , Saida Zainurossalamia ZA , Siti Maria , Wirasmi Wardhani , Rizky Yudaruddin doi: http://dx.doi.org/10.21511/ppm.19(3).2021.38Problems and Perspectives in Management Volume 19, 2021 Issue #3 pp. 467-477 Views: 2355 Downloads: 1267 TO CITE АНОТАЦІЯResearchers have emphasized the role of e-commerce for small enterprises in improving their performance. However, there is limited evidence on the use of e-commerce by small enterprises, and e-commerce adopters and non-adopters dealing with COVID-19. Therefore, the purpose of this study is to investigate the differences in the impact of COVID-19 on income between small enterprises that are adopters and non-adopters of e-commerce. This study also explored the impact of restrictions on community activities, the intention to adopt e-commerce, and the types of assistance required by small enterprises due to the pandemic. Data were collected through an online questionnaire survey among small enterprises that operate in the culinary field (1,024 small enterprises in Indonesia). The data were analyzed using descriptive analysis, cross-tabulation, and the Mann-Whitney test. This study finds that non-adoption of e-commerce caused small enterprises to experience a decline in income, which worsened due to restrictions of community activities, compared to adopters of e-commerce. Therefore, to overcome this negativity, small enterprises were pushed to adopt e-commerce. Finally, working capital assistance is the main assistance required due to the pandemic both by e-commerce adopters and non-adopters. This study has significant implications for how small enterprises and governments may benefit from e-commerce dealing with extreme disruptions such as the COVID-19 pandemic.
Acknowledgment
We are grateful to Mulawarman University for providing us with the funding necessary to gather the necessary data for the study and complete this empirical investigation. We also would like to thank two anonymous reviewers and seminar participants at Mulawarman University for their helpful feedback. -
Generational links between entrepreneurship, management and puritanism
Problems and Perspectives in Management Volume 17, 2019 Issue #1 pp. 244-256 Views: 2208 Downloads: 709 TO CITE АНОТАЦІЯThis paper deals with relationships between puritanism, management and entrepreneurship. As this is an on-going debate among economic historians, it focuses on the period from the early 1800s until present times, where Norwegian high profile puritan entrepreneurship serves as the case.
The theoretical framework is that entrepreneurship is seen as an important liaison factor representing multifactor productivity in a Solow growth model. The paper provides new insight within different areas on the basis of utilization of available sources. Firstly, it gives new estimates of the entrepreneurship of the puritan leader, Hans Nielsen Hauge (1771–1824).
Secondly, it organizes his followers in three generations. The first is those who directly took up his heritage, i.e. Haugeans. Their heydays lasted until the middle of the 19th century. The second generation is characterized as Haugean descendants. These were highly influenced by the movement’s values. They dominated the scene from the late 1800s to the late 1900s. The third generation is called Neo-Haugeans, largely a fruit of the revival of Haugean values during the last decades.
Thirdly, the paper maps attributes and motivation of this puritan entrepreneurship during generations. The authors conclude that it was guided by high degree of innovation, family ownership, wide portfolios, and continuity, when stewardship seems to be an important motivational factor.