Literature has revealed, recently, the importance of entrepreneurial orientation (EO) for supply chain resilience (SCR); however, doubts remain as to how EO could improve SCR exist due to the vagueness surrounding it. We examine absorptive capacity (AC) and innovation as two mechanisms that mediate the EO-SCR relationship. An empirical analysis was made of the proposed model, based upon survey data for 171 manufacturing SMEs in the Sana'a region, Yemen, using a structural equation model (SEM) with the SmartPLS. The results obtained have shown that EO positively affects SCR for SMEs and, most significantly, this relationship is indirect as it is fully mediated by AC and innovation. The findings have revealed that EO improves SCR when those firms make efforts in developing AC and innovation. EO is significant, but it may not be sufficient to improve SCR if the firm is unable to absorb external knowledge and innovate.
24 February 2023 in Business Strategy and the Environment
Purpose: The importance of innovation has attracted growing attention due to the complex and rapidly changing business environment. This study aimed, first, to examine the joint effect of servant and authentic leadership (AUL) styles on employee creativity (EC), second, to examine the direct and mediated effect of servant leadership (SL) on employees' innovative work behaviour (IWB), third, to examine the effect of EC on IWB and finally, to investigate the moderating effect of creative self-efficacy (CSE) on the relationship between AUL and EC.Design/methodology/approach: A quantitative approach was used, and the data were collected from 446 employees in the Qatari public sector. The data were then analysed by employing partial least squares structural equation modelling (PLS-SEM) using SmartPLS software to validate the measures before testing the proposed model.Findings: The results of this study emphasized the strong hypothesized link between EC and IWB. It also endorsed the mediating role of EC between SL and IWB and the moderating role of CSE in the AUL-EC relationship.Originality/value: The originality of this study comes from various aspects. First, it is unique in separately examining EC and innovation and the link between them. Second, it investigates the joint impact of servant and AUL styles on EC. Third, it explores the mediating role of EC between SL and IWB. Fourth, the moderating effect of CSE on the AUL-EC link also was examined to gain a full understanding of the relation effect. Finally, the value of the current study also comes from the integration of the triangular theory of creativity, SL and AUL theories and self-efficacy theory to explain the proposed model of the study. Moreover, this study serves as a guideline for decision-makers on how to enhance IWB among employees by focusing on leadership programmes and the creative and innovative culture.
13 July 2022 in Business Ethics, the Environment & Responsibility
Purpose: The purpose of this paper is to explore whether innovation mediates the relationship between entrepreneurial orientation (EO) and supply chain resilience (SCR) in the context of small and medium enterprises (SMEs).Design/methodology/approach: Based on the structural equation modeling the relationships were tested in the proposed model. A self-administered questionnaire was used to collect data from SMEs owners/managers in Yemen. Out of 384 questionnaires, 229 have been used in statistical analysis.Findings: The results obtained reveal that both EO and innovation have positive and significant effects on SCR. In addition, innovation partially mediates the effects of EO dimensions (risk-taking and proactiveness) on SCR.Practical implications: Managers and decision-makers of SMEs who want to enhance their firms' resilience to any supply chain disruptions are highly recommended to adopt EO, as well as to develop the innovative capability resulting from it.Originality/value: The present study emphasizes previous results and provides additional evidence that SMEs' adoption of EO can reinforce their resilience within the supply chain through innovation in light of the disruptions facing supply chains in developing countries.
Supply chain resilience (SCR) is often seen as a dynamic capability that enables firms to effectively cope with disruptions and unforeseen events in the business environment. However, empirical research focusing on influencing factors on SCR is still limited. Based on the resource-based view (RBV) and the dynamic capabilities theory (DCT), we examine if absorptive capacity (AC) does in fact moderate the relationship between entrepreneurial orientation (EO) and SCR. Drawing upon a sample of 171 Yemeni manufacturing SMEs, we tested the relationships in the proposed model. The findings of the data analysis using SmartPLS show that EO positively affects SCR, further, AC positively moderates the relationship between EO and SCR. With this outcome, it is expected that SME managers in Yemen demonstrate significant interest in developing the AC of their firms. This has implications that with the development of AC, it is expected that SMEs will be able to utilize the full potential of EO to improve SCR.