The Effect of Business strategy on Innovation capability, Absorptive capacity and Performance of SMEs in Pakistan

Small and medium enterprises (SMEs) play a vital role in the development of the economy of any country. In Pakistan SMEs hold about 90 percent of the total businesses.The performance of SMEs depends upon many factors.The purpose of this study is to investigate the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan.This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and Performance of SMEs.Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in the context of SMEs in Pakistan

Internal capabilities and SMEs performance: A case of textile industry in Pakistan

The small and medium-sized enterprises (SMEs) play an important role on the growth of the econ-omies of developing countries. In Pakistan, SMEs hold about 90 percent of the total businesses in-cluding the textile industry. The performance of SMEs in the textile industry is influenced by sev-eral factors including the internal capabilities of the firms. Hence the primary objective of the study is to examine the relationship between the internal capabilities namely Innovation Capability, Absorptive Capacity and SMEs Performance among textile firms in Pakistan. The study is conducted using quantitative research. There are 377 questionnaires distributed among textiles SMEs of Pakistan and they were analyzed using some statistical tests. The results reveal that innovation capability and absorptive capacity influenced the performance of SMEs, positively

Examining the internal capabilities on SMEs performance: the effects of environmental turbulence and innovation strategy

The Small and Medium-Sized Enterprises (SMEs) play a crucial part in country's economic growth like Pakistan. Sustaining the SMEs performance is significant and is still attracted the attention of many researchers, even today, it is still compelling due to the emerging global competition in the context of developing countries. The previous findings on the understanding of the complex relationships among factors influencing firm performance remain fragmented and unexplained. Therefore, the purpose of this study is to investigate the relationship between innovation capability, intellectual capital, absorptive capacity, and SMEs performance in Pakistan. Furthermore, the study intends to examine the moderating effect of environmental turbulence and innovation strategy. The study employed the resource-based view as the underpinning theory with two supporting theories, namely, dynamic capability theory and contingency theory. Data were collected from 479 textile SMEs operating in Pakistan using a cross-sectional study design through self- administered questionnaires. However, only 348 surveys were valid for further analysis. This study utilized the Partial Least Squares Structural Equation Modelling to establish the validity and reliability of the measurement model and to test each hypothesis. The outcomes of this study show that innovation capability, intellectual capital, and absorptive capacity have a significant influence on SMEs performance. The results also reveal that environmental turbulence moderates the relationship between innovation capability, intellectual capital, absorptive capacity, and SMEs performance. Furthermore, innovation strategy moderates the relationship between innovation capability, absorptive capacity, and SMEs but innovation strategy does not moderate the relationship between intellectual capital and SMEs performance. The outcome of this study provides new knowledge and valuable insights for government agencies, such as SMEs Development Authority to look further at the programmes and guidelines, and enforce new policies toward improving the performance of SMEs in Pakistan. The study also contributes to the theory as it extends the Resource-Based View theory, Dynamic Capabilities Perspective, and the Contingency Theory and integrating distinct literature streams about innovation capability, intellectual capital, absorptive capacity, environmental turbulence, and innovation strategy. Lastly, there are some limitations as this study is a cross-sectional, using single source of data and just focuses on the textile sector. Hence, future studies should be longitudinal, use multiple sources data and focus on other Pakistan manufacturing sectors

The Effect of Business strategy on Innovation capability, Absorptive capacity and Performance of SMEs in Pakistan

Small and medium enterprises (SMEs) play a vital role in the development of the economy of any country. In Pakistan SMEs hold about 90 percent of the total businesses.The performance of SMEs depends upon many factors.The purpose of this study is to investigate the relationship between Innovation Capability, Absorptive Capacity and Performance of SMEs in Pakistan.This conceptual paper also extends to the vague revelation on Business Strategy in which act as a moderator between Innovation Capability, Absorptive Capacity and Performance of SMEs.Conclusively, this study proposes a new research directions and hypotheses development to examine the relationship among the variables in the context of SMEs in Pakistan

Testing Purchasing Power Parity: A Comparison of Pakistan and India

We defined the purchasing power parity (PPP) in the scenario of Pakistan and India as a long term unit elasticity of exchange rate and compared it with relative national prices. The characteristic of finite sample are analyzed through time series regression analysis. It allows the cross sectional dependency, country heterogeneity and non-stationary disorder. Because the deviation of PPP is decrease with very slow rate, we execute the test on the data of 43 years. The past studies have showed that data was collected on the basis decades, like some of the researcher data contained on 08, 35 and 55 years. Additionally using the time series regression, this study observed the structural changes over a long term period. In this study, result identifies that the real exchange rate of India and Pakistan are not constant. The practical evidence shows that long run PPP holds for the sample countries. Keywords: Purchasing Power Parity; Exchange rate; Time Series Regression Test; Relative National Price

Testing Purchasing Power Parity

We defined the purchasing power parity (PPP) in the scenario of Pakistan and India as a long term unit elasticity of exchange rate and compared it with relative national prices. The characteristic of finite sample are analyzed through time series regression analysis. It allows the cross sectional dependency, country heterogeneity and non-stationary disorder. Because the deviation of PPP is decrease with very slow rate, we execute the test on the data of 43 years. The past studies have showed that data was collected on the basis decades, like some of the researcher data contained on 08, 35 and 55 years. Additionally using the time series regression, this study observed the structural changes over a long term period. In this study, result identifies that the real exchange rate of India and Pakistan are not constant. The practical evidence shows that long run PPP holds for the sample countries. Keywords: Purchasing Power Parity; Exchange rate; Time Series Regression Test; Relative National Price

Importance and Challenges of SMEs: A Case of Pakistani SMEs

This paper attempt to highlight the importance and challenges that SMEs facing now a days. The small and medium-sized enterprises (SMEs) regarded as a key contributor in progression of an economy and main pillar of GDP of any country. SMEs are the major source in generating employment. Generally, the large firms are often thought as the larger contributors towards the economic development and foreign exchange earnings but now this point of view has been changed because countries like Korea, Taiwan, and Japan have developed and boosted their economies through the Small and Medium Enterprises businesses

Female consumer entrepreneurship in Asia : capabilities for micro-entrepreneurial success and the role of coaching and training

Purpose: The direct selling model adopted in the beauty and cosmetics industry puts female consumer entrepreneurs at the heart of the business model. A neglected phenomenon in female entrepreneurship, this study aims to focus on female sales agents’ capabilities that are linked to sales performance and examine which capabilities might be shaped and enhanced through coaching and training in an emerging economy context. Design/methodology/approach: Survey data were generated from a sample of 249 female sales agents who agreed to participate in a coaching and training programme run by a focal firm. Data were collected in two phases to investigate the capabilities linked to sales performance pre-intervention and the impact of coaching and training on the relationships between the capabilities and sales performance post-intervention. The time-lag data were analysed using partial least squares structural equation modelling. Findings: For female sales agents, self-efficacy and sales experience have a significant positive effect on adaptive sales performance both before and after the coaching and training intervention. In contrast, intellectual capital and self-motivation had a non-significant relationship with sales performance before the intervention. However, after the intervention, the relationship between these variables became positive and significant. Originality/value: The study demonstrates the effects of pre- and post-coaching and training on female consumer entrepreneurs’ capabilities and the links to sales performance. These findings add critical empirical knowledge on how female consumer entrepreneurship may be developed and the role of entrepreneurship for female empowerment in the Asian context. Collectively, the findings bring to the fore the female sphere in consumer entrepreneurship research in emerging economies

The Effect of Entrepreneurial Orientation and Organisational Culture on Firm Performance: The Mediating Role of Innovation

This study is concerned with conceptual model development, which examines the innovation influence on the relationship of organisational culture, entrepreneurial orientation and performance of large manufacturing firms in Pakistan. A total of 399 questionnaires were distributed to large manufacturing firms in Pakistan to assess the relationships between organisational culture, entrepreneurial orientation, innovation, and firm performance. The findings reveal that entrepreneurial orientation significantly influences the performance of large manufacturing firms in Pakistan. Meanwhile, the results also indicated that other factors such as organisational culture do not significantly relate to the manufacturing firm’s performance. Interestingly, the results had shown that the factor of innovation significantly mediated the relationships between organisational culture, entrepreneurial orientation and firm performance. Based on the results, it can be summarised that the mechanism used to enhance the innovative culture in the organisation will also contribute to the introduction, adoption and diffusion of innovations. Additionally, these factors would contribute to increased performance and achievement in the near future. Indeed, this statement is supported by numerous current and past studies conducted in Pakistan, where scholars found that innovation is the primary impetus of firm performance. However, there exists a very limited number of studies regarding the impact of innovation on organisational culture and entrepreneurial orientation in manufacturing firms in Pakistan. This study would lead to a significant contribution to the prevailing literature by empirically examining the relationship between organisational culture, entrepreneurial orientation, innovation and firm performance