Safal Batra

Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives

This article explores entrepreneurial orientation (EO); this notion has received considerable theoretical and empirical attention in organizational research, emerging as one of the most widely accepted firm-level constructs in the literature. As knowledge in this area has expanded, researchers have delved into the contextual factors that influence the relationship between EO and organizational performance. With the goal of better understanding the circumstances under which pursuing entrepreneurial strategies result in favourable performance outcomes, this article investigates the EO–performance relationship among small- and medium-sized enterprises (SMEs) in India. Data collected from 198 Indian SMEs revealed a strong positive linkage between EO and firm performance. Environmental contingencies – demand growth and competitive intensity – were theorized and found to have a moderating influence on the EO–performance relationship. Implications and directions for future research are discussed.

Do new ventures benefit from strategic change or persistence? A behavioral perspective

Purpose – Is change always the best alternative? While large and established firms are believed to benefit from strategic flexibility and change, the purpose of this paper is to argue and empirically prove that firms in emerging economies need to persist with their strategies during their formative years in order to acquire sustainable competitive advantage. The author explores these relationships from a behavioral perspective. Design/methodology/approach – Data were collected from 103 Indian new ventures. Multiple linear regression analysis was applied to test the hypotheses. Findings – The findings reveal that persisting with the existing strategies is the most optimal way of surviving and growing in the initial years of a venture operating in the turbulent business environments of emerging economies. Radical shifts in strategic postures can, indeed, be fatal for new firms. Research limitations/implications – The findings are based on data from one emerging economy. Further exploration of these relation...

Performance implications of industry appropriability for manufacturing SMEs : The role of technology orientation

Purpose – Industry appropriability – the degree to which firms in an industry can appropriate benefits from their innovations – is a crucial dimension of industry environment. Small and medium manufacturing enterprises (manufacturing SMEs), because of their limited resource base, tend to be especially sensitive to the appropriability conditions in their industry. The purpose of this paper is to understand the influence of industry appropriability on firm outcomes (innovativeness and performance), and posits technology orientation as a dynamic capability that helps firms overcome appropriability barriers in their industry. Design/methodology/approach – Data were collected from 162 manufacturing SMEs in India. Multiple linear regression analysis was used to test the proposed hypotheses. Findings – This study reveals that the perceived level of appropriability of manufacturing SMEs impacts their innovativeness. Further, findings also support technology orientation as a crucial firm-specific characteristic wh...

Does strategic planning determine innovation in organizations? A study of Indian SME sector:

While some researchers argue that strategic planning assists new product development and can be viewed as a framework for innovation, others believe that it restricts creativity and innovation. Despite a literary appreciation that strategic planning is linked to innovation, the nature of this relationship remains ambiguous. In this study, we argue that this relationship is context dependent and contingent on other organizational factors. Data for this study were collected by administering standardized survey questionnaires to entrepreneurs or other senior executives of small and medium businesses in India. Quantitative analysis of data obtained from 162 small- and medium-sized enterprises (SMEs) in the manufacturing sector reveals a positive relationship between strategic planning and innovation. This study also establishes a significant positive moderating role of commitment to learning on the relationship between strategic planning and innovation. Implications for theory and practice are discussed.

Stronger may not be better: organizational identity strength and performance of Indian SMEs

While some researchers argue that a strong organizational identity guides strategy and provides shared understanding among employees, others argue that it restricts change and makes it difficult for organizations to respond to external environment. In this study, we demonstrate that an organizational identity which is strong enough to foster shared purpose and clarity of vision but still fluid enough not to become restrictive to change is the optimal condition for small organizations. Data collected from 162 small and medium manufacturing businesses in India demonstrates a curvilinear relationship between identity strength and performance, and this relationship is significantly influenced by participatory decision-making. By utilizing data from a relatively underexplored context of Indian small and medium enterprises, this study attempts to fill a crucial gap in the HRM literature. Implications for theory and HRM practices are discussed.

Proposing a sequential operationalization of absorptive capacity

Purpose This paper makes an attempt to demonstrate the importance of breaking absorptive capacity (AC) into two sequential components, to effectively measure and utilize the construct. Design/methodology/approach Data on potential AC, realized AC and firm performance were collected utilizing survey questionnaire administered to 284 Indian SMEs operating in the automotive service segment. Findings To test the proposed hypotheses, the authors broke AC into its two sequential components – potential AC and realized AC, and tested their linkages with firm performance. The authors not only found the sequential components to be more reliable, but also found better explanation of firm performance. Research limitations/implications The findings in this paper have crucial implications for researchers working in the domain of AC and knowledge management. By demonstrating the operationalization of AC as two sequential components, the authors make a case for more effective utilization of the construct in future studies. Originality/value This study is among the few research attempts that have tried to create a sequential operationalization of AC. The findings clearly reveal that potential AC is an enabler of the realized AC, which in turn enhances firm performance.

Controlling volatility but not growth: firms’ strategic orientations

Purpose While a lot is known about organizational growth, little is understood about how to manage volatility that comes along with growth. This paper, using existing research in this area and the empirical findings of a study by Moreno et al. (2014), offers crucial insights about managing volatility for firms trying to grow at the pace of technological changes. An attempt is made to highlight the differences of growth and volatility in a language that is easily comprehensible to practitioners. Design/methodology/approach The paper is based on existing literature in the area of growth and on author’s personal interactions with the founders of small firms. Findings In this paper, it is argued that firm’s strategic orientations can be used as a contingency of growth–volatility relationship. In other words, firms with a strong entrepreneurial and market orientation are positioned to benefit from the pursuit of growth while still keeping the issues of volatility in control. Practical implications By clearly elucidating the concept of volatility and growth, the paper helps practitioners in finding ways of benefiting from growth and controlling unnecessary volatility. Originality/value This paper is among the limited research attempts addressing the concept of volatility. The finding that growth and volatility are inter-linked but different can be used effectively by practitioners.