Main Article Content
Abstract
Purpose – This study was carried out to analyze the influence of strategic intuition on firm performance through the role of entrepreneurial agility as mediator and environmental dynamism as a moderator.
Design/methodology/approach – This study was conducted using quantitative approach. The number of samples in this study was 280 SMEs actors in Bandung, West Java. The data in this study was collected by distributing questionnaire to the respondents. The data obtained was then processed and analyzed using Structural Equation Modelling with Partial Least Square, using Smart-PLS software.
Findings – The findings of this study proved that: (1) Strategic intuition positively influenced firm performance; (2) Strategic intuition positively influenced entrepreneurial agility; (3) Entrepreneurial agility positively influenced firm performance; (4) Environmental dynamism negatively moderated the relationship between strategic intuition and entrepreneurial agility; and (5) Environmental dynamism negatively moderated the relationship between entrepreneurial agility and firm performance.
Research limitations/implications – This study attempted to understand the concept of entrepreneurship in a dynamic environment using entrepreneurial agility as one of the constructs, and linked it with firm performance. However, this study had not yet differed the respondent based on their business type. Future studies can analyze further about the phenomenon that occurred within different kind of business using different level of analysis, such as comparing the condition within and between group of entrepreneurs.
Practical implications – This study provided contributions to SMEs actors in Bandung, as it can be a consideration for the way they run their business within a volatile business environment.
Originality/value – This study was giving a deep understanding of strategic intuition on firm performance with the mediation role of entrepreneurial dan moderator role of environmental dynamism in the scope of SMEs.
Keywords
Article Details
Copyright (c) 2023 Zulganef Zulganef, Sri Astuti Pratminingsih, Andri Rianawati
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References
- Abbas, J., Raza, S., Nurunnabi, M., Minai, M. S., & Bano, S. (2019). The impact of entrepreneurial business networks on firms’ performance through a mediating role of dynamic capabilities. Sustainability, 11(11), 3006.
- Ahmad, I., & Ahmad, S. B. (2019). The mediation effect of strategic planning on the relationship between business skills and firm’s performance: Evidence from medium enterprises in Punjab, Pakistan. Opción: Revista de Ciencias Humanas y Sociales, (24), 746-778.
- Ahmed, A., Bhatti, S. H., Gölgeci, I., & Arslan, A. (2022). Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism. Technological Forecasting and Social Change, 177, 121513.
- Ashrafi, A., Ravasan, A. Z., Trkman, P., & Afshari, S. (2019). The role of business analytics capabilities in bolstering firms’ agility and performance. International Journal of Information Management, 47(August), 1-15.
- Aujirapongpan, S., Songkajorn, Y., Hareebin, Y., Deelers, S., & Jutidharabongse, J. (2020a). Indicators of strategic intuition for SMEs' entrepreneurs: evidence from Thailand. Entrepreneurship and Sustainability Issues, 8(2), 51-63.
- Aujirapongpan, S., Ru-Zhe, J., & Jutidharabongse, J. (2020b). Strategic intuition capability toward performance of entrepreneurs: Evidence from Thailand. The Journal of Asian Finance, Economics and Business, 7(6), 465-473.
- Aujirapongpan, S., & Hareebin, Y. (2020). The effect of strategic intuition, business analytic, networking capabilities and dynamic strategy on innovation performance: The empirical study Thai processed food exporters. The Journal of Asian Finance, Economics and Business, 7(1), 259-268.
- Aydiner, A. S., Tatoglu, E., Bayraktar, E., Zaim, S., & Delen, D. (2019). Business analytics and firm performance: The mediating role of business process performance. Journal of Business Research, 96(March), 228-237.
- Boadu, F., Du, Y., Xie, Y., & Dwomo-Fokuo, E. (2021). Knowledge transfer received, entrepreneurial opportunity type, environmental dynamism, and innovative performance by overseas subsidiaries in China. Technology Analysis & Strategic Management, 1-18.
- Chan, H. K., Yee, R. W., Dai, J., & Lim, M. K. (2016). The moderating effect of environmental dynamism on green product innovation and performance. International Journal of Production Economics, 181(November), 384-391.
- Charoensukmongkol, P. (2021). Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?. Management Research Review, 45(1), 26-46.
- Chen, X., & Siau, K. (2020). Business analytics/business intelligence and IT infrastructure: impact on organizational agility. Journal of Organizational and End User Computing (JOEUC), 32(4), 138-161.
- Deng, X., Guo, X., Wu, Y. J., & Chen, M. (2021). Perceived environmental dynamism promotes entrepreneurial team member’s innovation: explanations based on the uncertainty reduction theory. International journal of environmental research and public health, 18(4), 2033.
- Duggan, W. (2013). Strategic intuition: The creative spark in human achievement. Columbia University Press.
- Giampaoli, D., Aureli, S., & Ciambotti, M. (2019, September). Knowledge management, strategic decision-making, intuition and planning effectiveness. In Proceedings of the European Conference on Knowledge Management (Vol. 1, pp. 371-380).
- Hindrawati, G., Dhewanto, W., & Dellyana, D. (2022). Does Innovative Millennial Entrepreneurship have a role in fostering cyber learning on business performance? A perspective of entrepreneurial agility. The International Journal of Entrepreneurship and Innovation, 14657503211066011.
- Jutidharabongse, J., Aujirapongpan, S., & Ritkaew, S. (2020). Dynamic knowledge management capability and strategic intuition of Thai entrepreneurs. Entrepreneurship and Sustainability Issues, 7(4), 2955.
- Karimi, J., & Walter, Z. (2021). The role of entrepreneurial agility in digital entrepreneurship and creating value in response to digital disruption in the newspaper industry. Sustainability, 13(5), 2741.
- Khouroh, U. (2019). The role of strategic alliance in mediating the relationship between environmental dynamism and sustainable competitive advantage. International Journal of Scientific and Technology Research, 8(9), 469-475.
- Kohtamäki, M., Heimonen, J., Sjödin, D., & Heikkilä, V. (2020). Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. Journal of Business Research, 118(September), 12-25.
- Kumar, S., & Bhatia, M. S. (2021). Environmental dynamism, industry 4.0 and performance: Mediating role of organizational and technological factors. Industrial Marketing Management, 95(May), 54-64.
- Luoma, J., & Martela, F. (2021). A dual-processing view of three cognitive strategies in strategic decision making: Intuition, analytic reasoning, and reframing. Long Range Planning, 54(3), 102065.
- Mintzberg, H. (1994). Rethinking strategic planning part I: Pitfalls and fallacies. Long range planning, 27(3), 12-21.
- Mohammad, H. I. (2019). Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance. Journal of strategy and management. 12(2), 275-297.
- Mulyana, M., & Hendar, H. (2020). Market and entrepreneurial orientation on business performance: role of networks innovation agility. Journal of Small Business & Entrepreneurship, 1-17.
- Sadeghi-Moghaddam, S., Hajiaghaei-Keshteli, M., & Mahmoodjanloo, M. (2019). New approaches in metaheuristics to solve the fixed charge transportation problem in a fuzzy environment. Neural computing and applications, 31(1), 477-497.
- Saeed, M. A., Jiao, Y., Zahid, M. M., Tabassum, H., & Nauman, S. (2020). Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism. International Journal of Managing Projects in Business, 14(3), 600-624.
- Songkajorn, Y., Aujirapongpan, S., Jiraphanumes, K., & Pattanasing, K. (2022). Organizational Strategic Intuition for High Performance: The Role of Knowledge-Based Dynamic Capabilities and Digital Transformation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 117.
- Sopelana, A., Kunc, M., & Hernáez, O. R. (2010). Organizational flexibility: a dynamic evaluation of Volberda's theory. In 28th International Conference of the System Dynamics Society (pp. 1191-1218).
- Taghizadeh, S. K., Karini, A., Nadarajah, G., & Nikbin, D. (2020). Knowledge management capability, environmental dynamism and innovation strategy in Malaysian firms. Management Decision, 59(6), 1386-1405.
- Tajeddini, K., & Mueller, S. (2019). Moderating effect of environmental dynamism on the relationship between a firm’s entrepreneurial orientation and financial performance. Entrepreneurship Research Journal, 9(4), 1-14.
- Thanos, I. C. (2022). The complementary effects of rationality and intuition on strategic decision quality. European Management Journal. 1-9.
- Varshney, D., & Varshney, N. K. (2020). Workforce agility and its links to emotional intelligence and workforce performance: A study of small entrepreneurial firms in India. Global Business and Organizational Excellence, 39(5), 35-45.
- Wairimu, J., Liao, Q., & Zhang, L. (2021). Digital Investments in Organizational Learning and Entrepreneurial Agility. Journal of Computer Information Systems, 1-13.
- Xing, Y., Liu, Y., Boojihawon, D. K., & Tarba, S. (2020). Entrepreneurial team and strategic agility: A conceptual framework and research agenda. Human Resource Management Review, 30(1), 100696.
- Yu, W., Ramanathan, R., Wang, X., & Yang, J. (2018). Operations capability, productivity and business performance: The moderating effect of environmental dynamism. Industrial Management & Data Systems, 118(1), 126-143.
- Zhang, F., & Zhu, L. (2021). Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: the moderating roles of TMT heterogeneity and environmental dynamism. Journal of Business Research, 133, 183-193.
References
Abbas, J., Raza, S., Nurunnabi, M., Minai, M. S., & Bano, S. (2019). The impact of entrepreneurial business networks on firms’ performance through a mediating role of dynamic capabilities. Sustainability, 11(11), 3006.
Ahmad, I., & Ahmad, S. B. (2019). The mediation effect of strategic planning on the relationship between business skills and firm’s performance: Evidence from medium enterprises in Punjab, Pakistan. Opción: Revista de Ciencias Humanas y Sociales, (24), 746-778.
Ahmed, A., Bhatti, S. H., Gölgeci, I., & Arslan, A. (2022). Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism. Technological Forecasting and Social Change, 177, 121513.
Ashrafi, A., Ravasan, A. Z., Trkman, P., & Afshari, S. (2019). The role of business analytics capabilities in bolstering firms’ agility and performance. International Journal of Information Management, 47(August), 1-15.
Aujirapongpan, S., Songkajorn, Y., Hareebin, Y., Deelers, S., & Jutidharabongse, J. (2020a). Indicators of strategic intuition for SMEs' entrepreneurs: evidence from Thailand. Entrepreneurship and Sustainability Issues, 8(2), 51-63.
Aujirapongpan, S., Ru-Zhe, J., & Jutidharabongse, J. (2020b). Strategic intuition capability toward performance of entrepreneurs: Evidence from Thailand. The Journal of Asian Finance, Economics and Business, 7(6), 465-473.
Aujirapongpan, S., & Hareebin, Y. (2020). The effect of strategic intuition, business analytic, networking capabilities and dynamic strategy on innovation performance: The empirical study Thai processed food exporters. The Journal of Asian Finance, Economics and Business, 7(1), 259-268.
Aydiner, A. S., Tatoglu, E., Bayraktar, E., Zaim, S., & Delen, D. (2019). Business analytics and firm performance: The mediating role of business process performance. Journal of Business Research, 96(March), 228-237.
Boadu, F., Du, Y., Xie, Y., & Dwomo-Fokuo, E. (2021). Knowledge transfer received, entrepreneurial opportunity type, environmental dynamism, and innovative performance by overseas subsidiaries in China. Technology Analysis & Strategic Management, 1-18.
Chan, H. K., Yee, R. W., Dai, J., & Lim, M. K. (2016). The moderating effect of environmental dynamism on green product innovation and performance. International Journal of Production Economics, 181(November), 384-391.
Charoensukmongkol, P. (2021). Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?. Management Research Review, 45(1), 26-46.
Chen, X., & Siau, K. (2020). Business analytics/business intelligence and IT infrastructure: impact on organizational agility. Journal of Organizational and End User Computing (JOEUC), 32(4), 138-161.
Deng, X., Guo, X., Wu, Y. J., & Chen, M. (2021). Perceived environmental dynamism promotes entrepreneurial team member’s innovation: explanations based on the uncertainty reduction theory. International journal of environmental research and public health, 18(4), 2033.
Duggan, W. (2013). Strategic intuition: The creative spark in human achievement. Columbia University Press.
Giampaoli, D., Aureli, S., & Ciambotti, M. (2019, September). Knowledge management, strategic decision-making, intuition and planning effectiveness. In Proceedings of the European Conference on Knowledge Management (Vol. 1, pp. 371-380).
Hindrawati, G., Dhewanto, W., & Dellyana, D. (2022). Does Innovative Millennial Entrepreneurship have a role in fostering cyber learning on business performance? A perspective of entrepreneurial agility. The International Journal of Entrepreneurship and Innovation, 14657503211066011.
Jutidharabongse, J., Aujirapongpan, S., & Ritkaew, S. (2020). Dynamic knowledge management capability and strategic intuition of Thai entrepreneurs. Entrepreneurship and Sustainability Issues, 7(4), 2955.
Karimi, J., & Walter, Z. (2021). The role of entrepreneurial agility in digital entrepreneurship and creating value in response to digital disruption in the newspaper industry. Sustainability, 13(5), 2741.
Khouroh, U. (2019). The role of strategic alliance in mediating the relationship between environmental dynamism and sustainable competitive advantage. International Journal of Scientific and Technology Research, 8(9), 469-475.
Kohtamäki, M., Heimonen, J., Sjödin, D., & Heikkilä, V. (2020). Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. Journal of Business Research, 118(September), 12-25.
Kumar, S., & Bhatia, M. S. (2021). Environmental dynamism, industry 4.0 and performance: Mediating role of organizational and technological factors. Industrial Marketing Management, 95(May), 54-64.
Luoma, J., & Martela, F. (2021). A dual-processing view of three cognitive strategies in strategic decision making: Intuition, analytic reasoning, and reframing. Long Range Planning, 54(3), 102065.
Mintzberg, H. (1994). Rethinking strategic planning part I: Pitfalls and fallacies. Long range planning, 27(3), 12-21.
Mohammad, H. I. (2019). Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance. Journal of strategy and management. 12(2), 275-297.
Mulyana, M., & Hendar, H. (2020). Market and entrepreneurial orientation on business performance: role of networks innovation agility. Journal of Small Business & Entrepreneurship, 1-17.
Sadeghi-Moghaddam, S., Hajiaghaei-Keshteli, M., & Mahmoodjanloo, M. (2019). New approaches in metaheuristics to solve the fixed charge transportation problem in a fuzzy environment. Neural computing and applications, 31(1), 477-497.
Saeed, M. A., Jiao, Y., Zahid, M. M., Tabassum, H., & Nauman, S. (2020). Organizational flexibility and project portfolio performance: the roles of innovation, absorptive capacity and environmental dynamism. International Journal of Managing Projects in Business, 14(3), 600-624.
Songkajorn, Y., Aujirapongpan, S., Jiraphanumes, K., & Pattanasing, K. (2022). Organizational Strategic Intuition for High Performance: The Role of Knowledge-Based Dynamic Capabilities and Digital Transformation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 117.
Sopelana, A., Kunc, M., & Hernáez, O. R. (2010). Organizational flexibility: a dynamic evaluation of Volberda's theory. In 28th International Conference of the System Dynamics Society (pp. 1191-1218).
Taghizadeh, S. K., Karini, A., Nadarajah, G., & Nikbin, D. (2020). Knowledge management capability, environmental dynamism and innovation strategy in Malaysian firms. Management Decision, 59(6), 1386-1405.
Tajeddini, K., & Mueller, S. (2019). Moderating effect of environmental dynamism on the relationship between a firm’s entrepreneurial orientation and financial performance. Entrepreneurship Research Journal, 9(4), 1-14.
Thanos, I. C. (2022). The complementary effects of rationality and intuition on strategic decision quality. European Management Journal. 1-9.
Varshney, D., & Varshney, N. K. (2020). Workforce agility and its links to emotional intelligence and workforce performance: A study of small entrepreneurial firms in India. Global Business and Organizational Excellence, 39(5), 35-45.
Wairimu, J., Liao, Q., & Zhang, L. (2021). Digital Investments in Organizational Learning and Entrepreneurial Agility. Journal of Computer Information Systems, 1-13.
Xing, Y., Liu, Y., Boojihawon, D. K., & Tarba, S. (2020). Entrepreneurial team and strategic agility: A conceptual framework and research agenda. Human Resource Management Review, 30(1), 100696.
Yu, W., Ramanathan, R., Wang, X., & Yang, J. (2018). Operations capability, productivity and business performance: The moderating effect of environmental dynamism. Industrial Management & Data Systems, 118(1), 126-143.
Zhang, F., & Zhu, L. (2021). Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: the moderating roles of TMT heterogeneity and environmental dynamism. Journal of Business Research, 133, 183-193.