Article Sidebar

Submitted
June 7, 2024
Accepted
August 26, 2024
Published
August 27, 2024
Download
Full text PDF
Statistic
Read Counter : 202 Download : 116

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This study aims to understand the influence of organizational agility and organizational resilience towards SMEs business performance and analyze the mediating role of strategic change and the moderating role of environmental uncertainty.
Design/methodology/approach – This study uses quantitative approach with survey method. The population of the study is SMEs business actors in Bandung, West Java. The samples are chosen for about 250 respondents using purposive sampling, while the data is processed using structural equation modelling with Partial Least Square.
Findings – The results indicate positive influence of organizational agility on organizational resilience, as well as organizational resilience on SMEs business growth. Additionally, strategic change is found to mediate the relationship of organizational resilience towards SMEs business growth. Environmental uncertainty can strengthen the influence of organizational resilience on strategic change.
Research limitations/implications – The results of this research provide evidence that the underlying mechanisms for increasing organizational resilience and SME business growth can be seen from the perspective of organizational agility and choosing the right strategy.
Practical implications – This study underscores the importance of building organizational agility and resilience to face dynamic environmental situation characterized by rapid change. When SMEs are adaptive and more responsive in carrying out their business, this can lead to positive outcomes for their growth.
Originality/value – The present study provides the underlying mechanisms that shows how organizational agility and resilience can lead to SMEs business growth which operate in the uncertain environment.

Keywords

Organizational agility organizational resilience strategic change environmental uncertainty SME’s business growth

Article Details

License

Copyright (c) 2024 Ahmad Johan, Sriwardani Sriwardani, Rizky Ferrari Oktavian

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Johan, A., Sriwardani, S., & Oktavian, R. F. (2024). Exploring succession in small business growth in Bandung: Mediating role of strategic change. Jurnal Siasat Bisnis, 28(2), 209–224. https://doi.org/10.20885/jsb.vol28.iss2.art5
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Arsawan, I. W. E., Hariyanti, N. K. D., Atmaja, I. M. A. D. S., Suhartanto, D., & Koval, V. (2022). Developing Organizational Agility in SMEs: An Investigation of Innovation’s Roles and Strategic Flexibility. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 149. https://doi.org/10.3390/joitmc8030149
  2. Bi, R., Davidson, R., Kam, B., & Smyrnios, K. (2013). Developing Organizational Agility through IT and Supply Chain Capability. Journal of Global Information Management, 21(4), 38–55. https://doi.org/10.4018/jgim.2013100103
  3. Chen, R., Liu, Y., & Zhou, F. (2021). Turning Danger into Safety: The Origin, Research Context and Theoretical Framework of Organizational Resilience. IEEE Access, 9, 48899–48913. https://doi.org/10.1109/ACCESS.2021.3069301
  4. Dewi, I. R. (2023). UMKM RI Mentok Susah Naik Kelas Digencet Reseller. CNBC Indonesia. https://www.cnbcindonesia.com/news/20231120180210-4-490517/umkm-ri-mentok-susah-naik-kelas-digencet-reseller
  5. Didonet, S., & Diaz-Villavicencio, G. (2020). Innovation management in market-oriented SMEs: learning and internal arrangements for innovation. International Journal of Organizational Analysis, 28(5), 985–1003. https://doi.org/10.1108/IJOA-09-2019-1885
  6. Eisenhardt, K. M. (1989). Making Fast Strategic Decisions In High-Velocity Environments. Academy of Management Journal, 32(3), 543–576. https://www.jstor.org/stable/256434
  7. Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
  8. Fatoki, O. (2018). The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa. Sustainability, 10(7), 2527. https://doi.org/10.3390/su10072527
  9. Gading, S. (2023). Ini Dia Penyebab UMKM di RI Susah buat Naik Kelas. Detikfinance. https://finance.detik.com/berita-ekonomi-bisnis/d-6932993/ini-dia-penyebab-umkm-di-ri-susah-buat-naik-kelas
  10. Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic Management Journal, 15(3), 241–250. https://doi.org/10.1002/smj.4250150305
  11. Guo, Y., Chen, Y., Usai, A., Wu, L., & Qin, W. (2023). Knowledge integration for resilience among multinational SMEs amid the COVID-19: from the view of global digital platforms. Journal of Knowledge Management, 27(1), 84–104. https://doi.org/10.1108/JKM-02-2022-0138
  12. Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.
  13. Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107. https://doi.org/10.1504/ijmda.2017.10008574
  14. Hamel, G., & Välikangas, L. (2003, September). The Quest for Resilience. Harvard Business Review On Point, 13. https://trans.kuciv.kyoto-u.ac.jp/resilience/material/pdf/2012_06_21/HBRQuestforResilience.pdf
  15. Hasayotin, K. (2023). Disaster Resilience, Social Resilience, Organizational Resilience, and Business Resilience Impact Towards the Growth of MNCS in Australia. International Journal of Professional Business Review, 8(10), e03559. https://doi.org/10.26668/businessreview/2023.v8i10.3559
  16. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
  17. Hillmann, J., & Guenther, E. (2021). Organizational Resilience: A Valuable Construct for Management Research? International Journal of Management Reviews, 23(1), 7–44. https://doi.org/10.1111/ijmr.12239
  18. Ibrahim, M. (2023). Survei FEB UI Ungkap Banyak UMKM Sulit Naik Kelas, Apa Penyebabnya? (G. Pratama (ed.)). Infobanknews.Com. https://infobanknews.com/survei-feb-ui-ungkap-banyak-umkm-sulit-naik-kelas-apa-penyebabnya/
  19. Karman, A. (2020). Flexibility, coping capacity and resilience of organizations: between synergy and support. Journal of Organizational Change Management, 33(5), 883–907. https://doi.org/10.1108/JOCM-10-2019-0305
  20. Kim, K. K., Ryoo, S. Y., & Lee, H. (2016). Environmental uncertainty and interorganizational information sharing: Accommodating manufacturer and supplier perspectives. Information Development, 32(5), 1485–1502. https://doi.org/10.1177/0266666915608425
  21. Liang, L., & Li, Y. (2023). The double-edged sword effect of organizational resilience on ESG performance. Corporate Social Responsibility and Environmental Management, 30(6), 2852–2872. https://doi.org/10.1002/csr.2520
  22. Liang, L., & Li, Y. (2024). How does organizational resilience promote firm growth? The mediating role of strategic change and managerial myopia. Journal of Business Research, 177, 114636. https://doi.org/10.1016/j.jbusres.2024.114636
  23. Lopez, E., Flecha-Ortiz, J. A., Santos-Corrada, M., & Dones, V. (2024). The role of organizational resilience in SME service innovation and value cocreation. Journal of Services Marketing, 38(4), 443–459. https://doi.org/10.1108/JSM-03-2023-0081
  24. Lotfi, M., & Saghiri, S. (2018). Disentangling resilience, agility and leanness: Conceptual development and empirical analysis. Journal of Manufacturing Technology Management, 29(1), 168–197. https://doi.org/10.1108/jmtm-01-2017-0014
  25. Mao, H., Liu, S., & Zhang, J. (2015). How the effects of IT and knowledge capability on organizational agility are contingent on environmental uncertainty and information intensity. Information Development, 31(4), 358–382. https://doi.org/10.1177/0266666913518059
  26. Masroor, N., & Asim, M. (2019). SMEs in the Contemporary Era of Global Competition. In X. Zeng, J. Aje, S. Baek, I. Bojanova, F. Bouthillier, F. C. Ortiz, A. Carswell, I. Casas, G. Darkazalli, E. Edmonds, R. Khan, M. Koval, M. Levy, B. Lin, R. McCarthy, W. Pedrycz, Z. Wang, & F. Xhafa (Eds.), Procedia Computer Science (Vol. 158, pp. 632–641). Elsevier B.V. https://doi.org/10.1016/j.procs.2019.09.097
  27. Mintzberg, H. (1990). The design school: Reconsidering the basic premises of strategic management. Strategic Management Journal, 11(3), 171–195. https://doi.org/10.1002/smj.4250110302
  28. Moore, J. R. (1960). Review: [Untitled]. Southern Economic Journal, 27(2), 151–152. https://doi.org/10.2307/1055183
  29. Mulyana, M., Nurhayati, T., & Putri, E. R. P. (2023). Value Creation Agility on Business Performance: An Empirical Study in Retail Fashion SMEs. Journal of Creating Value, 10(1), 102–115. https://doi.org/10.1177/23949643231205839
  30. Ouzaka, B., Gouch, M. El, Ouhadi, S., & Kadouri, A. (2022). Theoretical Exploration of the Organizational Resilience Factors of the Family-Owned SMEs during the COVID-19 Crisis. Cross Current International Journal of Economics, Management and Media Studies, 4(4), 57–63. https://doi.org/10.36344/ccijemms.2022.v04i04.003
  31. Panda, S., & Rath, S. K. (2018). Modelling the Relationship Between Information Technology Infrastructure and Organizational Agility: A Study in the Context of India. Global Business Review, 19(2), 424–438. https://doi.org/10.1177/0972150917713545
  32. Penrose, E. (1995). The Theory of the Growth of the Firm (3rd ed.). Oxford Academic. https://doi.org/10.1093/0198289774.001.0001
  33. Pertheban, T. R., Thurasamy, R., Marimuthu, A., Venkatachalam, K. R., Annamalah, S., Paraman, P., & Hoo, W. C. (2023). The Impact of Proactive Resilience Strategies on Organizational Performance: Role of Ambidextrous and Dynamic Capabilities of SMEs in Manufacturing Sector. Sustainability, 15(16), 12665. https://doi.org/10.3390/su151612665
  34. Sahebjamnia, N., Torabi, S. A., & Mansouri, S. A. (2018). Building organizational resilience in the face of multiple disruptions. International Journal of Production Economics, 197, 63–83. https://doi.org/10.1016/j.ijpe.2017.12.009
  35. Sajko, M., Boone, C., & Buyl, T. (2021). CEO Greed, Corporate Social Responsibility, and Organizational Resilience to Systemic Shocks. Journal of Management, 47(4), 957–992. https://doi.org/10.1177/0149206320902528
  36. Sarwoko, E., & Frisdiantara, C. (2016). Growth Determinants of Small Medium Enterprises (SMEs). Universal Journal of Management, 4(1), 36–41. https://doi.org/10.13189/ujm.2016.040105
  37. Shafer, R. A., Dyer, L., Kilty, J., Amos, J., & Ericksen, J. (2001). Crafting a Human Resource Strategy to Foster Organizational Agility: A Case Study. Human Resource Management, 40(3), 197–211. https://doi.org/10.1002/hrm.1011
  38. Sherehiy, B., Karwowski, W., & Layer, J. K. (2007). A review of enterprise agility: Concepts, frameworks, and attributes. International Journal of Industrial Ergonomics, 37(5), 445–460. https://doi.org/10.1016/j.ergon.2007.01.007
  39. Smith, K. G., & Grimm, C. M. (1987). Environmental variation, strategic change and firm performance: A study of railroad deregulation. Strategic Management Journal, 8(4), 363–376. https://doi.org/https://doi.org/10.1002/smj.4250080406
  40. Syamsari, S., Maarif, M. S., Anggraeni, E., & Amanah, S. (2022). Characteristics of Fishery Industry MSMEs in Takalar Regency that are Resistant to Interferences in Uncertainty Era. Journal of Social Science, 3(4), 851–863. https://doi.org/10.46799/jss.v3i4.374
  41. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://www.jstor.org/stable/3088148
  42. Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. https://doi.org/10.1525/cmr.2016.58.4.13
  43. Teixeira, E. de O., & Werther, W. B. (2013). Resilience: Continuous renewal of competitive advantages. Business Horizons, 56(3), 333–342. https://doi.org/10.1016/j.bushor.2013.01.009
  44. Wang, M. C., & Fang, S. C. (2012). The moderating effect of environmental uncertainty on the relationship between network structures and the innovative performance of a new venture. Journal of Business & Industrial Marketing, 27(4), 311–323. https://doi.org/10.1108/08858621211221689
  45. Wang, W., Sun, Z., Wang, W., Hua, Q., & Wu, F. (2023). The impact of environmental uncertainty on ESG performance: Emotional vs. rational. Journal of Cleaner Production, 397, 136528. https://doi.org/10.1016/j.jclepro.2023.136528
  46. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2015). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability (S. Wall, D. Tylman, D. Mukherjee, S. Ukil, B. Ollila, & B. Surette (eds.); 14th ed.). Pearson Education Limited. https://elearn.daffodilvarsity.edu.bd/pluginfile.php/946325/mod_page/intro/Strategic Management and Business Policy_ Globalization%2C Innovation and Sustainability by Wheelen Thomas%2C Hoffman Alan%2C Bamford Charles%2C Hunger David.pdf
  47. Witmer, H., & Mellinger, M. S. (2016). Organizational resilience: Nonprofit organizations’ response to change. Work, 54(2), 255–265. https://doi.org/10.3233/WOR-162303
  48. Yağmur, Ö. B., & Myrvang, ursel A. (2023). The effect of organizational agility on crisis management process and organizational resilience: Health sector example. International Journal of Disaster Risk Reduction, 96, 103955. https://doi.org/10.1016/j.ijdrr.2023.103955
  49. Yi, Y., He, X., Ndofor, H., & Wei, Z. (2015). Dynamic Capabilities and the Speed of Strategic Change: Evidence From China. IEEE Transactions on Engineering Management, 62(1), 18–28. https://doi.org/10.1109/TEM.2014.2365524
  50. Zabłocka-Kluczka, A., & Sałamacha, A. K. (2023). Organizational resilience as the mediator of relation between brand performance and organizational performance – reflections from the perspective of crisis times. Journal of Organizational Change Management, 36(6), 932–949. https://doi.org/10.1108/JOCM-04-2023-0122
  51. Zastempowski, M., & Cyfert, S. (2023). A new angle on SMEs’ competitiveness. How do agility capabilities affect a firm’s competitive position? Journal of Organizational Change Management, 36(4), 635–662. https://doi.org/10.1108/JOCM-09-2022-0255
  52. Zhao, X., Lynch Jr., J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257