ENHANCING THE PERFORMANCE OF SMEs POST COVID-19: THE ROLE OF STRATEGIC LEADERSHIP CAPABILITIES
DOI:
https://doi.org/10.46273/jobe.v11i1.286Keywords:
Covid-19, Nigeria, Innovative Capability, LeadershipAbstract
Small and medium enterprises had difficulty coping with the Covid-19 pandemic as very few SMEs have made it through it, particularly in Nigeria. Strategic leadership has been acknowledged as a crucial asset and one of the driving forces of success among SMEs. This study examined the impact of strategic leadership on the performance of SMEs in Lagos, Nigeria, adopting a mixed-method approach. A total of 400 complete responses from SME managers were analyzed. While simple regression was applied for the analysis of the returned copies of the questionnaire, the qualitative interview results were obtained through thematic analysis. The results indicate that innovation capabilities significantly impact organizational performance. Hence, the study recommends that focusing on innovative capability of strategic leadership such as new product development, innovation activities, marketing intelligence, value creation and new ideas with radical changes are germane for enhancing performance.
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Odoom, R., & Mensah, P. (2018). Brand orientation and brand performance in SMEs: The moderating effects of social media and innovation capabilities. Management Research Review, 42(1), 155-171.
Parthasarathy, R., Huang, C., & Aris, S. (2011). Impact of Dynamic Capability on Innovation, Value Creation and Industry Leadership. The IUP Journal of Knowledge Management, 9(3), 59-73.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. Wiley.
Pisapia, J. (2009). The strategic leader: New tactics for a globalizing world. Information Age Publishing.
Ribau, C. P., Moreira, A. C., & Raposo, M. (2017). SMEs innovation capabilities and export performance: An entrepreneurial orientation view. Journal of Business Economics and Management, 18(5), 920-934.
Rosli, M. M., & Sidek, S. (2013). The Impact of innovation on the performance of small and medium manufacturing enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013, 1-16.
Samad, S. (2013). Assessing the contribution of human capital on business performance. International Journal of Trade, Economics and Finance, 4(6), 393.
Santos, M. J., Perin, M. G., Simões, C., & Sampaio, C. H. (2020). Customer orientation and financial performance relationship: the mediating role of innovative capability. Gestão & Produção, 27(4), e4706.
Saunila, M. (2017). Innovation capability in achieving higher performance: Perspectives of management and employees. Technology Analysis & Strategic Management, 29(8), 903-916.
Subramanian, A., & Nilakanta, S. (1996). Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance. Omega, 24(6), 631-647.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
Töre, E., & Çilek, A. (2021). The Effects of Strategic Leadership Behaviors of School Managers on Crises Management. Turkish Online Journal of Qualitative Inquiry, 12(8), 3386-3401.
Walden, R., Lie, S., Pandolfo, B., & Nemme, A. (2020). Developing strategic leadership and innovation capability for manufacturing SMEs transitioning to digital manufacturing technology. In Leadership Styles, Innovation, and Social Entrepreneurship in the Era of Digitalization (pp. 164-189). IGI Global.
Zhang, M., & Hartley, J. L. (2018). Guanxi, IT systems, and innovation capability: The moderating role of proactiveness. Journal of Business Research, 90, 75-86.
Alayoubi, M. M., Al Shobaki, M. J., & Abu-Naser, S. S. (2020). Strategic leadership practices and their relationship to improving the quality of educational service in Palestinian Universities. International Journal of Business Marketing and Management (IJBMM), 5(3), 11-26.
Ali, B. J., & Anwar, G. (2021). Strategic leadership effectiveness and its influence on organizational effectiveness. International Journal of Electrical, Electronics and Computers, 6(2), 11-24.
Anwar, K., & Balcioglu, H. (2016). The relationship between transformational leadership characteristics and effectiveness: A case study of construction companies in Erbil. International Journal of Science Technology and Management, 5(2), 250-256
Arshad, M., & Arshad, D. (2019). Internal capabilities and SMEs performance: A case of textile industry in Pakistan. Management Science Letters, 9(4), 621-628.
Asmawi, A., Zakaria, S., & Chin Wei, C. (2013). Understanding transformational leadership and R&D culture in Malaysian universities. Innovation, 15(3), 287-304.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Capon, N., Farley, J. U., & Hoenig, S. (1990). Determinants of financial performance: a meta-analysis. Management science, 36(10), 1143-1159.
Carter, S. M., & Greer, C. R. (2013). Strategic leadership: Values, styles, and organizational performance. Journal of Leadership & Organizational Studies, 20(4), 375-393.
Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100, 196-206.
Chandler, G. N., & Hanks, S. H. (1994). Founder competence, the environment, and venture performance. Entrepreneurship Theory and Practice, 18(3), 77-89.
Collis, D. J., & Montgomery, C. A. (1995). Competing on resources: Strategy in the 1990s. Harvard Business Review. https://hbr.org/1995/07/competing-on-resources-strategy-in-the-1990s
Dadfar, H., Dahlgaard, J. J., Brege, S., & Alamirhoor, A. (2013). Linkage between organisational innovation capability, product platform development and performance: The case of pharmaceutical small and medium enterprises in Iran. Total Quality Management & Business Excellence, 24(7-8), 819-834.
Davies, B. J., & Davies, B. (2006). Developing a model for strategic leadership in schools. Educational Management Administration & Leadership, 34(1), 121-139.
Ellinger, A. D., & Ellinger, A. E. (2021). Providing strategic leadership for learning: Optimizing managerial coaching to build learning organizations. The Learning Organization, 28(4), 337-351.
Gottschalk, P., & Solli‐Sæther, H. (2005). Critical success factors from IT outsourcing theories: an empirical study. Industrial Management & Data Systems, 105(6), 685-702.
Grant, R. M. (1991). The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3), 114-135.
Hafeez, K., Malak, N., & Zhang, Y. (2007). Outsourcing non-core assets and competences of a firm using analytic hierarchy process. Computers & Operations Research, 34(12), 3592-3608.
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193-206.
Hitt, M. A., Ireland, R. D., Hoskisson, R. E., Sacristan, P. M., & Moreno, M. P. S. (2015). Administración Estratégica: Competitividad y Globalización: Conceptos y Casos. Cengage Learning.
Jabbar, A. A., & Hussein, A. M. (2017). The Role of Leadership in Strategic Management. International Journal of Research, 5(5), 99- 106
Kleijnen, M., Lee, N., & Wetzels, M. (2009). An exploration of consumer resistance to innovation and its antecedents. Journal of Economic Psychology, 30(3), 344-357.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.
McIvor, R. (2009). How the transaction cost and resource-based theories of the firm inform outsourcing evaluation. Journal of Operations Management, 27(1), 45-63.
Montgomery, C. A., & Collis, D. (1995). Competing on resources: strategy in the 1990s. Harvard Business Review, 73(4), 118-128.
Mui, H. K. Y., Basit, A., & Hassan, Z. (2018). The Impact of Strategic Leadership on Organizational Performance of Small Medium Enterprises (SME) in Malaysia. Journal of Leadership and Management, 13, 154-166.
Mui, H. K. Y., Basit, A., & Hassan, Z. (2018). The impact of strategic leadership on organizational performance of small medium enterprises (SME) in Malaysia. Journal of Leadership and Management, 13(9), 154-166.
Odoom, R., & Mensah, P. (2018). Brand orientation and brand performance in SMEs: The moderating effects of social media and innovation capabilities. Management Research Review, 42(1), 155-171.
Parthasarathy, R., Huang, C., & Aris, S. (2011). Impact of Dynamic Capability on Innovation, Value Creation and Industry Leadership. The IUP Journal of Knowledge Management, 9(3), 59-73.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. Wiley.
Pisapia, J. (2009). The strategic leader: New tactics for a globalizing world. Information Age Publishing.
Ribau, C. P., Moreira, A. C., & Raposo, M. (2017). SMEs innovation capabilities and export performance: An entrepreneurial orientation view. Journal of Business Economics and Management, 18(5), 920-934.
Rosli, M. M., & Sidek, S. (2013). The Impact of innovation on the performance of small and medium manufacturing enterprises: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013, 1-16.
Samad, S. (2013). Assessing the contribution of human capital on business performance. International Journal of Trade, Economics and Finance, 4(6), 393.
Santos, M. J., Perin, M. G., Simões, C., & Sampaio, C. H. (2020). Customer orientation and financial performance relationship: the mediating role of innovative capability. Gestão & Produção, 27(4), e4706.
Saunila, M. (2017). Innovation capability in achieving higher performance: Perspectives of management and employees. Technology Analysis & Strategic Management, 29(8), 903-916.
Subramanian, A., & Nilakanta, S. (1996). Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance. Omega, 24(6), 631-647.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
Töre, E., & Çilek, A. (2021). The Effects of Strategic Leadership Behaviors of School Managers on Crises Management. Turkish Online Journal of Qualitative Inquiry, 12(8), 3386-3401.
Walden, R., Lie, S., Pandolfo, B., & Nemme, A. (2020). Developing strategic leadership and innovation capability for manufacturing SMEs transitioning to digital manufacturing technology. In Leadership Styles, Innovation, and Social Entrepreneurship in the Era of Digitalization (pp. 164-189). IGI Global.
Zhang, M., & Hartley, J. L. (2018). Guanxi, IT systems, and innovation capability: The moderating role of proactiveness. Journal of Business Research, 90, 75-86.
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Published
2023-05-16
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How to Cite
ENHANCING THE PERFORMANCE OF SMEs POST COVID-19: THE ROLE OF STRATEGIC LEADERSHIP CAPABILITIES (F. O. Peter, M. M. Adeniyi, A. Sajuyigbe, A. O. Peter, & S. B. Adeoti , Trans.). (2023). Journal of Business And Entrepreneurship, 11(1), 1-9. https://doi.org/10.46273/jobe.v11i1.286
