IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v11y2022i1d10.1186_s13731-022-00232-5.html
   My bibliography  Save this article

Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis

Author

Listed:
  • Marvello Yang

    (Widya Dharma University Pontianak)

  • Norizan Jaafar

    (University Malaysia Sarawak)

  • Abdullah Al Mamun

    (Universiti Kebangsaan Malaysia)

  • Anas A. Salameh

    (Prince Sattam Bin Abdulaziz University)

  • Noorshella Che Nawi

    (Universiti Malaysia Kelantan)

Abstract

Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic orientation and economic sustainability under unpredictable circumstances. This study collected quantitative data from a total of 284 halal small and medium enterprises (SMEs) from Indonesia through structured interviews. Data were analysed using partial least squares structural equation modelling (PLS-SEM). Moreover, this study adopted artificial neural network (ANN) analysis for a model-free estimation using non-linear, multilayer, and parallel regression. The results revealed statistically significant and positive effect of strategic orientation on economic sustainability. Additionally, this study found that competitive advantage expanded the effect of strategic orientation on economic sustainability. Findings of ANN analysis confirm high prediction accuracy of the model. Findings of the sensitivity analysis highlighted the importance of innovation, network and technological orientation, and the positive effect of competitive advantage on halal SMEs economic sustainability. In order to achieve long-term economic sustainability, halal SMEs should therefore focus on innovation capacity, vertical and horizontal networking and adoption of the latest technologies. The uniqueness of this study focused on the strategic orientation and value of competitive advantage of halal SMEs towards economic sustainability. Additionally, this study was the first to develop hybrid SEM–neural network analysis to apply sensitivity analysis for the evaluation of the contribution of each exogenous predictor towards the endogenous construct.

Suggested Citation

  • Marvello Yang & Norizan Jaafar & Abdullah Al Mamun & Anas A. Salameh & Noorshella Che Nawi, 2022. "Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-28, December.
    • Handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00232-5
    DOI: 10.1186/s13731-022-00232-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-022-00232-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-022-00232-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Elias Carayannis & David Campbell, 2011. "Open Innovation Diplomacy and a 21st Century Fractal Research, Education and Innovation (FREIE) Ecosystem: Building on the Quadruple and Quintuple Helix Innovation Concepts and the “Mode 3” Knowledge ," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 2(3), pages 327-372, September.
    2. Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February.
    3. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    4. Anna Maria Fiori & Ilaria Foroni, 2019. "Reservation Forecasting Models for Hospitality SMEs with a View to Enhance Their Economic Sustainability," Sustainability, MDPI, vol. 11(5), pages 1-24, February.
    5. Popli, Manish & Ladkani, Radha M. & Gaur, Ajai S., 2017. "Business group affiliation and post-acquisition performance: An extended resource-based view," Journal of Business Research, Elsevier, vol. 81(C), pages 21-30.
    6. Lopes, João & Farinha, Luís & Ferreira, João J. & Silveira, Paulo, 2018. "Does regional VRIO model help policy-makers to assess the resources of a region? A stakeholder perception approach," Land Use Policy, Elsevier, vol. 79(C), pages 659-670.
    7. Park, Hyun Jung & Zhang, Yining, 2022. "Technology readiness and technology paradox of unmanned convenience store users," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    8. Erstu Tarko Kassa, 2021. "Socioeconomic determinants of micro and small enterprise growth in North Wollo and Waghimira Zone selected towns," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-14, December.
    9. Youn Kue Na & Sungmin Kang & Hye Yeon Jeong, 2019. "The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    10. Elias G. Carayannis & David F.J. Campbell, 2010. "Triple Helix, Quadruple Helix and Quintuple Helix and How Do Knowledge, Innovation and the Environment Relate To Each Other? : A Proposed Framework for a Trans-disciplinary Analysis of Sustainable Dev," International Journal of Social Ecology and Sustainable Development (IJSESD), IGI Global, vol. 1(1), pages 41-69, January.
    11. Lorenzo Ardito & Rosa Maria Dangelico, 2018. "Firm Environmental Performance under Scrutiny: The Role of Strategic and Organizational Orientations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 426-440, July.
    12. Henry Etzkowitz & Chunyan Zhou, 2006. "Triple Helix twins: innovation and sustainability," Science and Public Policy, Oxford University Press, vol. 33(1), pages 77-83, February.
    13. Samuel Howard Quartey & Olamide Oguntoye, 2021. "Understanding and Promoting Industrial Sustainability in Africa Through the Triple Helix Approach: a Conceptual Model and Research Propositions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1100-1118, September.
    14. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    15. Wang, Qiang & Zhao, Xiande & Voss, Chris, 2016. "Customer orientation and innovation: A comparative study of manufacturing and service firms," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 221-230.
    16. Lu Lin Zhou & James Onuche Ayegba & Emmanuel Onu Ayegba & Peace Maina Ayegba & Zhang Xin Jie, 2021. "Impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-24, December.
    17. Andonova, Veneta & Losada-Otálora, Mauricio, 2020. "Understanding the interplay between brand and innovation orientation: Evidence from emerging multinationals," Journal of Business Research, Elsevier, vol. 119(C), pages 540-552.
    18. Panita Rachapaettayakom & Mongkolchai Wiriyapinit & Nagul Cooharojananone & Suparatana Tanthanongsakkun & Nuttirudee Charoenruk, 2020. "The need for financial knowledge acquisition tools and technology by small business entrepreneurs," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-28, December.
    19. Pilar Fidel & Walesska Schlesinger & Esposito Emilo, 2018. "EFFECTS OF CUSTOMER KNOWLEDGE MANAGEMENT AND CUSTOMER ORIENTATION ON INNOVATION CAPACITY AND MARKETING RESULTS IN SMEs: THE MEDIATING ROLE OF INNOVATION ORIENTATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-26, October.
    20. Chin-Hung Tseng & Kuo-Hsiung Chang & Ho-Wen Chen, 2021. "Strategic Orientation, Environmental Management Systems, and Eco-Innovation: Investigating the Moderating Effects of Absorptive Capacity," Sustainability, MDPI, vol. 13(21), pages 1-14, November.
    21. Parente, Ronaldo C. & Geleilate, José-Mauricio G. & Rong, Ke, 2018. "The Sharing Economy Globalization Phenomenon: A Research Agenda," Journal of International Management, Elsevier, vol. 24(1), pages 52-64.
    22. Elias Carayannis & Ruslan Rakhmatullin, 2014. "The Quadruple/Quintuple Innovation Helixes and Smart Specialisation Strategies for Sustainable and Inclusive Growth in Europe and Beyond," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 212-239, June.
    23. Feng, Taiwen & Wang, Dan & Lawton, Alan & Luo, Ben Nanfeng, 2019. "Customer orientation and firm performance: The joint moderating effects of ethical leadership and competitive intensity," Journal of Business Research, Elsevier, vol. 100(C), pages 111-121.
    24. Kanbiro Orkaido Deyganto, 2022. "The effect of tax incentives practices on the sustainability of micro, small and medium enterprises in Ethiopia during the outbreak of corona virus pandemic," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.
    25. Benedicta Prihatin Dwi Riyanti & Angela Oktavia Suryani & Christine Winstinindah Sandroto & Silverius Y. Soeharso, 2022. "The construct and predictive validity testing of Indonesian entrepreneurial competence inventory-situational judgment test model," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-19, December.
    26. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    27. Bryan Campbell, 2010. "Environment And Sustainable Development," CIRANO Papers 2010n-04speciala, CIRANO.
    28. Songling Yang & Muhammad Ishtiaq & Muhammad Anwar, 2018. "Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy," JRFM, MDPI, vol. 11(3), pages 1-17, June.
    29. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    30. Scott L. Newbert, 2008. "Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 745-768, July.
    31. Thomas C. Powell & Anne Dent‐Micallef, 1997. "Information technology as competitive advantage: the role of human, business, and technology resources," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 375-405, May.
    32. Shampy Kamboj & Zillur Rahman, 2017. "Market orientation, marketing capabilities and sustainable innovation," Management Research Review, Emerald Group Publishing Limited, vol. 40(6), pages 698-724, June.
    33. Kuo, Szu-Yu & Lin, Pei-Chun & Lu, Chin-Shan, 2017. "The effects of dynamic capabilities, service capabilities, competitive advantage, and organizational performance in container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 356-371.
    34. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    35. Pantelis C. Kostis, 2021. "Culture, innovation, and economic development," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Björn Sautter, 2021. "Shaping Digital Ecosystems for Sustainable Production: Assessing the Policy Impact of the 2030 Vision for Industrie 4.0," Sustainability, MDPI, vol. 13(22), pages 1-16, November.
    2. Jaffar Abbas & Saqlain Raza & Mohammad Nurunnabi & Mohd Sobri Minai & Shaher Bano, 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    3. Rifat Kamasak, PhD, 2014. "Another Attempt to look inside the “Black Box†of Performance Creation: A Case Study Approach," International Journal of Business and Social Research, LAR Center Press, vol. 4(7), pages 1-16, July.
    4. Elias G. Carayannis & David F. J. Campbell, 2021. "Democracy of Climate and Climate for Democracy: the Evolution of Quadruple and Quintuple Helix Innovation Systems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 2050-2082, December.
    5. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    6. Peter Björk, 2014. "The DNA of Tourism Service Innovation: A Quadruple Helix Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(1), pages 181-202, March.
    7. Shah, Tushar R., 2022. "Can big data analytics help organisations achieve sustainable competitive advantage? A developmental enquiry," Technology in Society, Elsevier, vol. 68(C).
    8. Yong Kyu Lew & Jeong‐Yang Park, 2021. "The evolution of N‐helix of the regional innovation system: Implications for sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 453-464, March.
    9. Elias G. Carayannis & David F. J. Campbell & Evangelos Grigoroudis, 2022. "Helix Trilogy: the Triple, Quadruple, and Quintuple Innovation Helices from a Theory, Policy, and Practice Set of Perspectives," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2272-2301, September.
    10. Linus Chesoli Wekesa & Jackson Maalu & James Gathungu & Gituro Wainaina, 2023. "Mediating Effect of Competitive Strategy Between Entrepreneur Characteristics and the Performance of Non-timber Forest Product SMEs in Kenya," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4293-4317, December.
    11. Lars Jonsson & Enrico Baraldi & Lars-Eric Larsson & Petter Forsberg & Kristofer Severinsson, 2015. "Targeting Academic Engagement in Open Innovation: Tools, Effects and Challenges for University Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(3), pages 522-550, September.
    12. David Campbell & Elias Carayannis & Scheherazade Rehman, 2015. "Quadruple Helix Structures of Quality of Democracy in Innovation Systems: the USA, OECD Countries, and EU Member Countries in Global Comparison," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(3), pages 467-493, September.
    13. Elias Carayannis & Ruslan Rakhmatullin, 2014. "The Quadruple/Quintuple Innovation Helixes and Smart Specialisation Strategies for Sustainable and Inclusive Growth in Europe and Beyond," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(2), pages 212-239, June.
    14. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    15. Markus Erbach, 2016. "Facilitating Targeted Open Innovation by Applying Pragmatic Identity Matching," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(1), pages 104-125, March.
    16. Ida Grundel & Margareta Dahlström, 2016. "A Quadruple and Quintuple Helix Approach to Regional Innovation Systems in the Transformation to a Forestry-Based Bioeconomy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 963-983, December.
    17. Elias G. Carayannis & Stelios Rozakis & Evangelos Grigoroudis, 2018. "Agri-science to agri-business: the technology transfer dimension," The Journal of Technology Transfer, Springer, vol. 43(4), pages 837-843, August.
    18. M. à ngeles López-Cabarcos & Sérgio Göttling-Oliveira-Monteiro & Paula Vázquez-Rodríguez, 2015. "Organizational Capabilities and Profitability," SAGE Open, , vol. 5(4), pages 21582440156, November.
    19. Chwiłkowska-Kubala, Anna, 2021. "What are the sources of regional airport economic effectiveness? The dynamic capabilities perspective with evidence from Poland," Journal of Air Transport Management, Elsevier, vol. 92(C).
    20. Ashish Varma & Kaushal Bhalotia & Karan Gambhir, 2020. "Innovating for competitive advantage: managerial risk-taking ability counterbalances management controls," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 389-409, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:11:y:2022:i:1:d:10.1186_s13731-022-00232-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.