A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain

Управление знаниями – это деятельность, в ходе которой знания эффективно накапливаются, распространяются и применяются, что приводит к повышению продуктивности и эффективности работы организации. Основная цель данного исследования – проанализировать влияние процессов и возможностей управления знаниями на эффективность малых и средних предприятий (МСП) в Саудовской Аравии. Возможности управления знаниями включают персонал, информационные технологии (ИТ), организационную структуру и организационную культуру, которые в данном исследовании характеризуются Т-образными компетенциями, ИТ-поддержкой, уровнем централизации и обучением. Другим аспектом являются процессы управления знаниями, включающие доступ к знаниям, их создание, внедрение, представление, стимулирование, использование, оценку и трансфер. Эффективность управления знаниями измеряется посредством двух факторов, к числу которых относятся финансовая эффективность организации и удовлетворенность клиентов. Исследование основано на обзоре литературы по управлению знаниями, включая процессы, возможности и эффективность. На этой основе разработана модель исследования и выдвинуты гипотезы. Данные получены путем опроса, в котором приняли участие 126 менеджеров, работающих в МСП разных отраслей в Саудовской Аравии. С помощью ряда статистических тестов исследование показало, что возможности управления знаниями, ИТ-поддержка, обучение, децентрализация и персонал предприятия вносят значимый вклад в успех практики и процессов управления знаниями, тем самым подтверждая теоретическую модель. Исследование также показало, что процессы управления знаниями, включая доступ к знаниям, их создание, оценку, трансфер, использование, внедрение, представление и стимулирование, позитивно связаны с эффективностью МСП в Саудовской Аравии.

Participation in global value chains (GVCs) can be a pathway for economic development. It is associated with growing productivity, exporting more sophisticated products and a less concentrated export basket (Kowalski et al., 2015). However, it is often argued that these benefits accrue mainly to larger firms and/or multinationals, leaving small and medium sized enterprises (SMEs), which tend to employ the largest share of workers, struggling to benefit from the opportunities offered by the evolving GVC landscape. This paper identifies how SMEs in ASEAN economies participate in GVCs by combining firm level data with the Trade in Value Added (TiVA) database. SMEs in the region might face more constraints than large firms in sourcing competitive inputs, limiting their ability to benefit from GVCs, as indicated by the lower share of foreign value added in their exports. That said, SMEs also tend to export intermediate goods to GVCs either directly, or, importantly, indirectly, through sales to larger domestic or multinational firms which then export. Policies seeking to integrate SMEs into GVCs could aim to address importing constraints through continued unilateral or regional liberalisation or sustained support for trade facilitation and connectivity. At the same time programmes aimed at promoting domestic and international production linkages should allow SMEs to better identify new opportunities and exploit their comparative advantage in the production of intermediate goods and services and integrate, directly or indirectly, into regional and global value chains.

Purpose The purpose of this paper is to establish how small- and medium-sized enterprises (SMEs) in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries can sustain or improve their competitive advantage by integrating specific resources and capabilities. The paper seeks to offer an alternative framework “resource capability-based view (RCBV)” that provides a strategic marketing direction for SMEs regarding how innovative marketing practices and dynamic marketing capabilities integrate to create sustainable market advantage. Design/methodology/approach This current paper employed a quantitative survey design with a positivist methodological research paradigm. The paper used a multi-stage stratified and simple random sampling technique to collect data from 591 manufacturing SMEs in Ghana. SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries were sampled for the study. A structural equation model was employed to test the study hypotheses to arrive at the findings. Findings The study found that product design and packaging innovations, promotion innovations, retail innovations and pricing innovations provide sustainable market advantage for water, beverage, detergent and metal fabrication SMEs. The paper also found that new product designs and packages are the major drivers of sustainable market advantage followed by innovative retail outlets. The paper further originated that integrating marketing competence (marketing resources and marketing capabilities) and innovative marketing activities provides a marginal improvement in competitive advantage. Physical resources may result in market advantage but integrating physical resources with dynamic marketing capabilities provides sufficient competitive sustainability in a competitive market. Practical implications SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries should prioritise their key marketing resources and capabilities in product designs, promotion, pricing and retailing innovations in order to sustain market advantage. Old products should not be faded from the market but rather SME managers should employ innovative retail strategies, such as eco-friendly advertising, product re-branding and digital platforms (social network sites and websites), which are important to sustaining market performance. Government must develop targeted policies to bridge the information gap between SMEs and research institutions such as universities through regular subsidised entrepreneurial training and creation of semi-annual industry-academic fairs. The main theoretical contribution of this current paper is the development of “RCBV” as a framework which shows how SMEs can integrate specific resources and capabilities to achieve sustainable market advantage. This framework offers an integrative view of conventional resource-based view and dynamic capability theory (DCT) which are independently examined in the literature. Originality/value This current study has proposed an integrated and elaborative approach to the conventional resource-based view and DCT which does not provide a composite understanding in the literature. SMEs may lack the needed resources and capabilities to introduce new products or extant product lines but this paper has demonstrated that how SME can sustain market advantage of existing product(s) by synchronously using specific marketing resources and capabilities. The proposed framework offers a guide for SMEs to integrate their physical resources and capabilities to sustain their market advantage.

Micro, Small, and Medium Enterprises (MSMEs) are a vital sector proven to be resilient during economic crises, but now face significant challenges in the form of digital disruption and global competition. This study aims to analyze MSME development strategies in facing the digital economy era through the Dynamic Capabilities and Global Value Chain Enhancement approaches. The research method used is descriptive qualitative with a case study approach, utilizing observational data and a review of related literature. The research results show that to survive, MSMEs must possess dynamic capabilities that include adaptability, the ability to absorb new technologies, and innovative capabilities. Furthermore, MSMEs need to upgrade in the global value chain through three phases: improving technology-based production processes (process improvement), improving product concepts and philosophies (product improvement), and shifting functions to become active brand owners in digital marketing (functional improvement). In conclusion, the integration of e-commerce technology mastery, product innovation, and digital ecosystem support is crucial for MSMEs to increase competitiveness and national income.

Small and medium-sized enterprises (SMEs) represent the backbone of Malaysia’s economic development; however, their sustained competitiveness is increasingly challenged by the disruptive forces of the Fourth Industrial Revolution (IR4.0). While prior studies have primarily examined IR4.0 adoption in manufacturing contexts, limited attention has been accorded to the service sector, particularly Information and Communication Technology (ICT) SMEs. Anchored in the Dynamic Capability View (DCV), this conceptual study proposes a theoretical framework comprising four internal capability dimensions which are technological capability, digital organizational culture, organizational readiness, and financial capability with organizational sustainability as the dependent variable, mediated by IR4.0 adoption. Theoretically, this study contributes to extending DCV by integrating IR4.0 adoption as a mediating mechanism that translates internal dynamic capabilities into sustainable organizational performance. Empirically, the framework provides a structured foundation for future quantitative investigation using methods such as Structural Equation Modeling (SEM-PLS) to validate the relationships among dynamic capabilities, IR4.0 adoption, and sustainability. From a policy and managerial standpoint, the study offers actionable insights for SME stakeholders, emphasizing the strategic importance of digital capability-building and readiness enhancement under Malaysia’s national initiatives such as Industry4WRD and NIMP 2030. Collectively, this paper advances theoretical understanding and practical approaches for accelerating digital transformation and sustainability among ICT service SMEs in Malaysia.

This study explores how organizational transformation can enhance the agility of Micro, Small, and Medium Enterprises (MSMEs) in West Nusa Tenggara (NTB), Indonesia, by integrating Change Management and Dynamic Capabilities approaches. Facing ongoing disruptions and global uncertainty, MSMEs in NTB struggle with limited financing, outdated technologies, and low digital adoption. Organizational agility is essential for responding quickly to market and technological shifts. Using an explanatory quantitative method, data were gathered from 310 MSME actors via a Likert-scale questionnaire and analyzed with SEM-PLS. The results show that change management significantly impacts agility (β = 0.412) and dynamic capabilities (β = 0.537). Dynamic capabilities also strongly influence agility (β = 0.384) and mediate the relationship between change management and agility. These findings highlight that effective change management strengthens the ability to adapt to external challenges. Practically, the study underscores the importance of internal transformation driven by strategic vision, dynamic resource management, and inclusive decision-making. Theoretically, it offers a new model for MSME resilience in regions facing digital divides. The integration of Change Management and Dynamic Capabilities proves vital for cultivating an agile, adaptive, and competitive MSME landscape in the era of digital transformation. Keywords : Change Management 1; Dynamic Capabilities 2; Organizational Agility 3; MSME Transformation 4; Business Adaptability 5

Purpose Artificial intelligence (AI) technologies have widely penetrated the business-related activities affecting the dynamics of business environments, especially in high-tech small and medium-sized enterprises (SMEs). This study aims to assess the mediating role of dynamic capabilities (DCs) in the relationship between AI adaptation (AIA) and opportunity exploitation (OE) within the context of the entrepreneurial ecosystem in Oman. Design/methodology/approach This paper used a quantitative research design online-based survey, which was distributed to entrepreneurs and managers of high-tech SMEs. Empirical data were collected through snowball sampling and yielded a considerable number of responses from 164 SMEs based in Oman. Analysis of the data collected was done with the use of Partial Least Squares Structural Equation Modeling, which is very effective in predictive modeling that entails complex dynamics. Findings It was found that DCs have a mediating effect, whereby the impact of AIA on OE is positive and significant, but this is mediated by DCs. These results highlight that even though AI influences OE through the DCs, the impact is not maximally strong, and other factors can also be critical in determining the OE. Research limitations/implications This study contributes to existing literature by providing empirical evidence on the interplay between AIA, DCs and OE. This study offers valuable insights for policymakers, entrepreneurs and managers aiming to enhance the competitiveness and innovation capacity of SMEs in the rapidly evolving technological landscape. Originality/value Despite the general awareness of AIA and OE among SMEs, little is known about the potential moderating effect of DC between AIA and OE in the context of high-tech SMEs in Oman.

The present study in the context of circular tourism assesses the determinants of intention and behavior of 256 small and medium-sized enterprises (SMEs) using the partial least squares structural equation modeling (PLS-SEM). Our analysis shows that attitude, subjective norms, and perceived behavioral control of decision-makers positively affect SMEs’ intention to adopt the circular economy (CE). Furthermore, SMEs’ intention, perceived behavioral control, and dynamic capabilities positively, whereas barriers negatively, affect SMEs’ behavior toward CE. The present study explicates that tourism SMEs though have positive intentions toward CE, yet most of them seem to be failing in adopting CE. This intention-behavior gap is occurring due to various contextual factors. Our analysis reveals that if dynamic capabilities are employed by tourism SMEs, then they might succeed in adopting CE, which would consequently improve not only their financial and environmental performance but also their reputation and relationship with stakeholders. The present study suggests some measures for circular tourism.

PurposeThe purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera.Design/methodology/approachThis study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested.FindingsIt is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA.Originality/valueBy using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.

Purpose The purpose of this study is to investigate the mechanisms of how employees’ innovative work behavior (EIWB) can influence small and medium enterprise (SME) performance through the mediation effects of dynamic capabilities (DCs) and entrepreneurial orientation (EO). Design/methodology/approach Online survey data was collected from 319 Vietnamese Information and Communications Technology (ICT) SMEs and analyzed using structural equation modeling (SEM) and asymmetric fuzzy set qualitative comparative analysis (fsQCA) techniques. Findings The SEM results indicate that EIWB does not directly influence firm performance; instead, it improves performance indirectly through the sequential mediation of DCs and EO. FsQCA results corroborate these findings, emphasizing the need to integrate EIWB with the components of DCs and EO for enhanced performance. Furthermore, both SEM and fsQCA reveal that DCs significantly affect performance, whether viewed as an overall construct or through the synergistic effects of their dimensions. Meanwhile, EO exerts a stronger performance influence when considered as an overall construct or in combination with specific DC dimensions. Originality/value To the best of the authors’ knowledge, this study is among the first to empirically investigate the direct and indirect effects of EIWB on firm performance through DCs and EO, considering them both in aggregate and as individual dimensions. The integration of fsQCA addresses the limitations of aggregate approaches by evaluating the distinct effects of individual components of DCs and EO on the innovation–firm performance process. This approach uncovers nuanced pathways enabling firms, particularly SMEs, to optimize limited resources and prioritize the most impactful dimensions to enhance performance.

This study explored circular economy (CE) performance in small‐ and medium‐sized enterprises (SMEs) in the tourism sector. The study's theoretical framework comprised value–belief–norm theory, institutional theory, upper echelon theory (UET), and the dynamic capabilities (DCs) approach. Empirical data from 286 Indian SMEs were analyzed using partial least squares structural equation modeling. The results indicated that personal norms, coercive pressures (CP), mimetic pressures (MP), and top management commitment toward the environment influenced CE performance through DCs. However, normative pressures (NP) did not significantly influence CE performance. DCs were a catalyst enabling individual beliefs, organizational factors, and external pressures to push SMEs toward a CE. Nevertheless, possibly due to insufficient resources, SMEs were reluctant in improving their CE performance. Policymakers and SME owners should therefore develop DCs in their organizations to achieve CE performance through appropriate resource assessment and design.

Industry 4.0 exerts great pressure on the organization today to innovate its business model in order to stay competitive. This study examines the positive and indirect effect of human resource management, organizational culture, knowledge management capabilities on organizational performance, with the mediating effect of organizational innovation capability among small and medium-sized enterprise (SME) in biomass industry in Malaysia. In addition, this study integrates resource-based view (RBV) and dynamic capabilities theories to investigate how the organization utilize its resources and capabilities to enhance organizational performance. Data were collected using survey questionnaire from biomass SMEs located in Malaysia. Structural equation modelling (Smart PLS 3.0) was used to test and analyze the data. The findings reveal that knowledge management capability and organizational culture exert a positive influence on organizational innovation capabilities. Similarly, organizational innovation capabilities also found to positively affect organizational performance.

Purpose Indonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs. Design/methodology/approach This research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme. Findings The findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance. Originality/value The novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development; those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.

Participation in the global value chain is crucial for integrating small and medium enterprises (SMEs) into the global economy. However, participation alone does not guarantee success. Other factors may catalyze true internationalization. The digital economy and advancements in information and communication technologies have enabled SMEs to remain competitive. By leveraging digital technologies like cross‐border e‐commerce (CBEC), SMEs can overcome stagnation at the lower end of the value chain and enhance international market performance. Compared with traditional entry modes, CBEC offers high control and low costs, making it an effective tool for overcoming barriers to internationalization. To investigate how CBEC aids SMEs in ascending global value chains, we developed hypotheses based on organizational learning theory and tested them on a panel dataset of 781 SMEs. Regression analysis results indicate that engaging in CBEC significantly improves an SME's position in the global value chain. We also identified two mediating factors: the firm's entrepreneurial orientation and its ability to reconfigure value chains. These findings underscore the role of CBEC in enhancing the global value of SMEs, offering valuable insights for academics and SME managers alike.

This research attempts to investigate the degree of implementation of knowledge management (KM) processes in the small and medium enterprises (SMEs). The literature suggested that there are three general KM processes: construction, embodiment, and deployment. The processes are examined in detail which included the contributions of the KM process to enterprise performance. The data collected from 70 owners/managers of SMEs indicate that all the three processes are moderately implemented. However, the SMEs view KM processes as somewhat important in contributing towards better enterprise performance. The findings can be used as a guideline for SMEs to undergo a self-check and to help them rethink and reposition themselves in light of the findings. It helps SMEs to frame their KM activities to enable the creation, communication, and application of knowledge, which should allow them to drive the capability of creating and retaining a greater value onto their core business competencies.