Dynamic Management Skills as a Critical Moderator in Enhancing International SME Performance through Strategic Business Orientation

Authors: Prof. Nadežda Jankelová

DOI: https://doi.org/10.37082/IJIRMPS.ICTIMESH-24-Dubai.2

Short DOI: https://doi.org/g8znx6

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Abstract: The study examines the relationship between international entrepreneurial orientation (IEO) and international performance (IP) of internationalized small and medium-sized enterprises (SMEs) in the Slovak Republic. Given the scarcity of empirical research on the managerial dimensions influencing this relationship, the study investigates dynamic managerial competencies (DMCs) as a moderating factor in the IEO-IP nexus. The theoretical framework is grounded in the resource-based view (RBV), which posits that firm-specific resources and capabilities are critical sources of competitive advantage. Data were collected via a questionnaire survey administered to 145 internationalized SMEs in the service and industrial sectors. The analysis employed a robust statistical method, Structural Equation Modelling (SEM) through Partial Least Squares (PLS), which is suitable for modeling complex relationships and managing smaller sample sizes. Our findings provide novel insights into the underexplored yet widely debated IEO-IP relationship in SMEs, presenting fresh evidence on enhancing international performance in Slovak SMEs. The results reveal that IEO is directly associated with the IP of SMEs. Moreover, DMCs, as a multidimensional construct, exert a statistically significant moderating effect on the IEO-IP relationship. Specifically, social capital and managerial cognition significantly reinforce the connection between IEO and international performance, while human capital does not exhibit a significant effect. The study's theoretical contribution lies in validating the role of DMC as a complex construct in augmenting international performance in conjunction with IEO. It also identifies the differential effects of the three DMC types in the IEO-IP framework, offering nuanced insights into their moderating roles. The research underscores the importance of strategic business orientation and dynamic capabilities for SMEs operating in the global market. Finally, managerial implications and directions for future research are proposed.

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Paper Id: 6.602

Published On: 2025-01-14

Published In: Special Issue - International Conference on Trends and Innovations in Management, Engineering, Sciences and Humanities (January 2025)

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