Improving the Performance of SMEs in the Food Industry: The Effects of Strategic Learning, Strategic Innovation, and Strategic Agility

Document Type : Research Paper

Authors

1 Department of Management, Faculty of Management and Economics, University of Guilan, Rasht, Iran

2 Department of Management, Ilam University, Ilam. Iran

Abstract

The present study aims to explore how strategic learning influences the performance enhancement of small and medium enterprises, with a focus on the mediating roles of strategic innovation and strategic agility, as well as the moderating role of absorptive capacity. This research is practical in its purpose and employs a descriptive survey method. The study's statistical population consists of small and medium enterprises in Ilam province. For this purpose, the sample size, consisting of 138 individuals, was calculated using G-Power software. SmartPLS 3 software was employed in the data analysis section to test the research model. The research findings showed that strategic learning, strategic agility, and strategic innovation enhanced the performance of small and medium enterprises. Furthermore, strategic innovation and strategic agility have a mediating role in the relationship between strategic learning and the performance of small and medium enterprises. Moreover, according to the results, the moderating role of absorptive capacity in the relationship between strategic learning, strategic agility, and the performance of small and medium enterprises was confirmed. Despite this, the type and amount of absorptive capacity in the studied statistical population is such that it cannot affect the intensity of the relationship between strategic innovation and the performance of small and medium enterprises. Based on the results, strategic learning can be considered a critical factor in achieving the successful performance of small and medium enterprises and its continuation. In addition, rapid changes and environmental dynamics are regarded as the most obvious features of the business environment in this era. Therefore, small and medium enterprises must have the ability to be agile and strategically innovative, as strategic agility and strategic innovation are the best approaches for adapting to environmental changes.

Keywords

Main Subjects


Abourokbah, S. H., Mashat, R. M., & Salam, M. A. (2023). Role of absorptive capacity, digital capability, agility, and resilience in supply chain innovation performance. Sustainability, 15(4), 3636. http://dx.doi.org/10.3390/su15043636
Adomako, S., Amankwah-Amoah, J., Donbesuur, F., Ahsan, M., Danso, A., & Uddin, M. (2022). Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions. International Business Review, 31(6), 102032. https://doi.org/10.1016/j.ibusrev.2022.102032
Akbari, M., & Beigi, S. (2023). The performance of active businesses in an emerging economy: The role of entrepreneurial approach, strategic flexibility, and business model innovation. Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies), 16(3), 769-789. https://doi.org/10.22059/ijms.2022.334082.674830
Akkaya, B., & Apostu, S. A. (2023, June). The moderating role of trust in managers between strategic innovation and firm performance. In 5th International Conference on Economics and Social Sciences (pp. 235-245). Springer Nature. http://dx.doi.org/10.1007/978-3-031-28255-3_18
Akram, M. S., Goraya, M. A. S., Malik, A., & Aljarallah, A. M. (2018). Organizational performance and sustainability: Exploring the roles of IT capabilities and knowledge management capabilities. Sustainability, 10(10), 3816. https://doi.org/10.3390/su10103816
Al-Hawary, S. I. S., & Al-Rasheedy, H. H. (2021). The effect of strategic learning for human resources on dynamic capabilities of airlines companies in Kuwait. International Journal of Business Information Systems, 37(4), 421-441. https://doi.org/10.1504/IJBIS.2021.117000
Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2020). The impact of social capital and collaborative knowledge creation on e-business proactiveness and organizational agility in responding to the COVID-19 crisis. Journal of Innovation & Knowledge, 5(4), 279–288. https://doi.org/10.1016/j.jik.2020.10.002
AlQershi, N. (2021). Strategic thinking, strategic planning, strategic innovation and the performance of SMEs: The mediating role of human capital. Management Science Letters, 11(3), 1003-1012. https://doi.org/10.5267/j.msl.2020.9.042
Al-Romeedy, B. S. (2019). Strategic agility as a competitive advantage in airlines–case study: Egypt air. Journal of the Faculty of Tourism and Hotels-University of Sadat City, 3(1), 1-15. https://doi.org/10.21608/MFTH.2019.45538
AlTaweel, I. R., & Al-Hawary, S. I. (2021). The mediating role of innovation capability on the relationship between strategic agility and organizational performance. Sustainability, 13(14), 7564. https://doi.org/10.3390/su13147564
Appelbaum, S. H., Calla, R., Desautels, D., & Hasan, L. (2017). The challenges of organizational agility (part 1). Industrial and Commercial Training, 49(1), 6-14. https://doi.org/10.1108/ICT‑05‑2016‑0027
Arman, M., & Shafiei, M. (2017). Competitive capabilities in the knowledge-based companies, a model to explain the role of strategic agility and strategic learning. Management Studies in Development and Evolution, 25(83), 25-50. 25(83), 25–50. https://doi.org/10.22054/jmsd.2017.7477
Bai, B., Um, K. H., & Lee, H. (2023). The strategic role of firm agility in the relationship between IT capability and firm performance under the COVID-19 outbreak. Journal of Business & Industrial Marketing, 38(5), 1041-1054. DOI: 10.1108/JBIM-08-2021-0406
Băndoi, A., Jianu, E., Enescu, M., Axinte, G., Tudor, S., & Firoiu, D. (2020). The relationship between development of tourism, quality of life and sustainable performance in EU countries. Sustainability, 12(4), 1628. https://doi.org/10.3390/su12041628
Baranowska-Prokop, E., & Sikora, T. (2023). The impact of organizational learning on Polish SME market performance. International Journal of Management and Economics, 59(2), 137-149. https://doi.org/10.2478/ijme-2023-0003
Barba-Aragón, M. I., & Jiménez-Jiménez, D. (2020). HRM and radical innovation: A dual approach with exploration as a mediator. European Management Journal, 38(5), 791-803. https://doi.org/10.1016/j.emj.2020.03.007
Battour, M., Barahma, M., & Al-Awlaqi, M. (2021). The relationship between HRM strategies and sustainable competitive advantage: Testing the mediating role of strategic agility. Sustainability, 13(9), 5315. https://doi.org/10.3390/su13095315
Beigi, S., Malekakhlagh, E., Nosratpanah, R., & Safari, M. (2023). A framework for firm performance under the influence of knowledge management and dynamic capabilities: Examining the mediating role of sustainable competitive advantage. Iranian Journal of Management Studies, 16(1), 205-227. https://doi.org/10.22059/ijms.2022.327941.674674
Berghman, L., Matthyssens, P., Streukens, S., & Vandenbempt, K. (2013). Deliberate learning mechanisms for stimulating strategic innovation capacity. Long Range Planning, 46(1-2), 39-71. https://doi.org/10.1016/j.lrp.2012.11.003
Bigliardi, B., & Galati, F. (2013). Innovation trends in the food industry: The case of functional foods. Trends in Food Science & Technology, 31(2), 118-129. https://doi.org/10.1016/j.tifs.2013.03.006
Bondzi–Simpson, P. E., & Agomor, K. S. (2021). Financing public universities in Ghana through strategic agility: Lessons from Ghana institute of management and public administration (GIMPA). Global Journal of Flexible Systems Management, 22(1), 1-15. https://doi.org/10.1007/s40171‑020‑00254‑6
Cepel, M., Gavurova, B., Dvorský, J., & Belas, J. (2020). The impact of the COVID-19 crisis on the perception of business risk in the SME segment. Journal of International Studies, 13(3), 248-263. http://dx.doi.org/10.14254/2071-8330.2020/13-3/16
Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2019). Strategic agility, business model innovation, and firm performance: An empirical investigation. IEEE Transactions on Engineering Management, 68(3), 767-784. https://doi.org/10.1109/TEM.2019.2910381
Clauss, T., Kraus, S., Kallinger, F. L., Bican, P. M., Brem, A., & Kailer, N. (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox. Journal of Innovation & Knowledge, 6(4), 203-213. http://dx.doi.org/10.1016/j.jik.2020.07.003
Damanpour, F., & Evan, W. M. (1984). Organizational innovation and performance: the problem of" organizational lag". Administrative science quarterly, 392-409. DOI: 10.2307/2393031
Debellis, F., & Pinelli, M. (2020). Board interlocks in SMEs and the formation of international joint ventures. Piccola Impresa / Small Business, 2(2), 99–118. https://doi.org/10.14596/pisb.356
Doz, Y. L., & Kosonen, M. (2010). Embedding strategic agility: A leadership agenda for accelerating business model renewal. Long Range Planning, 43(2-3), 370-382. . https://doi.org/10.1016/j.lrp.2009.07.006
Drejer, A. (2006). Strategic innovation: A new perspective on strategic management. Handbook of Business Strategy, 7(1), 143-147. https://doi.org/10.1108/10775730610618756
El Chaarani, H., Vrontis, P. D., El Nemar, S., & El Abiad, Z. (2022). The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period. Competitiveness Review: An International Business Journal, 32(3), 282-301. https://doi.org/10.1108/CR-02-2021-0024
Elali, W. (2021). The importance of strategic agility to business survival during corona crisis and beyond. International Journal of Business Ethics and Governance, 1-8. http://dx.doi.org/10.51325/ijbeg.v4i2.64
Farjoun, M. (2002). Towards an organic perspective on strategy. Strategic Management Journal, 23(7), 561–594. https://doi.org/10.1002/smj.239
Gomes, G., Seman, L. O., Berndt, A. C., & Bogoni, N. (2022). The role of entrepreneurial orientation, organizational learning capability and service innovation in organizational performance. Revista de Gestão, 29(1), 39-54. https://doi.org/10.1108/REGE-11-2020-0103
Guiné, R. P., Florença, S. G., Barroca, M. J., & Anjos, O. (2020). The link between the consumer and the innovations in food product development. Foods, 9(9), 1317. https://doi.org/10.3390/foods9091317
Gupta, G., & Bose, I. (2019). Strategic learning for digital market pioneering: Examining the transformation of Wishberry's crowdfunding model. Technological Forecasting and Social Change, 146, 865–876. https://doi.org/10.1016/j.techfore.2018.06.020
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review, 26(2), 106-121. https://doi.org/10.1108/ebr-10-2013-0128
Hamburg, I., & O’Brien, E. (2014). Using strategic learning for achieving growth in SMEs. Journal of information technology and application in education, 3(2), 77-83. https://doi.org/10.14355/jitae.2014.0302.04
Han, C., & Zhang, S. (2021). Multiple strategic orientations and strategic flexibility in product innovation. European Research on Management and Business Economics, 27(1), 100136. https://doi.org/10.1016/j.iedeen.2020.100136
Herlinawati, E., & Machmud, A. (2020). The effect of innovation on increasing business performance of SMEs in Indonesia. WSEAS Transactions on Business and Economics, 17(7), 51-57. https://doi.org/10.37394/23207.2020.17.7
Hussein, S. A., Amanah, A. A., & Kazem, S. A. (2023). Strategic learning and strategic agility: The mediating role of strategic thinking. International Journal of eBusiness and eGovernment Studies, 15(1), 1-25. https://doi.org/10.34109/ijebeg.2023150101
Idris, W. M. S., & Al-Rubaie, M. T. K. (2013). Examining the impact of strategic learning on strategic agility. Journal of Management and Strategy, 4(2), 70. https://doi.org/10.5430/jms.v4n2p70
Islam, A., & Wahab, S. A. (2021). The intervention of strategic innovation practices in between regulations and sustainable business growth: A holistic perspective for Malaysian SMEs. World Journal of Entrepreneurship, Management and Sustainable Development, 17(3), 396-421. https://doi.org/10.1108/WJEMSD-04-2020-0035
Islam, T., & Munir, S. (2022). How important strategic learning capabilities are during COVID-19? A model for innovation ambidexterity. Journal of Workplace Learning, 35(1), 35-56. https://doi.org/10.1108/JWL-11-2021-0144
Kharabsheh, R., Ensour, W., & Bogolybov, P. (2017). Learning orientation, market orientation and organizational performance: The mediating effect of absorptive capacity. Business and Economic Research, 7(1), 114–127. https://doi.org/10.5296/ber.v7i1.10294
Keshab, D., & Joseph, K. J. (2018). On learning, innovation and competence building in India’s SMEs: The challenges ahead. In A. Arroio & M. Scerri (Eds.), The Promise of Small and Medium Enterprises (pp. 121-160). Routledge India. https://doi.org/10.4324/9781315734163
Koçyiğit, Y., & Akkaya, B. (2020). The role of organizational flexibility in organizational agility: A research on SMEs. Business Management and Strategy, 11(1), 110-123. https://doi.org/10.5296/bms.v11i1.16867
Kohtamäki, M., Heimonen, J., Sjödin, D., & Heikkilä, V. (2020). Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory. Journal of Business Research, 118, 12-25. https://doi.org/10.1016/j.jbusres.2020.06.029
Kostopoulos, K., Papalexandris, A., Papachroni, M., & Ioannou, G. (2011). Absorptive capacity, innovation, and financial performance. Journal of Business Research, 64(12), 1335-1343. https://doi.org/10.1016/j.jbusres.2010.12.005
Kuwada, K. (1998). Strategic learning: The continuous side of discontinuous strategic change. Organization Science, 9(6), 719-736. https://doi.org/10.1287/orsc.9.6.719
Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31(4), 833-863. https://doi.org/10.5465/amr.2006.22527456
Lin, C. H., Peng, C. H., & Kao, D. T. (2008). The innovativeness effect of market orientation and learning orientation on business performance. International Journal of Manpower, 29(8), 752-772. https://doi.org/10.1108/01437720810919332
Liu, H., Ke, W., Wei, K. K., & Hua, Z. (2013). The impact of IT capabilities on firm performance: The mediating roles of absorptive capacity and supply chain agility. Decision Support Systems, 54(3), 1452-1462. https://doi.org/10.1016/j.dss.2012.12.016
Menrad, K. (2004). Innovations in the food industry in Germany. Research policy, 33(6-7), 845-878. https://doi.org/10.1016/j.respol.2004.01.012
Moon, H., & Ruona, W. (2015). Towards a deeper understanding of strategic learning. Leadership & Organization Development Journal, 36(6), 657-674. https://doi.org/10.1108/LODJ-10-2013-0139
Moon, H., Ruona, W., & Valentine, T. (2017). Organizational strategic learning capability: exploring the dimensions. European Journal of Training and Development, 41(3), 222-240. https://doi.org/10.1108/EJTD-08-2016-0061
Mueller, B. A., Titus Jr, V. K., Covin, J. G., & Slevin, D. P. (2012). Pioneering orientation and firm growth: Knowing when and to what degree pioneering makes sense. Journal of Management, 38(5), 1517-1549. https://doi.org/10.1177/0149206310380249
Müller, J. M., Buliga, O., & Voigt, K. I. (2021). The role of absorptive capacity and innovation strategy in the design of industry 4.0 business models: A comparison between SMEs and large enterprises. European Management Journal, 39(3), 333-343. https://doi.org/10.1016/j.emj.2020.01.002
Oktavio, A., Kaihatu, T. S., & Kartika, E. W. (2019). Learning orientation, entrepreneurial orientation, innovation and their impacts on new hotel performance: Evidence from Surabaya. Jurnal Aplikasi Manajemen, 17(1), 8–19. https://doi.org/10.21776/ub.jam.2019.017.01.02
Ozorhon, B., Oral, K., & Demirkesen, S. (2016). Investigating the components of innovation in construction projects. Journal of Management in Engineering, 32(3), 04015052. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000419
Pietersen, W. (2010). Strategic learning: How to be smarter than your competition and turn key insights into competitive advantage (1st ed.). John Wiley & Sons.
Rafiki, A., Nasution, M. D. T. P., Rossanty, Y., & Sari, P. B. (2021). Organizational learning, entrepreneurial orientation and personal values towards SMEs’ growth in Indonesia. Journal of Science and Technology Policy Management, 14(1), 181–212. https://doi.org/10.1108/JSTPM-03-2020-0059
Ramos, A., & Ellitan, L. (2023). The Role of Organizational Learning and Culture in Building Organizational Competitiveness. International Journal of Trends in Scientific Research and Development (IJTSRD) Volume, 7. . https://doi.org/10.17605/OSF.IO/3J8G9
Refah Kahriz, A., Mohammadzadeh, Y., Mohseni Zonouzi, S. J., Hashemi Berenjabadi, N., & Ghasemzadeh, N. (2019). The effect of competitiveness on economic performance in selected developing and developed countries. Quarterly Journal of the Macro and Strategic Policies, 7(25), 86-107. https://doi.org/10.32598/JMSP.7.1.86
Sadeghi T., Heidari S., Vanaki Z., Khosroangam M., & Rodini A. (2014). Organizational learning capabilities of nurses. Management Journal. 2(8), 56-63. https://doi.org/10.32598/JMSP.2.4.56
Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organization. Broadway Business.
Shlaka, T. K., & AlZaidi, R. K. (2022). The effect of strategic learning in enhancing strategic flexibility an analytical study at the ministry of health center. World Bulletin of Management and Law, 17, 57-61. https://doi.org/10.17605/OSF.IO/3J8G9
Singh, R., Chandrashekar, D., Hillemane, B. S. M., Sukumar, A., & Jafari-Sadeghi, V. (2022). Network cooperation and economic performance of SMEs: Direct and mediating impacts of innovation and internationalisation. Journal of Business Research, 148, 116-130. https://doi.org/10.1016/j.jbusres.2022.04.032
Siren, C. A. (2012). Unmasking the capability of strategic learning: A validation study. The Learning Organization, 19(6), 497-517. https://doi.org/10.1108/09696471211266983
Sirén, C., & Kohtamäki, M. (2016). Stretching strategic learning to the limit: The interaction between strategic planning and learning. Journal of Business Research, 69(2), 653-663. https://doi.org/10.1016/j.jbusres.2015.08.035
Sirén, C. A. & Kohtamäki, M. (2017). Strategic learning for agile maneuvering in high technology SMEs. In K. Todorov & D. Smallbone (Ed.), Handbook of Research on Strategic Management in Small and Medium Enterprises (pp.55-76). IGI Global Scientific Publishing. http://dx.doi.org/10.4018/978-1-4666-5962-9.ch004
Stelmaszczyk, M. (2020). How absorptive capacity and organisational learning orientation interact to enable innovation capability? An empirical examination. Entrepreneurial Business and Economics Review, 8(1), 7-32. https://doi.org/10.15678/EBER.2020.080101
Stock, G. N., Greis, N. P., & Fischer, W. A. (2001). Absorptive capacity and new product development. The Journal of High Technology Management Research, 12(1), 77–91. https://doi.org/10.1016/S1047-8310(00)00040-7
Subrahmanya, M. H. B., & Loganathan, M. (2021). Global value chains of MNCs and Indian SMEs: Promoting linkages. Economic and Political Weekly, 56(32), 86-94. https://doi.org/10.2307/26967132
Thatrak, D. (2021). The effect of strategic innovation on company performance: A case study of the industrial estate of Thailand. The Journal of Asian Finance, Economics and Business, 8(8), 37-45. doi.org/10.13106/jafeb.2021.vol8.no8.0037
Thoumrungroje, A., & Racela, O. C. (2022). Innovation and performance implications of customer‑orientation across different business strategy types. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 178. https://doi.org/10.3390/joitmc8040178
Troise, C., Corvello, V., Ghobadian, A., & O'Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227. https://doi.org/10.1016/j.techfore.2021.121227
Varadarajan, R. (2018). Innovation, innovation strategy, and strategic innovation. In R. Varadarajan & S. Jayachandran (Eds.), Innovation and strategy (pp. 143-166). Emerald Publishing Limited. https://doi.org/10.1108/S1548-643520180000015007
Vera, D., Nemanich, L., Vélez-Castrillón, S., & Werner, S. (2016). Knowledge-based and contextual factors associated with R&D teams’ improvisation capability. Journal of Management, 42(7), 1874-1903. https://doi.org/10.1177/0149206314530168
Walker, R. M. (2004). Innovation and organisational performance: Evidence and a research agenda. Advanced Institute of Management Research Paper, (002). https://doi.org/10.5465/AMBPP.2005.18783338
Wetzels, M., Odekerken-Schröder, G., & van Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177–195. https://doi.org/10.2307/20650284
Wu, F., Mahajan, V., & Balasubramanian, S. (2003). An analysis of e-business adoption and its impact on business performance. Journal of the Academy of Marketing science, 31(4), 425-447. https://doi.org/10.1177/0092070303255379
Yaqoob, N., Ali, S. A., Kannaiah, D., Khan, N., Shabbir, M. S., Bilal, K., & Tabash, M. I. (2022). The effects of agriculture productivity, land intensification, on sustainable economic growth: a panel analysis from Bangladesh, India, and Pakistan Economies. Environmental Science and Pollution Research, 1-9. https://doi.org/10.1007/s11356-021-18471-6
Yoshikuni, A. C., & Albertin, A. L. (2020). Leveraging firm performance through information technology strategic alignment and knowledge management strategy: an empirical study of IT-Business Value. International Journal of Research-GRANTHAALAYAH, 8(10), 304-318. https://doi.org/10.29121/granthaalayah.v8.i10.2020.2088
Yousuf, A., Lorestani, V. Z., Oláh, J., & Felföldi, J. (2021). Does uncertainty moderate the relationship between strategic flexibility and companies’ performance? Evidence from small and medium pharmaceutical companies in Iran. Sustainability, 13(16), 9157. https://doi.org/10.3390/su13169157
Yilmaz, C., Alpkan, L., & Ergun, E. (2005). Cultural determinants of customer-and learning-oriented value systems and their joint effects on firm performance. Journal of business research, 58(10), 1340-1352. DOI;10.1016/j.jbusres.2004.06.002
Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185–203. https://doi.org/10.5465/amr.2002.6587995