Business Environment: Designing and Explaining the New Environmental Hostility Model in Small and Medium Enterprises
الموضوعات :Bijan Rezaei 1 , Sohrab Delangizan 2 , Atieh Khodaei 3
1 - Department of Management and Entrepreneurship, Faculty of Social Sciences, Razi University, Kermanshah, Iran
2 - Department of Economic, Faculty of Social Sciences, Razi University, Kermanshah, Iran
3 - Department of Management and Entrepreneurship, Faculty of Social Sciences, Razi University, Kermanshah, Iran
الکلمات المفتاحية: Environmental Hostility Model, Environmental Hostility, Environmental Turbulence, small and medium enterprises,
ملخص المقالة :
This study aims to explain and elaborate a new model for the business environmental hostility in small and medium enterprises in the science and technology park in Kermanshah (Iran). The research method is a mixed method. Content analysis was used in the qualitative part, and a confirmatory factor analysis was used in the quantitative section. In the qualitative section for the environmental hostility dimension of the environmental turbulence, two components of competitive turbulence and regulatory turbulence, as well as seven sub-components were identified and validated. As a consequence, the conceptual model was extracted. This study proposed a conceptual model of business environmental hostility and the researcher-made questionnaire of environmental hostility confirmed with high validity and reliability. The model was verified based on the small and medium-sized enterprises in Kermanshah (Iran), and it is suggested that this new environmental hostility model can be used in practice to improve managing the small and medium-sized enterprises.
Abbas, M. W., & ul Hassan, M. (2017). Moderating Impact of Environmental Turbulence on Relationship between Business Innovation and Business Performance. Pakistan Journal of Commerce & Social Sciences, 11(2), 576–596. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=125124846&site=ehost-live
Adesi, M., Róisín Murphy, & Dermot Kehily. (2019). The strategy process of irish quantity surveying firms operating within a turbulent business environment. Association of Researchers in Construction Management, ARCOM 2019 - Proceedings of the 35th Annual Conference, September, 791–799.
AL- Nuiami, M., Subhi Idris, W. M., Moh’d AL-Ferokh, F. A., & Moh’d Abu Joma, M. H. (2014). An Empirical Study of the Moderator Effect of Entrepreneurial Orientation on the Relationship between Environmental Turbulence and Innovation Performance in Five-star Hotels in Jordan. International Journal of Business Administration, 5(2), 111–125. https://doi.org/10.5430/ijba.v5n2p111
Alavi, S. (2016). The influence of workforce agility on external manufacturing flexibility of Iranian SMEs. International Journal of Technological Learning, Innovation and Development, 8(1), 111–127.
Aldrich, H. E. (1979). 1979 Organizations and environments. Englewood Cliffs, NJ: Prentice-Hall.
Andersen, P. H., & Strandskov, J. (2008). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, by Clayton M. Christensen. Boston: Harvard Business School Press, 1997. * Leading the Revolution, by Gary Hamel. Boston: Harvard Business School Press, 2000. * Blue Ocean Strategy: . Academy of Management Review, 33(3), 790–794. https://doi.org/10.5465/amr.2008.32465791
Andotra, N., & Gupta, R. (2016). Impact of environmental turbulence on market orientation–business performance relationship in SSIs. Global Business Review, 17(4), 806–820. https://doi.org/10.1177/0972150916645679
Auh, S., & Menguc, B. (2005). Balancing exploration and exploitation: The moderating role of competitive intensity. Journal of Business Research, 58(12), 1652–1661. https://doi.org/10.1016/j.jbusres.2004.11.007
Azar, A., Sadeghi, A., & Kordonaij, A. (2012). Prioritizing the Factors Affecting the Success of Small and Medium Businesses Fuzzy Network Analysis. Journal of Entrepreneurship Development, 5(2), 165–184.
Balboni, B., Bortoluzzi, G., Tivan, M., Tracogna, A., & Venier, F. (2014). The Growth Drivers of Start-up Firms and Business Modelling&58; A First Step toward a Desirable Convergence. Management, 9(2), 131–154.
Bowyer, D., & Chapman, R. L. (2014). Does privatisation drive innovation? Business model innovation through stakeholder viewpoints: The case of Sydney Airport 10 years post-privatisation. Journal of Management and Organization, 20(3), 365–386. https://doi.org/10.1017/jmo.2014.16
Chung, T. S., & Low, A. (2017). The impact of investor impatience and environmental turbulence on myopic marketing management and stock performance. International Journal of Research in Marketing, 34(3), 660–677. https://doi.org/10.1016/j.ijresmar.2017.01.004
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75–87.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Creswell, J. W., & Plano Clark, V. L. (2011). The nature of mixed methods research. Designing and Conducting Mixed Method Research. 2nd Ed. London: Sage Publications, 1–18.
Danaeifard, H., Alvani, S. M., & Azar, A. (2004). Quantitative research methodology in management: a comprehensive approach. First Printing, Publishing Saffar, Tehran.
Daultani, Y., Goswami, M., Vaidya, O. S., & Kumar, S. (2017). Inclusive risk modeling for manufacturing firms: a Bayesian network approach. Journal of Intelligent Manufacturing, 1–15. https://doi.org/10.1007/s10845-017-1374-7
Davari, A., & Rezazadeh, A. (2013). Structural equation modeling with PLS software. Tehran: Jahad-Daneshgahi Publications Organization.
Davis, D., Morris, M., & Allen, J. (1991). Perceived environmental turbulence and its effect on selected entrepreneurship, marketing, and organizational characteristics in industrial firms. Journal of the Academy of Marketing Science, 19(1), 43–51.
Dehkordi, G., Rezvani, S., & Behravan, N. (2012). Blue Ocean Strategy: A Study Over A Strategy Which Help The Firm To Survive From Competitive Environment. International Journal of Academic Research in Business and Social Sciences, 2(6), 477–484. http://www.doaj.org/doaj?func=fulltext&aId=1144785
Derini, M. V., Aghajani Afroozi, A. A., Taban, M., & Mohamadi saleh, M. (2015). Modeling of internal factors affecting the performance of small and medium enterprises. Industrial Management Studies, 36(13), 61–94.
Dess, G. G., & Beard, D. W. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 52–73.
Devins, D. (2009). Enterprise in deprived areas: What role for start-ups? International Journal of Entrepreneurship and Small Business, 8(4), 486–498. https://doi.org/10.1504/IJESB.2009.025694
Dobrin, C., & Cioca, M. (2014). Management Of Agility Process For Surviving In The Competitive Business Environment. Balkan Region Conference on Engineering and Business Education, 1(1), 497–500. https://doi.org/10.2478/cplbu-2014-0084
Ebrahimi, P., & Mirbargkar, S. M. (2017). Green entrepreneurship and green innovation for SME development in market turbulence. Eurasian Business Review, 7(2), 203–228. https://doi.org/10.1007/s40821-017-0073-9
Eghbal Majd, M., Safari, A., & Shaemi Barzoki, A. (2018). The Effect of Strategic Entrepreneurship on Organizational Performance: Role of Dynamic Capabilities of the Organization and Turbulent Business Environment. Journal of Entrepreneurship Development, 11(1), 1–19. https://doi.org/10.22059/jed.2018.251707.652480
Fesharaki, F. (2019). Entrepreneurial Passion, Self-efficacy, and Spiritual Intelligence among Iranian SME Owner–Managers. Psychological Studies, 64(4), 429–435. https://doi.org/10.1007/s12646-019-00507-0
Frank, H., Güttel, W., & Kessler, A. (2017). Environmental dynamism, hostility, and dynamic capabilities in medium-sized enterprises. International Journal of Entrepreneurship and Innovation, 18(3), 185–194. https://doi.org/10.1177/1465750317723219
Giesen, E., Riddleberger, E., Christner, R., & Bell, R. (2010). When and how to innovate your business model. Strategy & Leadership, 38(4), 17–26.
Głodowska, A. (2017). Business environment and economic growth in the European Union countries: What can be explained for the convergence? Entrepreneurial Business and Economics Review, 5(4), 189–204. https://doi.org/10.15678/EBER.2017.050409
Godleski, S., Lohse, B., & Krall, J. S. (2019). Satter Eating Competence Inventory Subscale Restructure After Confirmatory Factor Analysis. Journal of Nutrition Education and Behavior, 51(8), 1003–1010. https://doi.org/10.1016/j.jneb.2019.05.287
Green, K. M., Covin, J. G., & Slevin, D. P. (2008). Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure–style fit. Journal of Business Venturing, 23(3), 356–383.
Gsodam, P., Rauter, R., & Baumgartner, R. J. (2015). The renewable energy debate: how Austrian electric utilities are changing their business models. Energy, Sustainability and Society, 5(1). https://doi.org/10.1186/s13705-015-0056-6
Harwood, T. G., & Garry, T. (2003). An overview of content analysis. The Marketing Review, 3(4), 479–498.
Hudáková, M., & Masár, M. (2018). The assessment of key business risks for SMEs in Slovakia and their comparison with other EU countries. Entrepreneurial Business and Economics Review, 6(4), 145–160. https://doi.org/10.15678/EBER.2018.060408
Ilyas, M. A., Le Loarne, S., & Rizvi, W. H. (2019). Entrepreneurial cognition process within a hostile business environment: A research study of high, medium and low performing entrepreneurs of Pakistan. IBA Business Review, 14(2).
Javidi, M., & Amini, M. (2017). DESIGN AND DEVELOPMENT OF INTERACTIVE PATTERN OF ENVIRONMENTAL CHANGES VIA STRATEGIC CONTROL BASED ON LORANGE MODEL OF STRATEGIC CONTROL. Scientific Journal Management System, 22(63), 133–158. http://smr.journals.iau.ir/article_530379.html
Jogaratnam, G. (2002). Entrepreneurial Orientation and Environmental Hostility: An Assessment of Small, Independent Restaurant Businesses. Journal of Hospitality and Tourism Research, 26(3), 258–277. https://doi.org/10.1177/1096348002026003004
Khandwalla, P. N. (1976). Some top management styles, their context and performance. Organization and Administrative Sciences, 7(4), 21–51.
Kline, R. (2011). Principles and Practice of Structural Equation Modeling. Guilford Press, New York.
Kossyva, D., Sarri, K., & Georgolpoulos, N. (2015). Co-opetition: a business strategy for SMEs in times of economic crisis. South-Eastern Europe Journal of Economics, 12(1).
Kreiser, P. M., Anderson, B. S., Kuratko, D. F., & Marino, L. D. (2019a). Entrepreneurial orientation and environmental hostility: A threat rigidity perspective. Entrepreneurship Theory and Practice, 1042258719891389.
Kreiser, P. M., Anderson, B. S., Kuratko, D. F., & Marino, L. D. (2019b). Entrepreneurial Orientation and Environmental Hostility: A Threat Rigidity Perspective. Entrepreneurship: Theory and Practice. https://doi.org/10.1177/1042258719891389
Landrum, N. E., & Ohsowski, B. (2018). Identifying Worldviews on Corporate Sustainability: A Content Analysis of Corporate Sustainability Reports. Business Strategy and the Environment, 27(1), 128–151. https://doi.org/10.1002/bse.1989
Liu, Y., Deng, P., Wei, J., Ying, Y., & Tian, M. (2019). International R&D alliances and innovation for emerging market multinationals: roles of environmental turbulence and knowledge transfer. Journal of Business and Industrial Marketing, 34(6), 1374–1387. https://doi.org/10.1108/JBIM-01-2018-0052
Löfsten, H., & Lindelöf, P. (2005). Environmental hostility, strategic orientation and the importance of management accounting - An empirical analysis of new technology-based firms. Technovation, 25(7), 725–738. https://doi.org/10.1016/j.technovation.2004.01.007
Mahapatra, S. K., Das, A., & Narasimhan, R. (2012). A contingent theory of supplier management initiatives: Effects of competitive intensity and product life cycle. Journal of Operations Management, 30(5), 406–422. https://doi.org/10.1016/j.jom.2012.03.004
Mahmood, R., & Hanafi, N. (2013). Entrepreneurial orientation and business performance of women-owned small and medium enterprises in Malaysia: Competitive advantage as a mediator. International Journal of Business and Social Science (IJBSS), 4(1), 82–90.
Markard, J., & Truffer, B. (2006). Innovation processes in large technical systems: Market liberalization as a driver for radical change? Research Policy, 35(5), 609–625.
Martins, I., & Rialp, A. (2011). Entrepreneurial Orientation, Environmental Hostility and SMEs Profitability: A Contingency Approach. Environmental Hostility and SMEs Profitability: A Contingency Approach (September 2, 2011).
Miller, D. (1987). The structural and environmental correlates of business strategy. Strategic Management Journal, 8(1), 55–76.
Mohamad Radzi, K., Mohd Nor, M. N., & Mohezar Ali, S. (2017). The impact of internal factors on small business success: A case of small enterprises under the felda scheme. Asian Academy of Management Journal, 22(1), 27–55. https://doi.org/10.21315/aamj2017.22.1.2
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective. Journal of Business Research, 58(6), 726–735.
Mozafari, M. M., Ajali, M., & Garmei, R. (2019). The Relationship between Entrepreneurship, Marketing Ability, and Company Performance with a More Modified Role of Competitiveness in Information and Communication Technology and Computer Software. Smart Business Management Studies, 7(27), 59–102.
Nandakumar, M. K., Ghobadian, A., & O’Regan, N. (2010). Business-level strategy and performance: The moderating effects of environment and structure. Management Decision, 48(6), 907–939. https://doi.org/10.1108/00251741011053460
Rezaei-Moghaddam, K., & Izadi, H. (2019). Entrepreneurship in small agricultural quick-impact enterprises in Iran: development of an index, effective factors and obstacles. Journal of Global Entrepreneurship Research, 9(1), 17. https://doi.org/10.1186/s40497-018-0133-3
Rezaeian, M., & Wynn, M. G. (2016). Implementing Integrated Software Solutions in Iranian SMEs. EKNOW 2016, The Eighth International Conference on Information, Process, and Knowledge Management, 76–84.
Richter, M. (2013). Business model innovation for sustainable energy: German utilities and renewable energy. Energy Policy, 62, 1226–1237. https://doi.org/10.1016/j.enpol.2013.05.038
Rivera-Rodriguez, H.-A., Garcia-Merino, T., & Santos-Alvarez, V. (2017). How to Thrive in Turbulent Business Environments : Case Colombia ’ s Mobile Telephony Industry Teresa Garcia-Merino Valle Santos-Alvarez. Mediterranean Journal of Social Sciences, 8(3), 133–141. https://doi.org/10.5901/mjss.2017.v8n3p133
Robert Mitchell, J., Shepherd, D. A., & Sharfman, M. P. (2011). Erratic strategic decisions: when and why managers are inconsistent in strategic decision making. Strategic Management Journal, 32(7), 683–704.
Rosenbusch, N., Rauch, A., & Bausch, A. (2013). The Mediating Role of Entrepreneurial Orientation in the Task Environment-Performance Relationship: A Meta-Analysis. Journal of Management, 39(3), 633–659. https://doi.org/10.1177/0149206311425612
Samson, A. T., & Mahmood, R. (2015). The impact of entrepreneurial orientation, reconfiguring capability and moderation of environmental turbulence on export performance of SMEs in nigeria. Journal of Economics and Behavioral Studies, 7(3), 76.
Sharifi, H., & Zhang, Z. (2001). Agile manufacturing in practice - Application of a methodology. Journal of Operations & Production Management, 21(5/6), 772–794. https://doi.org/10.1108/01443570110390462
Siguaw, J. A., Simpson, P. M., & Enz, C. A. (2006). Conceptualizing innovation orientation: A framework for study and integration of innovation research. Journal of Product Innovation Management, 23(6), 556–574.
Singh, V., & Agrawal, A. (2017). Impact of business environment on balancing innovation process in Indian SMEs. International Journal of Business Innovation and Research, 12(2), 224. https://doi.org/10.1504/IJBIR.2017.081404
SME Corp. (2007). Statute of Science and Technology Parks. http://srm.acecr.ac.ir/fa/page/989/اساسنامه-پارک-های-علم-و-فناوری
Strobl, A., Bauer, F., & Matzler, K. (2018). The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions. Journal of World Business, December 2016, 0–1. https://doi.org/10.1016/j.jwb.2018.03.002
Strobl, A., Bauer, F., & Matzler, K. (2020). The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions. Journal of World Business, 55(2), 100931.
Su, D., Du, Q., Sohn, D., & Xu, L. (2017). Can high-tech ventures benefit from government Guanxi and business Guanxi? The moderating effects of environmental turbulence. Sustainability (Switzerland), 9(1). https://doi.org/10.3390/su9010142
Timilsina, B. (2016). Gaining and Sustaining Competitive Operations in Turbulent Business Environments What and How ?
Torkkeli, L., Puumalainen, K., Saarenketo, S., & Kuivalainen, O. (2012). The effect of network competence and environmental hostility on the internationalization of SMEs. Journal of International Entrepreneurship, 10(1), 25–49. https://doi.org/10.1007/s10843-011-0083-0
Tsai, K. H., & Yang, S. Y. (2013). Firm innovativeness and business performance: The joint moderating effects of market turbulence and competition. Industrial Marketing Management, 42(8), 1279–1294. https://doi.org/10.1016/j.indmarman.2013.06.001
Turulja, L., & Bajgoric, N. (2018). Innovation, firms’ performance and environmental turbulence: is there a moderator or mediator? European Journal of Innovation Management, EJIM-03-2018-0064. https://doi.org/10.1108/EJIM-03-2018-0064
Wijen, F., & van Tulder, R. (2011). Integrating environmental and international strategies in a world of regulatory turbulence. California Management Review, 53(4), 23–46.
Wilden, R., & Gudergan, S. P. (2014). The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence. Journal of the Academy of Marketing Science, 43(2), 181–199. https://doi.org/10.1007/s11747-014-0380-y
Wolff, J. A., & Pett, T. L. (2006). Small‐firm performance: modeling the role of product and process improvements. Journal of Small Business Management, 44(2), 268–284.
Zahra, S. A., & Bogner, W. C. (2000). Technology strategy and software new ventures’ performance. Journal of Business Venturing, 15(2), 135–173. https://