Driving SME performance through technological absorptive capacity and e-business innovation

This study examined the relationship between technological absorptive capacity and the business performance of small and medium-sized enterprises (SMEs), as well as the mediating effect of e-business innovation. Based on data obtained from 179 sunflower oil-processing SMEs in Tanzania and analyzed u...

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Main Authors: Ismail Abdi Changalima, Ismail Juma Ismail, David Amani
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Sustainable Technology and Entrepreneurship
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2773032824000191
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author Ismail Abdi Changalima
Ismail Juma Ismail
David Amani
author_facet Ismail Abdi Changalima
Ismail Juma Ismail
David Amani
author_sort Ismail Abdi Changalima
collection DOAJ
description This study examined the relationship between technological absorptive capacity and the business performance of small and medium-sized enterprises (SMEs), as well as the mediating effect of e-business innovation. Based on data obtained from 179 sunflower oil-processing SMEs in Tanzania and analyzed using partial least squares structural equation modeling, the study established that technological absorptive capacity influences business performance. Further, e-business innovation partially mediates the relationship between technological absorptive capacity and business performance. These findings suggest that technological absorptive capacity indirectly influences SME business performance through e-business innovation. On the other hand, findings from the multigroup analysis revealed insignificant differences in the hypothesized relationships between samples from Dodoma and Singida regions, with greater effects observed in Dodoma than in Singida for most of the relationships. The mediating effect of e-business innovation is more profound in the Dodoma sample than in the Singida sample. This study provides important empirical evidence of the role of technological absorptive capacity and e-business innovation in enhancing SME business performance. Additionally, evidence from cross-regional comparisons is crucial for examining differences in business performance among SMEs operating in the country. This study has some implications for business managers, governments, policymakers, and academics.
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spelling doaj-art-2765dd4bdd3c4b27a49c848a1f4473d22024-12-04T05:14:56ZengElsevierSustainable Technology and Entrepreneurship2773-03282025-01-0141100089Driving SME performance through technological absorptive capacity and e-business innovationIsmail Abdi Changalima0Ismail Juma Ismail1David Amani2Corresponding author.; Department of Business Administration and Management, The University of Dodoma, Dodoma, Tanzania, P.O Box 1208Department of Business Administration and Management, The University of Dodoma, Dodoma, Tanzania, P.O Box 1208Department of Business Administration and Management, The University of Dodoma, Dodoma, Tanzania, P.O Box 1208This study examined the relationship between technological absorptive capacity and the business performance of small and medium-sized enterprises (SMEs), as well as the mediating effect of e-business innovation. Based on data obtained from 179 sunflower oil-processing SMEs in Tanzania and analyzed using partial least squares structural equation modeling, the study established that technological absorptive capacity influences business performance. Further, e-business innovation partially mediates the relationship between technological absorptive capacity and business performance. These findings suggest that technological absorptive capacity indirectly influences SME business performance through e-business innovation. On the other hand, findings from the multigroup analysis revealed insignificant differences in the hypothesized relationships between samples from Dodoma and Singida regions, with greater effects observed in Dodoma than in Singida for most of the relationships. The mediating effect of e-business innovation is more profound in the Dodoma sample than in the Singida sample. This study provides important empirical evidence of the role of technological absorptive capacity and e-business innovation in enhancing SME business performance. Additionally, evidence from cross-regional comparisons is crucial for examining differences in business performance among SMEs operating in the country. This study has some implications for business managers, governments, policymakers, and academics.http://www.sciencedirect.com/science/article/pii/S2773032824000191Business performancee-Business innovationInnovationSmall and medium-sized enterprisesTechnological absorptive capacityMultigroup analysis
spellingShingle Ismail Abdi Changalima
Ismail Juma Ismail
David Amani
Driving SME performance through technological absorptive capacity and e-business innovation
Sustainable Technology and Entrepreneurship
Business performance
e-Business innovation
Innovation
Small and medium-sized enterprises
Technological absorptive capacity
Multigroup analysis
title Driving SME performance through technological absorptive capacity and e-business innovation
title_full Driving SME performance through technological absorptive capacity and e-business innovation
title_fullStr Driving SME performance through technological absorptive capacity and e-business innovation
title_full_unstemmed Driving SME performance through technological absorptive capacity and e-business innovation
title_short Driving SME performance through technological absorptive capacity and e-business innovation
title_sort driving sme performance through technological absorptive capacity and e business innovation
topic Business performance
e-Business innovation
Innovation
Small and medium-sized enterprises
Technological absorptive capacity
Multigroup analysis
url http://www.sciencedirect.com/science/article/pii/S2773032824000191
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