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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Format: | Article |
Language: | English |
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Elsevier
2025-01-01
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Series: | Sustainable Technology and Entrepreneurship |
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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. |
format | Article |
id | doaj-art-2765dd4bdd3c4b27a49c848a1f4473d2 |
institution | Kabale University |
issn | 2773-0328 |
language | English |
publishDate | 2025-01-01 |
publisher | Elsevier |
record_format | Article |
series | Sustainable Technology and Entrepreneurship |
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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