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The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities

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  • Jaffar Abbas

    (School of Media and Communication (SMC), Antai College of Economics and Management (ACEM), Shanghai Jiao Tong University (SJTU), No. 800 Dongchuan Road Minhang District, Shanghai 200240, China)

  • Saqlain Raza

    (School of Business Management, Universiti Utara Malaysia, Sintok, Kedah 06010, Malaysia)

  • Mohammad Nurunnabi

    (Department of Accounting, Prince Sultan University, P.O. Box 66833, Riyadh 11586, Saudi Arabia
    St Antony’s College, University of Oxford, 62 Woodstock Road, Oxford OX2 6JF, UK)

  • Mohd Sobri Minai

    (School of Business Management, Universiti Utara Malaysia, Sintok, Kedah 06010, Malaysia)

  • Shaher Bano

    (School of Sociology and Political Science, Shanghai University, No. 99 Shangda Road, Baoshan, Shanghai 200444, China)

Abstract

This precise study is the first to perform a focalized investigation on the relationship between entrepreneurial business networks and sustainable performance of small firms. The entrepreneurial business network is a multifaceted business network of business firms, working together to achieve business objectives. Business relationships and firm aggregations are the main categories of entrepreneurial business networks, which help small and medium-sized enterprises to become more dynamic, innovative and competitive. The entrepreneurial business network is a networking, which provides a platform to build business relationships, identify, develop or act upon economic opportunities, share information and seek potential business partners for ventures. However, few studies have sought to understand the association of entrepreneurial business network (EBN) and firms’ sustainable performance in the context of Pakistan. This investigation aims to examine the relationship between EBN and small firms’ sustainable performance by applying the Smart PLS-SEM software V-3.2.8. This study explores how dynamic capabilities mediate the relationship between entrepreneurial business network and sustainable performance of small firms. The data received reports on small firms, manufacturing surgical instruments. The findings indicated that the entrepreneurial business network had a significant positive relationship with dynamic capabilities, which in turn presented a positive relation to a sustainable performance of small firms. By developing sustainable EBN, small firms can achieve sustainable performance by implementing dynamic capabilities in a competitive environment. The results affirmed that highly entrepreneurial firms showed a tendency to create a business network for achieving sustainable performance. The results also revealed that firms using business networks and dynamic capabilities efficiently; achieved their sustainable performance. The findings indicated that the study proposed a holistic and systematic model to achieve sustainable performance through firms’ dynamic capabilities. The generalizability of these findings provides useful insight and direction for future studies in Pakistan.

Suggested Citation

  • Jaffar Abbas & Saqlain Raza & Mohammad Nurunnabi & Mohd Sobri Minai & Shaher Bano, 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:11:p:3006-:d:234924
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