Influential Indicators and Measurements of Mediating and Moderating Roles on SME Performance

Influential Indicators and Measurements of Mediating and Moderating Roles on SME Performance

Seok-Soo Kim (Hansung University, South Korea)
Copyright: © 2022 |Pages: 18
DOI: 10.4018/IJKM.20220101.oa7
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Abstract

Overcoming the failure of SMEs has been an important research topic. The critical research finding is that it has verified the essential elements of performance improvement. We presented a solution to the research question, "Is there a causal relationship between the effect on SMEs' success on capacity and business performance?". We analyzed whether the competence of SMEs had a mediating effect between success variables and performance. Secondary effects were empirically studied by converting independent variables to Higher-Order Component (HOC). The second-order variable of management influenced financial, non-financial, and technical performance, and the second-order variable of technology affected technical performance. As a result of introducing demographic variables as a controlling variable for performance, gender, and year of establishment showed a moderating effect on technical and non-financial performance. We expect to contribute to practical application to SME CEOs and government policymakers, support organizations, academia, and industry.
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Background Theory And Hypotheses

As researcher looked at the effect of variables on the SMEs’ competency and performance:

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