Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis
Abstract Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2022-06-01
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| Series: | Journal of Innovation and Entrepreneurship |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s13731-022-00232-5 |
| _version_ | 1818256988247687168 |
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| author | Marvello Yang Norizan Jaafar Abdullah Al Mamun Anas A. Salameh Noorshella Che Nawi |
| author_facet | Marvello Yang Norizan Jaafar Abdullah Al Mamun Anas A. Salameh Noorshella Che Nawi |
| author_sort | Marvello Yang |
| collection | DOAJ |
| description | Abstract Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic orientation and economic sustainability under unpredictable circumstances. This study collected quantitative data from a total of 284 halal small and medium enterprises (SMEs) from Indonesia through structured interviews. Data were analysed using partial least squares structural equation modelling (PLS-SEM). Moreover, this study adopted artificial neural network (ANN) analysis for a model-free estimation using non-linear, multilayer, and parallel regression. The results revealed statistically significant and positive effect of strategic orientation on economic sustainability. Additionally, this study found that competitive advantage expanded the effect of strategic orientation on economic sustainability. Findings of ANN analysis confirm high prediction accuracy of the model. Findings of the sensitivity analysis highlighted the importance of innovation, network and technological orientation, and the positive effect of competitive advantage on halal SMEs economic sustainability. In order to achieve long-term economic sustainability, halal SMEs should therefore focus on innovation capacity, vertical and horizontal networking and adoption of the latest technologies. The uniqueness of this study focused on the strategic orientation and value of competitive advantage of halal SMEs towards economic sustainability. Additionally, this study was the first to develop hybrid SEM–neural network analysis to apply sensitivity analysis for the evaluation of the contribution of each exogenous predictor towards the endogenous construct. |
| first_indexed | 2024-12-12T17:36:30Z |
| format | Article |
| id | doaj.art-d06609b57f75478581adc6b36c1e274c |
| institution | Directory Open Access Journal |
| issn | 2192-5372 |
| language | English |
| last_indexed | 2024-12-12T17:36:30Z |
| publishDate | 2022-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Innovation and Entrepreneurship |
| spelling | doaj.art-d06609b57f75478581adc6b36c1e274c2022-12-22T00:17:11ZengSpringerOpenJournal of Innovation and Entrepreneurship2192-53722022-06-0111112810.1186/s13731-022-00232-5Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysisMarvello Yang0Norizan Jaafar1Abdullah Al Mamun2Anas A. Salameh3Noorshella Che Nawi4Department of Management, Faculty Economic and Business, Widya Dharma University PontianakFaculty of Economics and Business, University Malaysia SarawakUKM-Graduate School of Business, Universiti Kebangsaan MalaysiaDepartment of Management Information Systems, Prince Sattam Bin Abdulaziz UniversityFaculty of Entrepreneurship and Business, Universiti Malaysia KelantanAbstract Economic sustainability involves the development of an organisation that meets its future needs through an integrated policy, planning, and social learning process. The purpose of this study was to investigate the mediating role of competitive advantage in the relationship between strategic orientation and economic sustainability under unpredictable circumstances. This study collected quantitative data from a total of 284 halal small and medium enterprises (SMEs) from Indonesia through structured interviews. Data were analysed using partial least squares structural equation modelling (PLS-SEM). Moreover, this study adopted artificial neural network (ANN) analysis for a model-free estimation using non-linear, multilayer, and parallel regression. The results revealed statistically significant and positive effect of strategic orientation on economic sustainability. Additionally, this study found that competitive advantage expanded the effect of strategic orientation on economic sustainability. Findings of ANN analysis confirm high prediction accuracy of the model. Findings of the sensitivity analysis highlighted the importance of innovation, network and technological orientation, and the positive effect of competitive advantage on halal SMEs economic sustainability. In order to achieve long-term economic sustainability, halal SMEs should therefore focus on innovation capacity, vertical and horizontal networking and adoption of the latest technologies. The uniqueness of this study focused on the strategic orientation and value of competitive advantage of halal SMEs towards economic sustainability. Additionally, this study was the first to develop hybrid SEM–neural network analysis to apply sensitivity analysis for the evaluation of the contribution of each exogenous predictor towards the endogenous construct.https://doi.org/10.1186/s13731-022-00232-5Consumer orientationCompetitor orientationTechnology orientationNetwork orientationInnovation orientationCompetitive advantage |
| spellingShingle | Marvello Yang Norizan Jaafar Abdullah Al Mamun Anas A. Salameh Noorshella Che Nawi Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis Journal of Innovation and Entrepreneurship Consumer orientation Competitor orientation Technology orientation Network orientation Innovation orientation Competitive advantage |
| title | Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis |
| title_full | Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis |
| title_fullStr | Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis |
| title_full_unstemmed | Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis |
| title_short | Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis |
| title_sort | modelling the significance of strategic orientation for competitive advantage and economic sustainability the use of hybrid sem neural network analysis |
| topic | Consumer orientation Competitor orientation Technology orientation Network orientation Innovation orientation Competitive advantage |
| url | https://doi.org/10.1186/s13731-022-00232-5 |
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