Firm Resources, Firm Capabilities, and Marketing Strategy as Drivers of Firm Performance: Evidence from Jewelry SMEs in Pakistan
Contributors
- Anam Khan Undergraduate Scholar (BS), Karachi University Business School, University of Karachi, Sindh, Pakistan.
- Dr. Sohaib Uz Zaman Assistant Professor, Karachi University Business School, University of Karachi, Sindh, Pakistan.
Abstract
Small and Medium Enterprises (SMEs) are an integral component of the economic activities of Pakistan. Indeed, the jewellery industry is a unique industry as it is relevant meshed with artisanal expertise and has a steady buying demand on the local level due to the cultural significance of the industry. But, there are some problems facing jewelry SMEs and preventing them to compete and perform effectively. This study examines the relationships which exist among the three components of the Firm Resources, Firm Capabilities, Marketing Strategy and Firm Performance for jewelry Small and Medium Scale Enterprises of Pakistan. Theoretical framework consists of the Resource Based View (RBV), Dynamic Capabilities Theory (DCT) and Contingency Theory. A cross-sectional survey was conducted using quantitative tools and variables with the target group of jewelry SMEs owners, managers and senior management of the major markets in commercial centers of Pakistan. The 320 questionnaires were distributed and 250 were obtained as a usable return, a rate of 78.1%. Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5000 bootstraps was used to analyze the data using SmartPLS 4. Results - All three hypotheses are accepted. Firm Resources has p<0.001 and β>0.412 relationship with Firm Capabilities. Marketing Strategy was positively and significantly influenced by the firm capability (β=0.385, p<0.001). Among the three constructs, Marketing Strategy has positive and significant and strong relationship with Firm Performance (β=0.468, p<0.001). The findings showcase the need to establish strong resources, enhance organizational capacity and implement systematic market strategies for strengthening jewelry SMEs in Pakistan.
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Corresponding Author
Anam Khan
Undergraduate Scholar (BS), Karachi University Business School, University of Karachi, Sindh, Pakistan.
Corresponding Author: [email protected]
