Business ties, adaptive capability and technological turbulence: implications for SMEs’ performance in Turkey

Abstract

Purpose

Based on the dynamic capability theory, the purpose of this study is to examine the mediating role of the adaptive capability of small- and medium-sized enterprises (SMEs) on the relationship between business ties and firm performance. This study also investigates the moderating role of technological turbulence in those relationships.

Design/methodology/approach

Data were collected from 1,265 SME managers in Turkey. Partial least squares analysis, a variance-based structural equation modelling, was applied to examine a mediated moderation model.

Findings

The results support the proposed framework illustrating that business ties are positively related to adaptive capability and firm performance. Moreover, adaptive capability mediates the relationship between business ties and firm performance. The results also indicate that the indirect effect of business ties on firm performance through adaptive capability was moderated by technological turbulence.

Practical implications

SMEs in emerging economies need to enhance their business ties and invest in their adaptive capabilities to increase their performances. This relation becomes more strategic under technologically turbulent environments.

Originality/value

By introducing empirical data from the Turkish emerging context, this paper contributes to our understanding of how SMEs’ relational networks contribute to firm performance. From the dynamic capability perspective, it shows how SMEs use their adaptive capabilities to environmental challenges. It also fills an important gap by showing that environmental uncertainties (specifically technological turbulence) moderate the adaptive capability’s mediating impact on the relationship between business ties and firm performance. The results also provide potential future directions for dynamic capabilities research in emerging contexts.

Citation

Uzkurt, C., Ekmekcioglu, E.B. and Ceyhan, S. (2024), "Business ties, adaptive capability and technological turbulence: implications for SMEs’ performance in Turkey", Journal of Business & Industrial Marketing, Vol. 39 No. 3, pp. 568-580. https://doi.org/10.1108/JBIM-01-2023-0049