The impact of market uncertainty on international SME performance
Shahab Sharfaei,
Jeen Wei Ong and
Adedapo O. Ojo
Cogent Business & Management, 2023, vol. 10, issue 1, 2198160
Abstract:
This research explores the performance of international small and medium-sized enterprises (SMEs) in Iran. Iran as the 18th biggest market in the world, can potentially be an attractive market for firms. However, SMEs need to navigate the market uncertainty to achieve their performance goals. This study explores this issue by placing competitive advantage to mediate market uncertainty and international SMEs’ performance. A foreign SME in Iran is considered a company with 99 employees or less, and which was founded abroad but have an established branch within the country. We used the partial least square (PLS) method to analyse the data gathered from 166 foreign SMEs in Iran. The findings imply that market uncertainty significantly affects performance. Nevertheless, competitive advantage does not mediate the relationship. This study offers insights to international SMEs on how to leverage comprehensive knowledge on market uncertainty to enhance their performance in developing markets. The empirical findings from this research reaffirms the notion that international SMEs ought to be informed about the effects of uncertainty in order to achieve high performance. This is particularly important in developing markets which are more prone to ambiguity.
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2023.2198160 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2198160
Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20
DOI: 10.1080/23311975.2023.2198160
Access Statistics for this article
Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar
More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().