Strategy creation behaviour and ‘last gasp’ digitalization as predictors of sales performance and cash flow
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AbstractPurpose - Although recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation behaviour and digitalization activities increase (1) sales and (2) cash flow. Thus, predicated on novel strategy creation perspective, this inquiry investigates the crisis behaviour, sales and cash flow performance of 528 SMEs in Morocco. Design/Methodology/Approach - Novel links between (1) aggregate wage cuts, (2) variable operating hours, (3) deferred payment to suppliers, (4) deferred payment to tax authorities and (5) sales performance are developed and tested. A further link between sales performance and cash flow is also examined and the analysis is performed using a non-linear structural equation modelling technique. Findings - While there is a significant association between the strategy creation behaviours and sales performance, only variable operating hours have a positive effect. Also, sales performance increases cash flow and this relationship is substantially strengthened by e-commerce digitalization and innovation. Originality/Value – Theoretically, this is one of the first inquiries to espouse the strategy creation view to explain SMEs’ crisis-time behaviour and digitalization. For practical use, to supplement Moroccan SMEs’ propensity to seek tax deferrals, it is argued that debt and equity support measures are also needed to boost sales performance and cash flow.
CitationOnjewu, A., Nyuur, R., Paul, S. and Wang, Y. (in press) Strategy creation behaviour and ‘last gasp’ digitalization as predictors of sales performance and cash flow. International Journal of Entrepreneurial Behaviour and Research.
JournalInternational Journal of Entrepreneurial Behaviour and Research
DescriptionThis is an author's accepted manuscript of an article due to be published by Emerald in International Journal of Entrepreneurial Behavior & Research. The accepted manuscript may differ from the final published version.
Except where otherwise noted, this item's license is described as https://creativecommons.org/licenses/by-nc-nd/4.0/