Effect of partnership quality on SMEs success: Mediating role of coordination capability and organisational agility

Abstract

By constructing beneficial partnership quality (PQ), a firm could access external and complementary resources to improve its coordination capability (CC) and enhance organisational agility (OA) for responding to the variability of the business environment, then leading superior organizational performance (FP). This study uses the survey data collected from 257 small- and medium-sized enterprises (SMEs) in Taiwan to examine the causal effects of hypotheses testing. Results show that superior PQ enhances FP. Moreover, this research presents the mechanisms of CC and OA and offers evidence that PQ promotes FP through these mechanisms. Thus, an SME must put more effort into maintaining its interfirm partnership quality and then figuring out its effect with its internal coordination and agility activities in order to overcome the limitation of resource and development, surmount market changes and customer needs, and create a distinctive competitive advantage for further development in a dynamic business environment.

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