Smart Business Characteristics as an Approach to Develop Business

Performance

YANAL M. KILANI

Faculty of Business, Isra University, JORDAN

Abstract: The current study aimed at examining the impact of smart business networks' characteristics on

organizational performance from the perspective of industrial sector's decision makers in Jordan. Variables of

(Adaptability, Agility, Innovation, Ability to meet requirements, and Robust Behavior) were adopted as the

main and most obvious characteristics of SBN. Quantitative approach was adopted and (112) general managers,

which seemed to have influences the long-term plans that are adopted by the organization through robustly

supporting every milestone adopted. Study recommended granting extra attention to IT infrastructure within

organizations in order to be able to cope with the concept of SBN and benefit from all its ramifications.

Key-Words: Smart Business Network, Business Modeling, Agile Business, Flexibility, Requirements, Business

Environment, Business Performance, Organizational Performance.

Received: May 15, 2021. Revised: April 5, 2022. Accepted: May 3, 2022. Published: May 26, 2022.

1 Introduction

information for working individuals until the

stage of automating decision-making processes

and what is produced about it [1]. Among the

recent developments that cannot be neglected is

the idea of the SBN, for which many administrators

and representatives of the community of scholars

met in the Netherlands in 2006 in order to present

the idea of the smart business network, which

opened new dimensions to the concept of business

networks [2]. And its environment by integrating

In light of the international economic

transformations that adopt the single market, the

corporation lives in a changing and complex

environment dominated by uncertainty, imposing

on it many and great challenges that it has not

witnessed before. It must confront them quickly

and efficiently, to anticipate sudden changes in it,

and to secure its future at least in the short term,

especially Most of the markets are saturated with

goods and services whose life cycle decreases very

organizations and individuals in order to succeed in

an interconnected world as a result of the presence

of technology, which led to the emergence of what

is known today as a business operating system

based on the idea that the organization must

separate the logic of its behavior from its actual

As a result of the great technological development

in the business environment – as according to [6]- it

is imperative that organizations operate and

manage flexible business processes across different

ensuring satisfactory results in a dynamic array of

business networks.

Based on above argument, current study sought

to examine the influence of SBN among

organizations on its performance from the

perspective of general managers, projects

managers and operation managers within the

Mendling et al (2017) believed that the idea of

smart business is based on a network of

organizations that unite together in order to

coordinate their internal, commercial and

administrative operations in a technological manner

based on adaptive and agile behavior by relying on

advanced technological networks [1]. Through

smart business networks (SBN), organizations are

able to form effective results by structuring

business and its technology in a technological

system that provides dynamic logistical and

technological support to ensure the creation of a

business organization connected to a specific

network and able to adopt Innovative businesses

with strong strategies to compete in changing

markets and renewable environmental conditions.

[5] indicated that most smart business projects are

based on enabling smart business networks through

the union of organizations and their joining the

business network in order to increase the value

relationships between organizations, which led to

the possibility of developing medium and small

organizations through its union in SBN with large

organizations and thus benefit from the expertise of

the latter [8].

By adopting the concept of SBN, organizations

become able to achieve a lot of competitiveness

and performance development, which is known -

within the scope of SBN - as the Swarm Effect,

which is characterized by the following according

to [9], [10] and [11]:

2.2 Environment of SBN

The environment of SBN is based on cooperation

[12].

organizations in addition to behaviors Common to

ability to adhere to the requirements contained in

the organizational processes themselves.

evaluating work patterns, and then choosing the

most appropriate and directing them towards the

chosen to be the tool of study; the questionnaire

was built by researcher depending on previous

(characteristics of SBN as an independent variable,

and business performance as the dependent

variable). Questionnaire was built of liker 5 scale (5

as statistically valid ratio.

Cronbach's Alpha was utilized in order to test

reliability of study tool and its suitability to be used

as a tool of study. Results indicated that the alpha =

0.931 was higher than the acceptable ratio of 0.60,

which indicated the stability of the study tool [18].

4 Model and Hypotheses

Based on the above argument, researcher managed

to create a model that represented the nature of

From the above model, following set of hypotheses

were developed:

5 Main Hypothesis

H: SBN characteristics have an effect on

Developing Business Performance

Business Performance

Developing Business Performance

Business Performance

Following section presented results of analysis

which was operated utilizing SPSS and it appeared

in two man sections, the first took into perspective

demographics of study sample while the later

section presented statements related to study

variables and individuals' response according to

Likert 5 scale:

As it can be seen in the table below, respondents

who participated in study were mostly males

forming (78.6%) of the sample. In terms of

education and experience, it appeared that majority

of participants held (PhD) degree forming (54.5%)

of the sample with and experience of (9-11 years)

forming (44.6%) of the total sample. Study also

responded to the questionnaire were operation

Table 1. Sample characteristics according to demographics

it scored a mean of (4.03) indicating that this

variable was the most positively answered one,

compared to t6he characteristic of (adaptability)

which scored a mean of (3.79) and appeared as the

least positively answered variable of the study in

general.

6.3 Questionnaire Analysis

Going deeper into analysis, each and every

statement in the questionnaire was analyzed in

order to identify it mean and standard deviation. As

it can be seen in table below, all statements of

questionnaire scored higher than mean of scale 3.00

which indicated that individuals had a high level of

awareness regarding the statements and were able

to answer them as according to their own

perspective.

(Without innovation SBN becomes meaningless)

which scored (4.27) and appeared to have the

highest attitude from respondents, compared to the

least positively answered statements articulated

(Through SBN all organizational needs are met in a

precise approach) and scored a mean of (3.46).

Generally speaking, table below showed that all

statements were understandable for participants and

they had full awareness of its meaning and content.

the value of determination coefficient of 0.154 that

independent variable explained 15.4 % of the

reflected significance of the regression. That means

adaptability has an effect on developing business

H2: Agility has an effect on Developing Business Performance

noticed from the value of determination coefficient

of 0.18 that the independent variable explained 18

developing business performance

H3: Innovation has an effect on Developing Business Performance

Table 7 presented the results of the linear

regression test for the 3rd sub-hypothesis, it was

found that Pearson correlation coefficient of 0.393

reflected a medium correlation relationship, and we

also noticed from the value of determination

coefficient of 0.154 that independent variable

explained 15.4 % of variance in dependent variable.

The calculated F value of 20.057 was significant at

0.05 level, which reflected the significance of

regression. That meant innovation has an effect on

developing business performance

H4: Ability to meet requirements has an effect on Developing Business Performance

Table 8. Testing 4th Sub-hypothesis

In table 8 above, results of linear regression test for

4th sub- hypothesis found that Pearson correlation

coefficient of 0.519 reflected a medium correlation

relationship, and we also noticed from the value of

independent variable explained 26.9 % of the

variance in dependent variable. The calculated F

value of 40.448 was significant at 0.05 level, which

reflected the significance of the regression. That

meant ability to meet requirements has an effect on

H5: Robust Behavior has an effect on Developing Business Performance

Table 9 indicated results of the linear regression

test for the 5th sub-hypothesis, it was found that

Pearson correlation coefficient of 0.712 reflected a

high correlation relationship, and we also noticed

of the variance in dependent variable. The

calculated F value of 40.448 was significant at 0.05

level, which reflected the significance of the

regression. That means robust behavior has an

effect on developing business performance.

Variables of (Adaptability, Agility, Innovation,

Ability to meet requirements, and Robust Behavior)

were adopted as the main and most obvious

characteristics of SBN. Quantitative approach was

adopted and (112) general managers, projects

managers and operations managers responded to

the questionnaire.

Study was able to reach the following findings: