Validation of a Diagnostic Model for Small and Medium-Sized Enterprises (SMEs)

Authors

Keywords:

Organizational diagnosis, small and medium-sized enterprises, structural equation modeling, partial least squares, model validation, organizational health

Abstract

This study aimed to validate a diagnostic model for small and medium-sized enterprises and evaluate its reliability, validity, explanatory power, predictive relevance, and overall model fit. This applied study employed a quantitative, cross-sectional survey design. The statistical population consisted of managers of active SMEs in East Azerbaijan, West Azerbaijan, Ardabil, and Zanjan provinces. A total of 350 managers were recruited through non-probability convenience sampling. The eligibility criteria included holding a managerial position, having at least three years of managerial or executive experience, and possessing sufficient knowledge of organizational processes and challenges. Data were collected using a researcher-developed questionnaire based on the constructs and indicators of the proposed diagnostic model. Content validity was assessed through expert judgment and the content validity ratio and content validity index. Internal consistency was examined using Cronbach’s alpha, rho_A, and composite reliability. Data were analyzed using SPSS and SmartPLS through partial least squares structural equation modeling. All indicator loadings were within the acceptable range, and Cronbach’s alpha, rho_A, and composite reliability values exceeded 0.70 for all constructs. Average variance extracted values ranged from 0.586 to 0.743, confirming convergent validity, while discriminant validity was supported by the Fornell–Larcker criterion. Bootstrapping results showed that all model indicators had t values greater than 1.96 and significance levels below 0.05. The coefficients of determination were 0.308 for strategies, 0.568 for the central diagnostic construct, and 0.612 for organizational consequences. All Q² values exceeded 0.35, indicating strong predictive relevance. The SRMR values were 0.051 for the saturated model and 0.0706 for the estimated model, while the corresponding NFI values were 0.941 and 0.906. The proposed model demonstrated satisfactory reliability, validity, explanatory power, predictive relevance, and overall fit. It can therefore be used as a valid framework for systematically identifying organizational deficiencies, examining relationships among organizational factors, and designing corrective strategies in SMEs.

Downloads

Download data is not yet available.

References

Ahmadi, A., Gharehdaghi, A., Shahbazifard, K., & Zeinali Ahmadabad, A. (2025). The Role of Business Model Innovation and Digital Marketing Capabilities in the Transformation of Accelerated Internationalization of Small and Medium-Sized Enterprises. Twenty-Second International Conference on Management and Humanities Research in Iran, Tehran.

Angelakis, A., & Manioudis, M. (2025). The historical evolution of small and medium-sized enterprises (SMEs) in Greece: The exploration of growth policies aiming to accelerate innovation-based economic transformation and knowledge economy. Journal of the Knowledge Economy, 16(2), 9603-9623. https://doi.org/10.1007/s13132-024-02300-5

Bahmani, A., & Hosseini, Z. S. (2025). The effect of digital leadership capabilities on business model innovation of small and medium-sized enterprises through managerial decision-making: A study of SMEs in Roudehen Industrial Town. First National Conference on the Role of Management and Accounting Sciences in Improving Monetary and Financial Policies, Sari.

Chong, S. C., & Kaliappen, N. (2025). Antecedents and consequences for sustainability in Malaysian small and medium-sized enterprises (SMEs). Social Responsibility Journal, ahead-of-print(ahead-of-print). https://doi.org/10.1108/SRJ-01-2024-0009

Dabbagh, R., Farzan, M., & Mohseni, B. (2025). Identifying the Challenges of Industry 4.0 Technologies for Sustainable Operations in Small and Medium-Sized Enterprises. Research in Production and Operations Management, 16(1), 1-24.

Hu, C., Din, Q. M. U., & Tahir, A. (2025). Artificial Intelligence Symbolic Leadership in Small and Medium-Sized Enterprises: Enhancing Employee Flexibility and Technology Adoption. Systems, 13(4), 216. https://doi.org/10.3390/systems13040216

Kabiri, M., Parvini, A., & Ghaedzadeh Mokhbolandi, A. (2025). Internationalization of Small and Medium-Sized Enterprises: The Role of Product Innovation, Market Intelligence, and Marketing Capabilities in Creating Sustainable Competitive Advantage 11th National Conference on Modern Studies and Research in the Field of Humanities, Management, and Entrepreneurship in Iran, Tehran.

Kahrizi, O. A., Amiri, Z., & Tavoghi Mianji, Z. (2025). The Role of International Entrepreneurship in Creating Export Opportunities for Small and Medium-Sized Enterprises and Start-Up Businesses. Eleventh National Conference on Modern Studies and Research in Humanities, Management, and Entrepreneurship in Iran, Tehran.

Karimi, K., & Mahmoudi Renani, E. (2025). Factors Affecting the Acceptance of Artificial Intelligence in E-Commerce by Small and Medium-Sized Enterprises. Quarterly Journal of New Approaches in Management and Marketing, 4(1), 62-83.

Khan, N. R., Gul, I., Khan, M. R., Khan, I., & Umar, M. (2025). A comprehensive framework for optimizing workplace innovation in small and medium-sized enterprises: an emerging economy perspective. Journal of Small Business and Enterprise Development, 32(1), 1-27. https://doi.org/10.1108/JSBED-07-2023-0314

Kokubun, K. (2025). Digitalization, Open Innovation, Ambidexterity, and Green Innovation in Small and Medium-Sized Enterprises: A Narrative Review and New Perspectives. https://doi.org/10.20944/preprints202504.0009.v1

Kusa, R., Suder, M., Gretzinger, S., & Schachtebeck, C. (2025). Entrepreneurial orientation and networking as enablers of firm performance: A fuzzy-set based comparative analysis of micro, small and medium-sized enterprises. Management revue, 36(2), 1-16. https://doi.org/10.31083/MRev43389

Meier, A., Eller, R., & Peters, M. (2025). Creating competitiveness in incumbent small-and medium-sized enterprises: A revised perspective on digital transformation. Journal of Business Research, 186, 115028. https://doi.org/10.1016/j.jbusres.2024.115028

Mohebbi Amirhosseini, A., Mohammadkazemi, R., & Talebi, K. (2025). Scientific Mapping of the Growth of Industrial Small and Medium-Sized Enterprises in Iran’s Industrial Estates: A Scientometric Study. Karafan Scientific Journal. https://doi.org/10.48301/kssa.2026.511626.3168

Molosiwa, T., Holland, J., Molosiwa, T., & Holland, J. (2025). The impact of financial literacy on the performance of small and medium-sized enterprises (SMEs): A review of literature. International Journal of Research in Business & Social Science, 14(3). https://doi.org/10.20525/ijrbs.v14i3.4157

Mousavi, S. M. (2025). Pathology of the Denison model of organizational culture in entrepreneurial tourism organizations. Journal of Education and Entrepreneurship Management, 4(7), 101–120. https://eme.razi.ac.ir/article_3779.html

Mwaanga, L. C., & Chrine, C. H. (2024). An Investigation Into Social Media Utilisation in Small and Medium-Sized Enterprises and Its Effect on Business Performance: A Case Study of Kabwata Township, Lusaka. Journal of Economics Finance and Management Studies, 07(08). https://doi.org/10.47191/jefms/v7-i8-04

Naeimi, S., Taheri, M., & Khoshbakht, B. (2024). Designing a Strategic Model for the Development of Small and Medium-Sized Enterprises with Emphasis on Digital Ecosystems. Intelligent Strategic Management, 79-94.

Najaflou, H. (2024, 2024/02/06-2024/02/07). Examining the Impact of Artificial Intelligence on Marketing and Branding Strategies in Small and Medium-Sized Enterprises Third International Congress on Management, Economics, Humanities, and Business Development,

Najari, R., & Salehi Dolatabad, S. (2024). Examining the Effect of Strategic Human Resource Management on Innovation and Creativity in Small and Medium-Sized Enterprises: A Gift and Reciprocal Gift Theory Approach. Eighth National Conference on Management, Economics, and Islamic Sciences, Tehran.

Nowrouzi, M., Khatami, H., & Haji Hasani, S. (2024). Designing a Typology Framework for Government Support of Small and Medium-Sized Enterprises. Management Improvement, 18(2), 21-47. https://doi.org/10.22034/jmi.2024.440936.3057

Park, J., Yoo, J. W., & Park, H. (2024). Understanding User Resistance Of smart Factory Adoption: A focus on Small and Medium-Sized Enterprises. Asia Pacific Journal of Marketing and Logistics, 36(7), 1782-1800. https://doi.org/10.1108/apjml-09-2023-0896

Sadr Tabatabaei, S. M., & Salgi, M. (2025). Narrative Inquiry of Credit-Guidance Policies in the Islamic Banking Industry: A Case Study of Small and Medium-Sized Enterprises. Islamic Financial Research, 14(1), 57-89.

Sampet, J., Sarapaivanich, N., & Wanchuplow, J. (2025). Bridging the Distance: Spatial and Social Factors Influencing Audit Quality and Auditor Independence in Small and Medium-Sized Enterprises. Journal of Risk and Financial Management, 18(7), 374. https://doi.org/10.3390/jrfm18070374

Sardari, A., & Shabihzadeh, M. (2024). Networking and International Knowledge Acquisition in Small and Medium-Sized Enterprises: The Role of Global Mindset and the Mediation of International Entrepreneurial Orientation. Journal of International Business Management, 7, 83-103.

Soomro, R. B., Memon, S. G., Dahri, N. A., Al-Rahmi, W. M., Aldriwish, K., Salameh, A. A., & Saleem, A. (2024). The adoption of digital technologies by small and medium-sized enterprises for sustainability and value creation in Pakistan: The application of a two-staged hybrid SEM-ANN approach. Sustainability, 16(17), 7351. https://doi.org/10.3390/su16177351

Taleb, M. A., Tantawi, P., Ragheb, M., & Amara, D. F. (2025). Small and Medium-Sized Enterprises’ Resilience to Socioeconomic Challenges in Emerging Economies: The Impact of Entrepreneurial Orientation on Organisational Ambidexterity. Socioeconomic Challenges, 9(2), 156-179. https://doi.org/10.61093/sec.9(2).156-179.2025

Publication Timeline

Published
Submitted
Revised
Accepted

Issue

Section

مقاله کیفی

How to Cite

Moeini, R. ., Taghizadeh, H. ., Honarmand Azimi, M. ., Khoshfetrat, S. . ., & Ramezani, M. . (1405). Validation of a Diagnostic Model for Small and Medium-Sized Enterprises (SMEs). Journal of Technology in Entrepreneurship and Strategic Management (JTESM), 1-26. https://journaltesm.com/index.php/journaltesm/article/view/505