Impact of Entrepreneurial Orientation on SME Performance : The Moderating Role of Environmental Turbulence
DOI:
https://doi.org/10.17010/pijom/2023/v16i5/172823Keywords:
performance
, SMEs, entrepreneurial orientation, textile, environmental turbulenceJELClassification Codes
, M13, L25, O3, O31Paper Submission Date
, June 20, 2022, Paper sent back for Revision, April 2, 2023, Paper Acceptance Date, April 25, Paper Published Online, May 15, 2023Abstract
Purpose : Worldwide, the development of SMEs is recognized as a crucial sector of growth. According to contingency and RBV theory, this study was designed to measure entrepreneurial orientation and SME performance in Pakistan’s textile sector, while environmental turbulence moderated their relationship.
Methodology : The research framework was investigated using a self-administrative questionnaire. Based on a simple random sampling method, 379 SME owners/managers were selected and analyzed. SPSS and Smart PLS 3.0 were used to test the hypotheses.
Findings : The current study concluded that entrepreneurial orientation (EO) significantly impacted the performance of SMEs. Moreover, EO and the performance of SMEs were also moderated by environmental turbulence (ET).
Practical Implications : To attain superior performance, SMEs should focus on entrepreneurship, formulate unique strategies, and anticipate the turbulent environment.
Originality : Prior research has focused only on direct relationships and in other contexts, the current work builds the combination of contingency and RBV theory by considering the empirical explanation of entrepreneurial orientation and environmental turbulence. Additionally, it identified new research opportunities in strategic management.
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