The Mediating Role of Entrepreneurial Orientation Between Relational Capital and Firm Performance: Evidence From Iranian SMEs

Abstract

Performance is the entire indicator of the ability of an organization to satisfy its stakeholders that can be measured in subjective way (Primary data) for SMEs. This study explores the mediating effect of entrepreneurial orientation (EO), looking at the relationship between relational capital and performance. A questionnaire was administered to 150 manufacturing small and medium enterprises (SMEs) in Iran. A model relating relational capital to performance through EO is tested using Smart PLS with two stage analysis, and the results turned out positive. Additionally, results indicate positive relationship between relational capital and EO, as well as EO to performance. The main contribution of this study resides in addressing the signification of EO as key mechanism to transform the advantages of relational capital to improve firm performance.