Entrepreneurial Orientation, Market Orientation, and SMEs Performance: The Moderating Role of Entrepreneurial Strategy

Abstract

Strategic orientation (entrepreneurial orientation and market orientation) has received widespread attention due to its effect on Small and Medium Enterprises (SMEs) performance. Therefore, this research examined the effect of entrepreneurial and market orientations on SMEs performance. It also determined the role of entrepreneurial strategy as a catalyst on entrepreneurial and market orientations. Using a questionnaire distributed to 287 SME owners/managers, while analysis for hypothesis testing applied PLS-SEM. The results showed that SMEs developing entrepreneurial and market orientations will experience high performance. It was proven that customer orientation plays a role in SMEs performance, and the effect is greater when there is entrepreneurial strategy interaction. Furthermore, the interaction between entrepreneurial strategy and entrepreneurial orientation has no role in strengthening SMEs performance. These results have an important contribution to entrepreneurial literature as well as to managers in terms of strategic orientation and entrepreneurial strategy.