ENTREPRENEURIAL ORIENTATION AND ITS EFFECT TOWARD SME PERFORMANCE THROUGH STRATEGIC FLEXIBILITY ON FASHION INDUSTRY IN MALANG

The sports goods manufacturing sector of Pakistan is comprised of 10,400 small and medium enterprises and annually contributes 6% to the country’s GDP. Despite its prominent role in promoting economic growth research on the sports goods manufacturing sector of Pakistan remains limited. This research analyzed the effect of entrepreneurial orientation, access to finance, and strategic flexibility on SMEs performance in the sports goods manufacturing sector of Sialkot, Pakistan. 400 SMEs were randomly selected out of 10,400 sports manufacturing SMEs in Sialkot, Pakistan. A pen and paper survey method was utilized to collect data from SMEs managers. Out of 400 SMEs contacted 372 agreed to participate in research. 372 usable questionnaires were received back. The results show that entrepreneurial orientation and access to finance have a significant positive effect on SMEs performance. Whereas, strategic flexibility was found to be insignificant in affecting SMEs performance.

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Implications of strategic flexibility in small firms: the moderating role of absorptive capacity

South Asian Journal of Business Studies ◽

10.1108/sajbs-10-2018-0104 ◽

2019 ◽

Vol 8 (3) ◽

pp. 370-386 ◽

Cited By ~ 1

Author(s):

Sanjay Chaudhary

Keyword(s):

Firm Performance ◽

Empirical Evidence ◽

Absorptive Capacity ◽

Entrepreneurial Orientation ◽

Small Firms ◽

Dynamic Capabilities ◽

Strategic Flexibility ◽

Content Type ◽

The Relationship

Purpose Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms. Design/methodology/approach The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship. Findings The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation. Research limitations/implications The empirical findings of the study are limited to small firms from the automotive service industry. Practical implications The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance. Originality/value As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.

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The Mediating Role of Strategy Flexibility at the Effects of Entrepreneurial Orientation and Market Orientation on Business Performance Small Medium Enterprise Craft Sector in Indonesia

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.b1134.0982s919 ◽

2019 ◽

Vol 8 (2S9) ◽

pp. 634-641

Keyword(s):

Market Orientation ◽

Entrepreneurial Orientation ◽

Structural Equation ◽

Business Performance ◽

Small And Medium Enterprises ◽

Equation Model ◽

Strategic Flexibility ◽

And Performance ◽

Medium Enterprises ◽

Positive Effect

The research intends to test the effects of entrepeneurship orientation and market orientation on business performance with strategic flexibility as mediator. Considering Indonesia has been even today eagerly support entrepreneurial, it intends to explore relationship between the three variables in small and medium enterprises context. The study takes place in Indonesia with 194 sampel. For questionnaire distribution, it makes use of online tool with google form. The unit of analysis is owners, managers or decision-makers at the SMEs. For data analysis, it applies structural equation model with WarpPLS approach. The results demonstrate that entrepreneurial orientation does not significant effect on business performance, but has a positive effect on strategic flexibility. While market orientation has a positive effect on business performance, but it does not have significant effect on strategic flexibility. It means that strategic flexibility mediate relationship between entrepreneurial orientation and performance, while it does not hold true for relationship between market orientation and business performance.

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