After Clouds Sunshine: A Theoretical Framework for SMEs Survival amidst COVID-19 Pandemic

Abstract

Recently, entrepreneurial orientation (EO) among small and medium-sized enterprises (SMEs) has become an essential topic among business practitioners and academics. Since the current economic and social landscape changed with the emersion of the COVID-19 pandemic, traditional business practices that focus on profit in a highly competitive environment can no longer be relied on by SMEs. In today's world, profit is not the only element influencing a business's survival and success. Consequently, SMEs should implement a value-creation strategy and seek a sustainable competitive advantage. EO is currently a critical aspect in assisting businesses in achieving such a niche. Despite the relevance of EO, there have been very few studies that link EO to SME performance. According to this viewpoint, this study discovered a theoretical relationship between EO and SMEs performance through a comprehensive literature review and built a conceptual framework for empirical validation. This study also elucidates the role that innovation practices (IP) play as a mediator in this relationship, which has received little attention in previous research. Moreover, the government is the primary source of support for technology, innovativeness, and finance. Thus, the conceptual model also examines the moderation role of government support in the relationship between IP and SMEs' performance.