Innovation and the entrepreneurial performance in women-owned small and medium-sized enterprises in Pakistan

Abstract

PurposeThis study is an attempt to examine the impact of entrepreneurship and innovation on the entrepreneurial performance of women-owned small and medium-sized enterprises in Pakistan. The study also investigates the mediating role of innovation in the relationship between entrepreneurship and performance in women-owned businesses from emerging economy of Pakistan. Methodology/ApproachData was collected from the 261 registered women entrepreneurs from all the fifteen Pakistani women's chambers of commerce and industries by employing self-administered questionnaires for complementing a comprehensive literature review on innovation and women's entrepreneurship and performance. Data were analyzed using hierarchical multiple regression and factor analysis. FindingsThe results show a significant direct relationship between entrepreneurship, innovation and the entrepreneurial performance. The two entrepreneurial traits, namely risk taking tendency and the need for achievement have a significant effect on innovation and the entrepreneurial performance. Moreover, innovation has a direct relationship with performance and also it mediates the entrepreneurship- performance link of women- owned small and medium-sized enterprises in Pakistan. Research limitationsThe present study is limited to only women entrepreneurs who are registered with the chambers of commerce and industries in Pakistan. Women entrepreneurs associated with federations and several women business development centers have not been considered in the population. Practical implications: This study emphasizes the significance of entrepreneurship to innovation and the entrepreneurial performance in women-owned SMEs. It is a major contribution to understanding the existing practices and theories of entrepreneurship and innovation in enterprises. In order to improve performance and innovation, management should focus and promote risk taking and the need for achievement. The government should initiate support programs for women's entrepreneurial activities; promote fair competition between men and women and give special grants to women entrepreneurs in order to improve their performance.