Mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of Saudi SMEs

Mohammed Abdulrab,Hamad Balhareth,Mohammed A Alwaheeb,Naif Ghazi M Alshammari,Serhan A Al-Shammari,Yaser Hasan Salem Al-Mamary

doi:10.14488/bjopm.2021.029

Abstract

Goal: This study aims to examine the mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of small and medium enterprises (SMEs) in Saudi Arabia. Design/Methodology/Approach: Quantitative analysis techniques is used in this study. Data from 206 KSA owners / managers of SMEs is obtained and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Results: Findings indicate that strategic orientations mediate the relationship between entrepreneurial orientation and performance of SMEs in Saudi Arabia. Limitations of the investigation: The proposed model may not be generalised and must be applied in other contexts and cultures. Practical implications: This study indicates that KSA managers should maintain emphasis on entrepreneurship and establish unique strategic techniques to improve efficiency. Policymakers are recommended to establish entrepreneurship initiatives for SMEs to form entrepreneurship. Additional recommendations are also provided. Originality / Value: This study adds to the current body of knowledge by addressing the mediating role of market and technology orientation in the relationship between entrepreneurial orientation and performance of Saudi SMEs.

Highlights

According to the World Bank (2020), small and medium-sized enterprises (SMEs) are mandated to be productive and to pursue creative and proactive techniques towards analytical thought in the current complex market climate
Originality / Value: This study adds to the current body of knowledge by addressing the mediating role of market and technology orientation in the relationship between entrepreneurial orientation and performance of Saudi SMEs
Entrepreneurial orientation is hypothesised to have a positive impact on the performance of SMEs, which the results reveal to be significant (β = 0.370, t = 2.600, p < 0.05)

Summary

Introduction

According to the World Bank (2020), small and medium-sized enterprises (SMEs) are mandated to be productive and to pursue creative and proactive techniques towards analytical thought in the current complex market climate. SME strategies play a critical role in advancing the corporate mission, maintaining vision and establishing the competitive advantages of a. SMEs should be able to challenge conventional management styles in developed countries and pursue efforts to convert these into constructive, highly successful and value-added strategy. In the Saudi context, SMEs need to implement solutions that generate value-added technologies for consumers and companies (Alrubaishi & Robson, 2019)

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Conclusion