Strengthening the Performance of SMEs Through knowledge management, Market Orientation and Competitive Environment

Khansa Masood Chandio,Muhammad Rizwan

doi:10.29145/jmr/81/080103

Abstract

This study aims to proposes a framework for strengthening performance of SMEs. It was identified that knowledge management, market orientation, competitive environment and access to finance as an effective response of SMEs to the large firms for their survival. A model was developed with the help of extensive literature search and four propositions were exhibited with a graphical model. The framework of this study proposes Knowledge Management and Market Orientation have strong association with SMEs Performance. The model further proposes that Access to Finance and Competitive Environment serve as a contingency between the Knowledge Management and Market Orientation with SMEs Performance. This study significantly adds into the entrepreneurship literature and proposes a framework not tested before. The theoretical model has a wider applicability, and it can be used in any cultural context in general but specifically in the emerging economies.

Highlights

Economic development and growth largely depend on small and medium enterprises (SMEs) (Hussain et al, 2012; Khan, 2015). The economies of both the developed and developing countries rely on SMEs; SMEs in the developing countries have a much larger share to contribute to the economy, thereby indicating their significance in these countries
It was found that SMEs contribute 33% of the gross domestic product (GDP) and provide approximately 45% of employment in emerging economies (Hussain et al, 2012)
Arshad et al (2012) investigated if market orientation has any influence on firm performance in the presence of the mediating role of corporate social responsibility (CSR)