Dimensions of Entrepreneurial Orientation and SME Performance: Moderating Effect of Absorptive Capacity of the Firm
By: H. M. A. Herath
Abstract
This paper investigates a model of SME performance based on the dimensions of entrepreneurial orientation and absorptive capacity of the firm. The model tested the direct effects of innovativeness, risk-taking and proactiveness on firm performance and the moderating role of absorptive capacity on the relationship between the dimensions of entrepreneurial orientation and firm performance. Structural equation modelling with multi group analysis was used to test the model in the context of small and medium scale hotel and restaurant industry in Sri Lanka. Results indicate that highly entrepreneurial-oriented SMEs with high level of absorptive capacity achieve higher level of performance.
DOI: https://doi.org/10.4038/kjhrm.v15i1.74 | Journal eISSN: 2738-2192
Language: English
Page range: 89 - 108
Published on: Jun 25, 2020
Published by: Department of Human Resource Management, University of Kelaniya
In partnership with: Paradigm Publishing Services
© 2020 H. M. A. Herath, published by Department of Human Resource Management, University of Kelaniya
This work is licensed under the Creative Commons Attribution 4.0 License.