Entrepreneurial Bricolage, Agility, and Organizational Performance: Evidence from Small and Medium scale Enterprises

Entrepreneurial bricolage and organizational agility are key strategies for overcoming resource constraints and navigating volatile market conditions in today’s contemporary business organizations. Bricolage enables organizations to creatively utilize available resources, while agility helps them quickly adapt to changing environments. Together, these strategies empower businesses to improve their performance and competitiveness, despite the numerous challenges they face in fast-paced turbulent markets. Whereas identifying the importance of entrepreneurial bricolage and organizational agility to boost the performance outcomes of organizations, there is still a significant empirical gap in understanding how these new strategies particularly contribute to the performance of business organizations. Additionally, a significant literature gap can be observed in investigating the connection between entrepreneurial bricolage and organizational agility and their collective influence on organizational performance. Small and Medium scale Enterprises located in Southern province of Sri Lanka were considered as the population of the study and 335 SMEs were approached based on a systematic random sampling technique. A structured questionnaire was used to gather primary data for the study while using some secondary data sources as well. Structural Equation Modelling approach powered by AMOS was applied to analyze the data of the study. The study findings stresses that there is a positive and significant direct relationship between entrepreneurial bricolage and organizational performance. Further, study results postulate that the link between entrepreneurial bricolage and performance can stimuli through effective adaptation of organizational agility. Organizational agility enables firms respond to sudden market changes and volatility being more flexible, thereby performing as a mediator amplifies the direct effect of bricolage on performance. Future researchers can investigate the association between bricolage, agility and performance in longitudinal studies, and in different industries to get more understanding how they respond in different circumstances.