International Business Management

Year: 2016
Volume: 10
Issue: 12
Page No. 2444 - 2452

Mediating Role of Competitive Advantage on the Relationship Between Entrepreneurial Orientation and the Performance of Small and Medium Enterprises

Authors : Naala Mohammad Nura Ibrahim and Rosli Mahmood

Abstract: In recent years, the performance of Small and Medium Enterprises (SMEs) is generating a vast amount of argument among practitioners, researchers, educators and policymakers. Therefore, this study examined the influence of entrepreneurial orientation and competitive advantage on SMEs performance in Nigeria. It also examined whether competitive advantage mediates the relation between entrepreneurial orientation and performance of SMEs. Self-administered questionnaires were employed to collect data from the total of 283 respondents from SMEs in Kano, North Western Nigeria. This study used Partial Least Squares Structural Equation Modeling for data analysis and hypotheses testing. The results indicates significance and positive relationship between entrepreneurial orientation and SMEs performance. Similarly, the result indicate a significance positive relationship between competitive advantage and performance. Entrepreneur’s orientations and competitive advantage are important drivers of firm performance. The findings further shown as expected, competitive advantage mediates the relationship between entrepreneurial orientation and the performance of SMEs. As implication, the study contributes to resource-based view theory from Nigerian context and offers some suggestions to policymakers.

How to cite this article:

Naala Mohammad Nura Ibrahim and Rosli Mahmood, 2016. Mediating Role of Competitive Advantage on the Relationship Between Entrepreneurial Orientation and the Performance of Small and Medium Enterprises. International Business Management, 10: 2444-2452.

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