Entrepreneurial orientation and generic competitive strategies for emerging SMEs: Financial and nonfinancial performance perspective

Abstract

In the competitive markets, business ventures have not only emphasized financial performance but nonfinancial performance has also become the need of the day due to its significant role in increasing customers. However, minor attention is given to the relationship between entrepreneurial orientation, business strategy and nonfinancial performance of emerging small and medium enterprises (SMEs). This study scrutinizes the effect of each dimension of entrepreneurial orientation (i.e., innovativeness, risk‐taking, and proactiveness) and each of generic competitive strategies (i.e., differentiation and cost leadership) on the performance (financial and nonfinancial) of emerging SMEs. We surveyed 373 SMEs operating in Pakistan through a structured questionnaire. For the data analysis and hypotheses testing, we used AMOS.21. The findings display that innovativeness, proactiveness, and risk‐taking significantly improve financial performance while insignificantly impact nonfinancial performance. Differentiation and cost leadership strategies significantly spur financial as well as nonfinancial performance of SMEs. This study advises that top managers of SMEs in the emerging economies need to maintain a focus on entrepreneurial activities and formulate unique competitive strategies to attain higher performance. This research further recommends policymakers to initiate entrepreneurship programs for SMEs to configure entrepreneurial posture of the businessmen. Further recommendations have stated.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 106 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.