The role of entrepreneurial orientation and organisational learning capabilities on SME performance

Abstract

The effect of entrepreneurial orientation (EO) on performance has been predominantly studied in matured economies and large firms ignoring SMEs. This study sought to address this gap and contribute to SME literature on EO performance relationship by enhancing the EO performance scope adding organisational learning capability (OLC) to the equation thereby augment the EO performance relationship. This study posited OLC as moderator to the EO performance relationship focusing on SMEs in South African context. This provided contextual explanation of EO performance relationship using OLC as moderating variable. Data was collected via online questionnaires from SME business owners operating in multiple industries in South Africa. There were 33 participants who responded to the survey, data collected was used to measure reliability and validity of measurement instrument. Linear regression analyses were performed to understand relationships between variables and if OLC moderated the EO performance for SMEs. Linear regression results found no moderate relationship between EO and performance which was not statistically significant and significant relationship was found between EO and OLC. The multiple regression analysis revealed that OLC moderating impact on EO performance was positive, weak and not statistically significant. The findings of the study suggested there is relationship between the variables which due to sample limitations might not have been statistically significant, however finding provided empirical evidence that future studies can enhance on.