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Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?

Author

Listed:
  • Ayman Abu-Rumman

    (Al Ahliyya Amman University)

  • Ata Shraah

    (The Hashemite University)

  • Faisal Al-Madi

    (The Hashemite University)

  • Tasneem Alfalah

    (German Jordanian University)

Abstract

Performance of small and medium enterprises (SMEs) has been addressed widely in the literature. Both developed and developing countries are highly concerned about the growth and performance of SMEs. The literature exploring performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study was conducted with the aim being to identify the mediating role of dynamic capabilities which are developed by entrepreneurial networks and entrepreneurial orientation. The study collected the data from a sample of SMEs based in Jordan which were connected through a closed network and were the part of groups. The data was collected via an electronic questionnaire, and100 SMEs were contacted and invited to participate in the survey on a purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that amongst the chosen firms, entrepreneurial networking has an insignificant impact; however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

Suggested Citation

  • Ayman Abu-Rumman & Ata Shraah & Faisal Al-Madi & Tasneem Alfalah, 2021. "Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-021-00170-8
    DOI: 10.1186/s13731-021-00170-8
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    5. Rennie Bakashaba & Benjamin Musiita & Sarah Nabachwa, 2024. "Entrepreneurial Networking and Performance of Ugandan Manufacturing SMEs: The Mediating Role of Innovation Capabilities," Journal of Economics and Behavioral Studies, AMH International, vol. 16(2), pages 87-98.
    6. Ouni, Selma & Boujelbene, Younes, 2023. "The mediating role of big five traits and self-efficacy on the relationship between entrepreneurship education and entrepreneurial behavior: Study of Tunisian university graduate employees," Evaluation and Program Planning, Elsevier, vol. 100(C).
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    8. Naeem A. Albihany & Abdullah M. Aljarodi, 2024. "The role of personal connections Wasta on early-stage entrepreneurial orientations: empirical evidence from Saudi Arabia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    9. Ehsan Fansuree Surin & Oswald Timothy Edward & Sayuthi Shaaran & Rohana Ngah, 2023. "Understanding Entrepreneurial Orientation based Research: A Proposed New Theoretical Framework," Information Management and Business Review, AMH International, vol. 15(3), pages 23-35.
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