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Dimensions of Entrepreneurial Orientation and SME Performance: Moderating Effect of Absorptive Capacity of the Firm

Author:

H. M. A. Herath

Wayamba University of Sri Lanka, LK
About H. M. A.
Department of Business Management
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Abstract

This paper investigates a model of SME performance based on the dimensions of entrepreneurial orientation and absorptive capacity of the firm. The model tested the direct effects of innovativeness, risk-taking and proactiveness on firm performance and the moderating role of absorptive capacity on the relationship between the dimensions of entrepreneurial orientation and firm performance. Structural equation modelling with multi group analysis was used to test the model in the context of small and medium scale hotel and restaurant industry in Sri Lanka. Results indicate that highly entrepreneurial-oriented SMEs with high level of absorptive capacity achieve higher level of performance.
How to Cite: Herath, H.M.A., 2020. Dimensions of Entrepreneurial Orientation and SME Performance: Moderating Effect of Absorptive Capacity of the Firm. Kelaniya Journal of Human Resource Management, 15(1), pp.89–108. DOI: http://doi.org/10.4038/kjhrm.v15i1.74
Published on 25 Jun 2020.
Peer Reviewed

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