From adaptive capability to entrepreneurial orientation: the mediating role of network capabilities in the context of SMEs. Findings from SEM and fsQCA

Abstract

To develop entrepreneurial orientation (EO), small and medium-sized enterprises (SMEs) need to possess managerial and organizational capabilities. In this paper, we posit that adaptive capabilities (AC) and network capabilities (NCs) are assets that allow an SME to distinguish itself and establish an entrepreneurial culture. We investigate the direct effect of AC on EO. Furthermore, we consider the mediating effect of NCs on the AC–EO relationship. The results show that a high level of AC fosters EO. In addition, NCs are shown to be influenced mainly by the SME's ability to cope with change and build relationships with external partners to detect entrepreneurial opportunities.

Effect of Entrepreneurial Networking Practice on Performance of Small and Medium Agro Based Youth Enterprises in Kenya

“…Evidently, the ability to innovate requires access to invisible factors such as tacit knowledge, which are hard to come by inside SMEs, but can be more easily accessed through linkages in networks (Wanambisi, 2022). Further, Bouhalleb (2023), confirms that well networked firms have more opportunities for survival, in contrast to those with poor networks. Also, Phillips et al (2015), eludes that, networking practice overcome the difficulties that exist in creating sustainable businesses among youths.…”