The effect of entrepreneurial orientation, market orientation, total quality management and organizational culture on the SMEs performance: A theoretical framework

Abstract

In the contemporary, Entrepreneurial orientation and Market orientation have become important topics among business academics and practitioners. Since business environment has become more competitive, the need to develop and improve internal resources is now a prerequisite for global survival; entrepreneurial orientation and market orientation are now the crucial falcons that are assisting the firms to achieve such a niche. Despite the importance of MO and EO, researches that link these concepts to SMEs performance are very limited. In this view, through extensive literature view, this study has found a theoretical link that exists between entrepreneurial orientation, market orientation and performance of SMEs and also developed conceptual model for empirical validations. This study serves not only to clarify the relationship between entrepreneurial orientation, market orientation and SMEs performance, it also explains the role which TQM plays as a mediator in this relationship which most studies have neglected. Again, the conceptual model also examines the moderation role of the organizational culture in the relationship between TQM and SMEs performance.

The relationship between TQM and SMEs’ performance

“…However, a review of the literature indicates several research gaps. Most of the empirical studies on TQM and OC–performance relationships have been conducted in large enterprises especially in developed countries, while few studies have been reported in developing countries (Sinha and Dhall, 2018; Ali et al , 2017; Ebrahimi and Sadeghi, 2013), and no such research has been undertaken in KSA. This includes manufacturing-based SMEs, considered a major driver of growth in the manufacturing sector of KSA.…”

“…In particular, there is a deep inherent need to investigate the association between TQM, culture and performance (Ebrahimi and Sadeghi, 2013). However, there is a lack of empirical studies examining the association between TQM and performance within the context of small and medium enterprises (SMEs), particularly in developing countries (Sahoo and Yadav, 2018; Ali et al , 2017; Ebrahimi and Sadeghi, 2013). This research addresses this case by examining the links among TQM, OC and SMEs’ performance.…”

Effect of entrepreneurial orientation, market orientation and total quality management on performance

“…However, the global performance benefits of these factors are questionable (Kober et al, 2012;Duarte et al, 2011;George, 2011;Morgan et al, 2009;Stam and Elfring, 2008) and remain inconspicuous on whether adopting EO, MO and TQM is suitable for all firms at all times. In particular, the empirical studies that examined the three constructs that may simultaneously affect business performance are limited (Ali et al, 2017;Cadogan, 2012;Hakala, 2011;Grinstein, 2008;Demirbag et al, 2006). The essential linkage of EO, MO, TQM and organisational performance in developed countries has received significant attention from practitioners and scholars (Rodr ıguez-Guti errez and Tejada, 2015;Herzallah et al., 2014;Brouthers et al, 2014;Laukkanen et al, 2013;Raju et al, 2011;Salaheldin, 2009).…”

A multilevel approach to competence management in innovative small and medium-sized enterprises (SMEs): literature review and research agenda

“…In innovative SMEs, most competence management studies deal with the organizational level (Hewitt-Dundas, 2006;Hervas-Oliver et al, 2016;Ali et al, 2017;Curado, 2018;Adla et al, 2020;Saunila, 2020). In particular, strategic management researchers agree that companies obtain and maintain their competitive advantage through their ability to renew and integrate their competences and develop new ones (Teece et al, 1997).…”

“…Some research has sought to improve the methodology for understanding and identifying the competences necessary for the development of innovative SMEs (Danneels, 2002;Belderbos et al, 2004;Trott, 2005), but, while such studies emphasized the importance of competences, they do not provide a multilevel approach. Instead, they focus on the individual level, with entrepreneurs' individual competences (Man et al, 2002;Edwards-Schachter et al, 2015;Hero et al, 2017), the team level, with entrepreneurial team collective competences (Ruiz-Jim enez and del Mar Fuentes-Fuentes, 2016) and the organization level, with SME organizational and inter-organizational competences (Hewitt-Dundas, 2006;Hervas-Oliver et al, 2016;Ali et al, 2017;Curado, 2018;Saunila, 2020). Studying interlevel dynamics is essential in identifying the role played by each level in the successful development of innovative SMEs and in highlighting the practices used to deploy competences in such businesses.…”