The Performance of Small and Medium Sized Enterprises (SMEs) in Punjab: A Moderating Role of Corporate Image

Abstract

The main purpose of this study is to check the factors affecting the performance of Small and Medium Sized Enterprises (SMEs) in Punjab. These factors include quality certification, open innovation, organizational culture and corporate philanthropy. Moreover, to check the moderating effect of corporate image between corporate philanthropy and SMEs’ performance. Quantitative research approach is used in this study because it is based on primary quantitative data which is collected by adapted questionnaire. Managerial level employees of SMEs located in Lahore were selected as population. Simple Random Sampling technique was used to collect data. Reliability and validity of model was checked and hypotheses were tested by using SMART PLS-SEM. The results of this study revealed that quality certification, open innovation, organizational culture and corporate philanthropy positively and significantly related to SMEs’ performance. Moreover, moderating variable, corporate image significantly moderates the relationship between corporate philanthropy and SMEs’ performance. Above mentioned practices play key role in boosting the performance of SMEs in Punjab, Pakistan. The results of this study are significant for the strategists, policy makers, managers and owners of SMEs located in Punjab, Pakistan or elsewhere. Results suggested them to incorporate such practices for enhancing their businesses’ performance. It will ultimately enhance the contribution of SMEs in the growth of economy.