Unveiling the strategic factors that influence small and medium-sized enterprises’ performance

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Abstract

This research aims to study the influence of entrepreneurial orientation (EO), knowledge management (KM), and small and medium-sized enterprises (SMEs) performance and seeks to identify the moderation effect of organizational trust (OT) on these relationships. The study empirically examines the conceptual model using a sample of 210 SMEs, using a close-ended self-administered questionnaire. The result indicates a positive direct relationship between EO, KM, and performance. Moreover, OT moderates the relationship between EO, KM, and SME performance. This study has provided some empirical evidence for the importance EO practices (innovativeness, proactiveness, and risk-taking) and KM (knowledge sharing, acquisition, and application) to improve SMEs performance and create a competitive advantage (Abdelwahed & Alshaikhmubarak, 2023; Giampaoli et al., 2017). Furthermore, this study affords insights for SME owners/managers to support initiatives and innovation practices. Policymakers, on the other hand, should reinforce trust and facilitate access to sharing and implementing knowledge and creative ideas for the benefit of firms.

Keywords: Entrepreneurial Orientation, Knowledge Management, Organizational Trust, SME Performance, RBV Theory, KBV Theory

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: L1, L25, M1, M13

Received: 05.03.2024
Revised: 22.06.2024; 25.10.2024; 04.03.2025
Accepted: 27.03.2025
Published online: 31.03.2025

How to cite this paper: Larabi, C. (2025). Unveiling the strategic factors that influence small and medium-sized enterprises’ performance. Corporate & Business Strategy Review, 6(2), 19–29. https://doi.org/10.22495/cbsrv6i2art2