Impact of organizational innovation, learning orientation and entrepreneurship on SME performance: The moderating role of market turbulence and ICT

Abstract

The purpose of this study was to determine the effect of organizational innovation (OI), learning orientation (LO) and entrepreneurship on small and medium-sized enterprise (SME) performance considering the moderating role of market turbulence and ICT. The statistical population was all active SMEs in Rasht industrial park (193 companies). SPSS Sample Power software was used to calculate the optimum sample size and the lowest optimum sample size was 85. Simple random sampling was carried out using SPSS 22. Field data was collected by questionnaire. A five-point Likert scale was used for the responses to the questionnaire. The reliability and validity was confirmed. Before testing the hypotheses, outlier data and FIMIX were analyzed to ensure the homogeneity of community-level variance. To assess the measurement and structural models and test the hypothesis, PLS-SEM in SmartPLS3 was used. The results show that both OI and LO have a positive effect on entrepreneurship, but have no effect on SME performance considering the mediating role of entrepreneurship. The findings illustrate that an increase in market turbulence decreased the impact of innovation, LO and entrepreneurship on SME performance. On the other hand, an increase in ICT was found to increase the effect of innovation, LO and entrepreneurship on SME performance.