Effect of Entrepreneurial Orientation Innovation Capabilities on SMEs Performance A Mediating Role of Differentiation Strategies

Abstract

Small and medium enterprises (SMEs) are known as the engine of economic growth They not only contributed to the economic growth significantly but also vitalized the pre-existing and stagnating competitor organizations SMEs are considered to play a momentous role by contributing to the economic growth of a nation particularly in context to creation of an enterprise that proves to be a source of income generation for countless households and individuals by opening job avenues The benefits of entrepreneurship are spread across the sectors and various types of organizations in an economy where it renders the most fruitful gains of productivity employment and economic growth in case of small and medium enterprises In present times competitive environment it is their orientation towards the enterprise which brings prosperity for the venture In order to meet the pace of development and dynamic behaviour of the business environment globally it is the orientation of the entrepreneurs their capability to innovate and ability to create differentiation will determine an economys future direction SMEs need to enhance performance by continuously changing and engaging themselves in embracing innovation capabilities and differentiation strategies Effective business strategies play a very crucial role and are compulsorily required for the very survival of the SMEs For endeavoring into entrepreneurial activities the entrepreneurs are required to develop orientation towards the business idea and its potentials Entrepreneurial orientation innovation capabilities and differentiation strategies plays an imperative role in moulding the behaviour of members of the organization by making them capable to deeply understand the individual level phenomenon that is vital for the organization in creating strategies that can provide sustainable development newlineThe entrepreneurial research has inclined towards studying the behavioural aspects and focuses on identifying the dimensions of entrepreneurial orientation affecting the firm performance whic