Entrepreneurial orientation, total quality management, organisational learning and performance of SMEs in Nigeria : the moderating role of competitive intensity

Extant research addressing the relationships between entrepreneurial orientation, total quality management, organisational learning, and small and medium enterprises (SMEs) performance demonstrates inconsistency in results, suggesting the need to introduce a moderator variable. Drawing upon resource-based theory, as well as contingency theory, this study examined the role of competitive intensity in moderating the relationships between entrepreneurial orientation, total quality management, organisational learning, and SME performance. Using a stratified random sampling, 714 self-administered questionnaires were distributed to owner‐managers of SMEs operating in Kano and Kaduna in the north-west geopolitical zone of Nigeria. Of the 714 questionnaires distributed, 440 unusable questionnaires with 62 percent responses were returned and further analysed. The hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results supported the hypothesised main effects of entrepreneurial orientation, total quality management, and organisational learning on SME performance. Also, the competitive intensity was found to moderate the relationships between entrepreneurial orientation and SME performance. Similar results regarding the moderating effect of competitive intensity on the relationship between organisational learning and SME performance was found. On the contrary, no significant interaction effect was found between total quality management and competitive intensity. The theoretical contribution of the present study lies in its use of competitive intensity as a moderator of the relationships between entrepreneurial orientation, total quality management, organisational learning, and SME performance. From the practical perspective, the key contribution of this study is that SMEs in Nigeria may clearly appreciate the benefits of devoting greater attention to the implementation of entrepreneurial orientation, total quality management, and organisational learning to achieve a sustainable competitive advantage. Finally, the findings of this study can also provide directions to government and policy-makers toward promoting SMEs for sustainable development.