Entrepreneurial orientation, market orientation, total quality management and organizational culture on performance of SMEs

The objective of this study is to empirically examine the effects of Entrepreneurial Orientation (EO) and Market orientation (MO) on the performance of Small and Medium Enterprises (SMEs) in the Kingdom of Saudi Arabia. Additionally, this study also examines the mediation effect of Total Quality Management (TQM) on the relationship between EO, MO, and performance. At the same time, it also investigates the moderating effect of organizational culture (OC) on the relationships between TQM and performance. The theoretical framework was developed based on extant literature regarding EO and MO. The data of the study were collected using a survey method whereby a total of 722 questionnaires were distributed to SMEs' managers/owners but only 364 questionnaires were used for further analysis. This study utilizes the Partial Least Squares Structural Equation Modelling (PLS-SEM) to establish the validity and reliability of the measurement model and to test the study's hypotheses. The results provide empirical support for most of the hypothesized relationships. Specifically, EO and TQM predicted a direct significant and positive relationship with performance while MO was not found to be a predictor of SMEs' performance. Additionally, EO and MO are significantly and positively related to TQM. More importantly, the results indicate that TQM plays a mediating role on the relationship between EO, MO, and SMEs' performance. Meanwhile, the study also revealed that OC has a significant and negative moderating effect on the relationship between TQM and performance. Furthermore, the research outcome equally provides significant contributions to both managers and researchers to further understand the effects of EO, MO, TQM, and OC on performance. It also revealed that various theories such as RBV, contingency theory, and industrial organization theory can be used to improve SMEs' performance. Finally, the study's contributions, limitations, implications and suggestions for future research were discussed.