Moderating effect of access to finance on total quality management, market orientation, entrepreneurial orientation of small and medium entreprises performance in Nigeria

Past literature reported a mixed influence of total quality management, market orientation, entrepreneurial orientation, and performance of small and medium enterprises (SMEs). Thus, suggesting the need for the incorporation and testing of the effect of a moderating variable due to the inconsistency in the research findings. To address this theoretical gap, the present study used resource-based view and pecking order theory to examine the moderating role of access to finance on the relationships between total quality management, market orientation, entrepreneurial orientation, and SME performance. The study employed stratified random sampling and self-administered questionnaire techniques in collecting data from SMEs operating in the Kano, Kaduna, and Sokoto states in the north-west geopolitical zone of Nigeria. Based on the response rate of 302 questionnaires, hypotheses were tested using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings of the study showed that total quality management, market orientation, and entrepreneurial orientation were significant predictors of SME performance. The results of the study also indicated that access to finance moderated the relationship between total quality management and SME performance. Also, access to finance moderated the relationship between market orientation and SME performance. A similar result was also found for the relationship between entrepreneurial orientation and SME performance. The study may benefit SME owners/managers, small and medium enterprises development agency of Nigeria (SMEDAN), manufacturers association of Nigeria (MAN), as well as governments at various levels. The study may also serve as a reference for future studies. Finally, the limitations, implications, and suggestions for future research are discussed.