Driving Technological in Kurdistan's SMEs : Examining The Synergy of Entrepreneurial Orientation, Social Capital and Absorptive Capacity

Technological innovation capabilities in small and medium enterprises (SMEs) in the industrial sector are crucial for addressing intense competition, fulfilling customers' needs, and fostering countries' economic growth. This study examines the relationships between entrepreneurial orientation (EO), absorptive capacity (ACAP), social capital (SC), and technological innovation among industrial SMEs in the Kurdistan Region of Iraq. A survey questionnaire was completed by 340 industrial SME owners in the Kurdistan region of Iraq. This study utilized partial least squaresstructural equation modelling (PLS-SEM) to test the hypothesized relationships. The results reveal that EO, ACAP, and SC significantly influence technological innovation in industrial SMEs of the Kurdistan Region of Iraq. Among these, EO is the strongest predictor of technological innovation. Innovation performance can be improved to increase business performance by strengthening EO, ACAP, and SC. This study offers new insights and contributes to the existing body of knowledge by applying the resource-based view (RBV) theory as an underpinning theory in the proposed research framework, tested in industrial SMEs of the Kurdistan Region of Iraq. This research empirically confirms that EO, ACAP, and SC are vital in boosting technological innovation in industrial SMEs of the Kurdistan Region of Iraq. Top management in SMEs should promote partnering as a key strategy to tackle financial obstacles and optimize opportunities for driving business growth through innovation. By nurturing a partnership-oriented mentality, they can expand viewpoints, enhance organizational awareness, and develop a deeper understanding of future market trends and technological progress. This collective endeavor will strengthen the SMEs' capacity to innovate technologically and improve their overall capabilities