Factors influence SMEs performance in Algeria: organizational climate as a moderator

The main objective of this study was to investigate the influence of determinants of entrepreneurial orientation, innovation capability, strategic improvisation, and organisational climate on the performance of food and beverage small and medium enterprises (SMEs). The investigation was prompted by the disparate findings and gaps in the current literature. First, there were inconsistent findings between entrepreneurial orientation, innovation capability, strategic improvisation, organisational climate, and SMEs performance relationships. Second, there has been very little research on the moderating influence on the relationships between these three factors of the current study and performance, particularly in Algeria. Data was obtained among 160 owners and managers from SMEs operating in Algiers, the capital of Algeria, in the food and beverage industry via a purposive sampling technique. The results of the Partial Least Square Structural Equation Modelling (PLS-SEM) method demonstrated that entrepreneurial orientations, innovative capability, and strategic improvisation are positively related to SME performance in the Algerian food and beverage industries. This study was examined the moderating
effect of organisational climates on the relationship between entrepreneurial orientation, innovation capability, strategic improvisation, and SMEs performance. However, organisational climate only moderated between entrepreneurial orientation
and SME performance. The limitations of the study were acknowledged, as were recommendations for further research