MODERATING EFFECT OF ENTREPRENEURIAL ORIENTATION ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL COMPETENCY AND SME’S PERFORMANCE IN KADUNA METROPOLIS

Abstract

This study investigates EO as the moderator of the effect of entrepreneurial competencies,
knowledge, skills, and attitudes on SMEs’ performance in Kaduna metropolis, Nigeria. From
a cross-sectional survey research design, the authors administered structured questionnaires
to 493 SME owner-managers and utilized Partial Least Squares Structural Equation
Modeling (PLS-SEM) analysis. This study established that the three constructs of
entrepreneurial knowledge, skills, and attitudes have significant and positive effects on SME
performance. The moderation analysis reveals that EO significantly enhances the direct
positive association between enterprising skills and SME performance; however, EO did not
enhance a similar impact for the relationship between entrepreneurial knowledge and SME
performance or that of entrepreneurial attitudes. The R² of 0.731 indicates a high model
reliability, and thus emphasizes the relevance of entrepreneurial competencies on SMEs
performance. Moreover, Importance-Performance Map Analysis categorises entrepreneurial
attitude as the most important attribute where improvement can be made intentionally. The
studies provide managerial and policy implications for SME managers and policymakers, a
call to appropriately target the development of entrepreneurship and EO-based initiatives to
enhance competitive advantage and future stability.