Abasyn Journal of Social Sciences Vol (13), Issue (1), 2020

Individual Entrepreneurial Orientation, Access to Finance, and SME Performance: Fortifying Role of Entrepreneurial Alertness

Tehreem Fatima & Syed Ahmad Raza Bilal

Superior University, Lahore, Pakistan

Sohar University, Oman

The crucial factors deciding the performance of small and medium scale enterprises (SME) areamply discussed in the literature, however, the factors mediating and moderating this association are rarely addressed. To confiscate this discrepancy, we used individual entrepreneurial orientation (IEO) as a psychological construct deciding the SME performance. Moreover, the theory of action regulation is used and access to finance is deemed as a suitable action characteristic mediating the above relationship along with the moderating role of entrepreneurial alertness. Using cluster sampling to finalize 189 respondents, we found evidence that IEO and SME performance relationship is mediated by access to finance and the IEO and access to finance link amplify for alert SME owners. Our results are consistent with the action regulatory theory and lead important implications that without an arrangement of adequate capital, and owners psychological and responsive capabilities, the higher SME performance cannot be achieved. We offer important insights for SME owner-managers, training institutions and regulatory agencies.
Keywords: Pakistan-Malaysia Free Trade Agreement, Computable General Equilibrium Model, GTAP




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