SmartPLS mediation moderation model: Integrated the entrepreneurial performance of textile-based small-medium enterprises

Abstract

The core purpose of this study is to explore the effects of knowledge management practices and the dynamic capabilities of entrepreneurs on the entrepreneurial performance of small-medium enterprises (SMEs). This study gathered the required information using a structured survey from textile-based small-medium enterprises and applied a structural equation model to analyze 486 valid responses from Pakistan. The empirical results show that knowledge management practices, such as knowledge sharing behavior, innovative capacity, and absorptive capacity, are significantly correlated with developing entrepreneurs’ dynamic capability, thus improving their performance. At the same time, this study also confirms that opportunity recognition positively affects the relationship between the dynamic capability and entrepreneurial performance of SMEs. In addition, the findings of this study guide business practitioners and policymakers in strategy formulation envisioned to encourage entrepreneurs who contribute to the country’s sustainable economic growth. This study contributes to the existing literature of knowledge management practices with knowledge sharing behavior, innovative capacity, absorptive capacity, and more intended to involve the role of opportunity recognition.