Action Characteristics as a Bridge in Individual Entrepreneurial Orientation and SME Success Pathway

Abstract

In contrast to the much examined external factors as determinants of SME success, the present study brought focus on the entrepreneurial psychological context. This research examines the impact of individual entrepreneurial orientation on the success of SMEs in Pakistan. Moreover, this study emphasize the role of ‘action’ as a linking bridge to psychological factors and entrepreneurial outcomes, through the role of action characteristics (access to finance, social network, exploration activities, and response performance). Based on 182 responses obtained through a stratified sample of manufacturing SMEs, multiple mediation analysis was used to test the mediation. The results indicated that individual entrepreneurial orientation had a positive impact on SMEs success and all the action characteristics (access to finance, social network, exploration activities, and response performance) mediate this relationship. The study theoretically contributes to emotive perspective, action regulation theory and orientation-action-outcome perspective and offers implications for SME owners, SMEDA and training professionals.