How Total Quality Management Stimulates the Relationship between Entrepreneurial Orientation and SMEs Performance: The Case of Pakistan

Abstract

This study has the aim to know the impact of entrepreneurial orientation (EO) on the performance of small and medium enterprises (SMEs) under the mediating effect of total quality management (TQM). This study has targeted the Small and Medium Industry of Pakistan to know about the effect of entrepreneurial orientation and TQM on performance of the SMEs. Total 242 participants were involved in this study, for whom data has been collected for analysis. Hayes's process macro has been utilized for hypotheses testing analysis. The results of this study showed the positive and significant impact of entrepreneurial orientation on performance of the SMEs, and that the TQM positively and significantly mediated between Entrepreneurial orientation and performance of the SMEs. This study has significantly enhanced the understanding level towards the SMEs for the young entrepreneurs. In future perspective, this study lacks in focusing on the external environment or forces which may cause harm to the performance of SMEs. So, this aspect can be utilized to enhance the work and in addition to this, Innovation can be used as a moderator to see its effect on the relationship between TQM and SME’s Performance.