Unleashing potential for SMEs in resource-constrained economies through decision making practice: the mediating role of organisational learning and IT adoption

Managers and owners of small and medium enterprises (SMEs) invest in their competencies, organisational learning and utilising information technology to promote their businesses. Covering this aspect in the context of lower income countries is lacking in the literature. Moreover, research is scant regarding the role of organisational learning and utilising information technology in facilitating the effect of decision making practices (DMPs) on SMEs performance. The current study fills this gap by exploring the aspect of manufacturing SMEs in Yemen as a lower income economy. By relying on cross-sectional design and primary data collected conveniently from 400 SMEs managers/owners in Yemen, the findings confirm a significant and positive direct effect of adopting DMPs on SMEs performance, and this effect is significantly mediated by utilising information technology and not by organisational learning. The results also show a direct effect of entrepreneurial competencies on SMEs performance. The implications and future directions of this study's findings are discussed.