IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v14y2025i1d10.1186_s13731-025-00537-1.html
   My bibliography  Save this article

The effects of customer orientation and entrepreneurial orientation on SMEs performance: the mediating role of innovation capabilities. The methodological moderators’ comparative study

Author

Listed:
  • Aklilu Tukela Bekata

    (Hawassa University)

  • Chalchissa Amentie Kero

    (Jimma University)

Abstract

The main objective of this study is to investigate the significance of customer and entrepreneurial orientation for SMEs’ innovation capabilities and performance. This study used an explanatory research design and multi-stage sampling to gather primary data from Hawassa city in Ethiopia. The study applied structural equation modeling (SEM) to analyze the empirical data of 321 SMEs operating in the study area to verify the hypotheses of the proposed structural regression model. According to the SEM results, customer orientation and entrepreneurial orientation have a direct and beneficial impact on the performance of SMEs. This effect is more distinct for multi-item measures. Moreover, innovation capabilities partially mediate the relationships between customer orientation and entrepreneurial orientation and the performance of SMEs. The study makes a significant theoretical and practical contribution to the application of dynamic capabilities and resource-based theories in the context of SMEs. The findings contribute to the literature by demonstrating the significance of strategic insights in enhancing innovation capabilities and the performance of SMEs. By incorporating methodological moderators and comparing SMEs in different sectors and economic contexts, the study broadens its applicability and relevance. The findings provide empirical generalizations and highlight areas of inconsistency in the strategic orientation–performance casual effects.

Suggested Citation

  • Aklilu Tukela Bekata & Chalchissa Amentie Kero, 2025. "The effects of customer orientation and entrepreneurial orientation on SMEs performance: the mediating role of innovation capabilities. The methodological moderators’ comparative study," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-32, December.
  • Handle: RePEc:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00537-1
    DOI: 10.1186/s13731-025-00537-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-025-00537-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1186/s13731-025-00537-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00537-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.