Conceptualizing Strategic Entrepreneurship and SMEs Performance Using the Resource-Based Theory
A Literature Review
Small and Medium Enterprises (SMEs) contribute significantly to socio-economic development of any country. Despite the contribution, poor performance of SMEs has been reported due to various constraints. Strategic entrepreneurship has been identified as one of the approaches that can be used to promote SMEs performance. We aimed at developing a conceptual model that describes the influence of strategic entrepreneurship on SMEs performance under the mediation of competitive advantage. Guided by the Resource-Based Theory, the synergy of the Resource-Based View and the Knowledge Based View, we adopted learning orientation, strategic resources management and entrepreneurial orientation as components of strategic entrepreneurship. Through integrative literature review approach, we developed the conceptual model, which depicts the direct and indirect influence of strategic entrepreneurship components on SMEs performance. Furthermore, the model depicts the mediating effect of competitive advantage on the relationships between strategic entrepreneurship components and SMEs performance. We have contributed to the existing literature through introduction of strategic resources management as a component of strategic entrepreneurship, introduction of direct and indirect influences of strategic entrepreneurship components on SMEs performance and introduction of competitive advantage as a mediating variable between strategic entrepreneurship and SMEs performance. We have recommended for the testing of the proposed model in future studies across different industries to obtain empirical evidence. This wouldresult to further theoretical and practical contributions to the existing knowledge.