Moderating effects of Dynamic business environment on the relationship of Entrepreneurial Orientation and Financial Performance of SMEs (original) (raw)

Textile sector having high importance in Pakistani economy, Due to its high portion in total exports of Pakistan which is decreasing in in last five years (Economic survey of Pakistan). Main objective of the study was to test moderating effects of dynamic business environment on the relationship of entrepreneurial orientation and financial performance of textile SMEs of Pakistan. Data was collected through self-administrated questioner from textile SMEs of Pakistan, cross-sectional approach was used. The study applied quantitative analysis techniques to obtain statistical results. Through PLS-SEM applying as statistical results of relationships study found that entrepreneurial orientation has positive and significant effects on financial performance of SMEs, also moderating hypothesis was positively accepted. This study confirms the proposed moderation of dynamic business environment on the relationship of entrepreneurial orientation and financial performance of SME.