STRATEGIC ROLE OF ENTREPRENEURIAL ORIENTATION IN ENHANCING THE PERFORMANCE OF MULTI-ROLE SME OWNERS

Abstract

Despite extensive research on entrepreneurial orientation (EO), limited studies have examined its impact on multi-role SME owners navigating dynamic digital markets. This study addresses this gap by investigating how EO dimensions innovativeness, proactiveness, and risk taking affect SME performance. Data were collected from 114 SME owners using structured surveys and analyzed through PLS-SEM, after confirming the validity and reliability of all measurement constructs. The findings reveal that all EO dimensions have positive and significant effects on SME performance, highlighting the critical role of innovation, proactive market strategies, and calculated risk-taking in achieving superior business outcomes. The model demonstrated moderate explanatory power and strong predictive relevance. These results contribute theoretically by reinforcing EO theory in the context of multi-role entrepreneurs and practically by suggesting that SME owners should actively cultivate entrepreneurial behaviors to maintain competitiveness and resilience in digital economies. The study is limited by sample size, cross-sectional design, and focus on three EO dimensions, indicating opportunities for future research to expand scope, employ longitudinal methods, and include additional factors such as digital capabilities and innovation ecosystems. Overall, this research underscores the strategic importance of EO in enhancing SME performance in increasingly complex and competitive markets.