Paper #3

Managing Organizational performance of pharmaceutical SMEs in Indonesia: Examining the Role of Entrepreneurial Orientation and Organizational Learning in a Mediated Model

Saeed Abbas Shah, Muzafar Hussain Shah, Sheema Matloob and Syed Iradat Abbas

Abstract: The theme of the current research is to assess the link between entrepreneurial orientation, organizational learning with organizational performance using structural equation modeling. The current work was based on a quantitative approach using cross-sectional survey methodology. The study examined the effect of entrepreneurial orientation (EO) on organizational learning (OL), organizational performance (OP), and of organizational learning (OL) on organizational performance (OP). Moreover, the study also examined the mediating effect of organizational learning (OL) in the relationship between entrepreneurial orientation (EO), and organizational performance (OP). Data were collected from managers and owners of manufacturing pharmaceutical SMEs in Indonesia. A sample of 340 was selected by using the purposive sampling technique. The results support in current empirical model confirming all the direct hypothesized relationships. The study results also revealed mediation of organizational learning in the entrepreneurial orientation and organizational performance relationship. Considering the association of the factors studied in the current research, the authors imply managers, owners to develop a learning-oriented environment. The implication sections provide further details based on the results.

Keywords: Entrepreneurial orientation; organizational learning; organizational performance; SMEs Indonesia.