The Relationship Between Entrepreneurial Competencies and Firm Performance in SME’s: A Literature Review Shedding Light on The Field

Year 2023, Volume: 7 Issue: 12, 29 - 55, 24.08.2023

Nazlı Yüceol , Esin Can

https://doi.org/10.55775/ijemi.1199906

Abstract

This study presents a literature review regarding the relationship between entrepreneurial competence and firm performance using Web of Science and Scopus databases. It is anticipated that the study will provide benefits to academics and business professionals. Academically, an overview of the relationship between the concepts is provided and a roadmap is created for future studies. For business professionals, inferences are made in order to develop entrepreneurial competencies and increase the performance of firm. In the study, 40 studies examining the relationship between entrepreneurial competence and firm performance in SMEs through Web of Science and Scopus databases are discussed through literature review. Within the scope of the study, articles written in the field of business and management are evaluated. As keywords in search; “entrepreneurial competence”, “entrepreneurial competencies”, “performance”, “firm performance”, “business success” are used. ESCI, SSCI, SCI-Expanded and BKCI-SSH indices are included in the scan and the results are evaluated.

Keywords

SMEs, Entrepreneurial Competencies, Firm Performance, Business Success, Literature review

KOBİ’lerde Girişimcilik Yetkinliği ve Firma Performansı İlişkisi: Alana Işık Tutan Bir Literatür İncelemesi

Abstract

Bu çalışmada Web of Science ve Scopus veri tabanları üzerinden girişimcilik yetkinliği ve firma performansı ilişkisi üzerine yapılmış olan akademik çalışmalar literatür incelemesi yöntemi ile ele alınmıştır. Çalışmanın akademik ve iş hayatı açısından fayda sağlayacağı öngörülmektedir. Akademik olarak kavramlar arasındaki ilişkiye genel bir bakış sağlanmış ve ileride yapılacak çalışmalara yol haritası oluşturulmuş, çalışma hayatı için ise girişimcilik yetkinliklerinin geliştirilmesi ve firma performansının artırılabilmesi adına çıkarımlarda bulunulmuştur. Çalışma kapsamında Web of Science ve Scopus veri tabanları üzerinden ESCI, SSCI, SCI-Expanded ve BKCI-SSH indekslerinde yer alan işletme ve yönetim alanında kaleme alınmış KOBİ’lerde girişimcilik yetkinliği ve firma performansı ilişkisinin incelendiği 40 çalışma, literatür incelemesi yoluyla değerlendirilmiştir. Aramada anahtar kelimeler olarak; “girişimci yetkinlik”, “girişimcilik yetkinliği”, “girişimcilik yetkinlikleri”, “performans”, “firma performansı”, “işletme başarısı” ve “iş başarısı” kelimeleri kullanılmıştır.

Keywords

KOBİ, Girişimcilik Yetkinlikleri, Firma Performansı, İş Başarısı, Literatür incelemesi

References

• Abdullah Al Mamun, S. A. (2019). Effect of entrepreneurial orientation on competency and micro-enterprise performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. doi:DOI 10.1108/APJIE-05-2018-0033
• Ahmad, N., Ramayah, T., Wilson, C., & Kummerow, L. (2010). Is entrepreneurial competency and business success relationship contingent upon business environment? A study of Malaysian SMEs. International Journal of Entrepreneurial Behavior & Research, 16(3), 182-203. doi:DOI 10.1108/13552551011042780
• Ahmad, S. Z., Rani, N. S., & Kassim, S. K. (2010). Business challenges and strategies for development of Small- and Medium-sized Enterprises (SMEs) in Malaysia. International Journal of Business Competition and Growth, 1(2), 177-197.
• Alvarez, S. A., & Busenitz, L. W. (2001). The entrepreneurship of resource-based theory. Journal of Management, 27, 755–775. doi:DOI: 10.1177/014920630102700609
• Bacigalupo, M., Kampylis, P., Punie, Y., & Brande, G. V. (2016). EntreComp: The Entrepreneurship Competence Framework. Seville, Spain. Retrieved 07 21, 2022, from https://core.ac.uk/download/pdf/38632642.pdf
• Bird, B. (1995). Towards a theory of entrepreneurial competency. Advances in Entrepreneurship, Firm Emergence and Growth(21), 51‐72.
• Boyatzis, R. E. (1983). The Competent Manager: A Model For Effective Performance. Strategic Management Journal, 4(4), 385-387. Boyatzis, R. E. (2008). Competencies in the 21st century. Journal of Management Development, 27(1), 5-12. doi:DOI 10.1108/02621710810840730
• Churchill, N. C., & Lewis, V. L. (1983). The Five Stages of Small Business Growth. Harvard Business Review, 61(3), 1-12. Covin, J. G., & Miles, M. P. (1999). Corporate Entrepreneurship and the Pursuit of Competitive Advantage. Entrepreneurship Theory and Practice, 1(1). doi:https://doi.org/10.1177/1042258799023003047
• Dar, M. S., Ahmed, S., & Raziq, A. (2017). Small and medium-size enterprises in Pakistan: Definition and critical issues. Pakistan Business Review, 19(1), 46–70. doi:https://doi.org/10.22555/pbr.v19i1.1245
• Dawa, S., Namatovu, R., Mulira, F., Kyejjusa, S., Arinaitwe, M., & Arinaitwe, A. (2021). Entrepreneurial competences and growth of female-owned enterprises: the mediation role of absorptive capacity. In ternational Journal of Gender and Entrepreneurship, 13(1), 30-49. doi:DOI 10.1108/IJGE-02-2020-0028 Demirci, A. (2014). Literatür Taraması. In E. Y. Arı, & İ. Kaya, Araştırma Yöntemleri. Coğrafyacılar Derneği. Retrieved 05 18, 2022, from file:///C:/Users/nyuceol/Downloads/3_Literaturtaramasi.pdf
• Doğan, H. (2004). Yetenek Tabanlı Stratejilerin Yükselişi: Kavramsal Bir Analiz Çalışması. Gazi University Journal of Faculty of Economics and Administrative Sciences, 6(3), 133 - 151.
• Feurer, R., & Chaharbaghi, K. (1994). Defining competitiveness: a holistic approach. Management decision, 32(2), 49-58. doi: https://doi.org/10.1108/00251749410054819
• Gerli, F., Gubitta, P., & Tognazzo, A. (2011). Entrepreneurial competencies and firm performance: an empirical study. In P. p. Management (Ed.), Paper presented at VIII International Workshop on Human Resource Management, (pp. 1-40). Retrieved 08 05, 2022, from https://www.researchgate.net/profile/Paolo- Gubitta/publication/228314296_Entrepreneurial_Competencies_and_Firm_Performance_An_Empirical_Study/links/00463526e019fdfeb9000000/Entrepreneurial-Competencies-and-Firm-Performance-An-Empirical-Study.pdf
• Grimmer, L., Miles, M. P., Byrom, J., & Grimmer, M. (2017). The impact of resources and strategic orientation on small retail firm performance. Journal of Small Business Management, 55(s1), 7-26. doi: https://doi.org/10.1111/jsbm.12368
• Gümüsay, A. A., & Bohné, T. M. (2018). Individual and organizational inhibitors to the development of entrepreneurial competencies in universities. Research Policy, 47(2), 363-378. doi:https://doi.org/10.1016/j.respol.2017.11.008
• Hallam, C. D. (2018). Culture and social capital network effects on the survival and performance of high-tech micro and small firms. Journal of Small Business and Enterprise Development, 25(1), 81-106. doi:https://doi.org
• Hwang, W.-S., Choi, H., & Shin, J. (2020). A mediating role of innovation capability between entrepreneurial competencies and competitive advantage. Technology Analysis & Strategic Management, 32(1), 1-14. doi:https://doi.org/10.1080/09537325.2019.1632430
• Ibidunni, A. S., Ogundan, O. M., & Okonkwo, A. (2021). Entrepreneurial Competencies and the Performance of Informal SMEs: The Contingent Role of Business Environment. Journal of African Business, 22(4), 468-490. doi:https://doi.org/10.1080/15228916.2021.1874784
• Ibidunni, A. S., Ogundana, O. M., & Okonkwo, A. (2021). Entrepreneurial Competencies and the Performance of Informal SMEs: The Contingent Role of Business Environment. Journal of African Business, 22(4), 468–490. doi:doi.org/10.1080/15228916.2021.1874784
• Idris, M. M., & Abu Bakar, S. b. (2020). Perceived Usefulness of Business Coaching on the Relationship between Entrepreneurial Competencies and Business Success. The Journal of Asian Finance, Economics and Business, 7(10), 329-338.
• Kadam, R., Rao, S., Abdul, W. K., & Jabeen, S. S. (2019). Impact of cultural intelligence on SME performance: The mediating effect of entrepreneurial orientation. Journal of Organizational Effectiveness: People and Performance, 6(3), 161-185. doi:DOI 10.1108/JOEPP-12-2018-0101
• Khalid, S., & Bhatti, K. (2015). Entrepreneurial competence in managing partnerships and partnership knowledge exchange: Impact on performance differences in export expansion stages. Journal of World Business, 50(3), 598-608. doi:http://dx.doi.org/10.1016/j.jwb.2015.01.002
• Khan, M. A., Zubair, S. S., Rathore, K., Ijaz, M., Khalil, S., Khalil, M., & Rahimi, I. (2021). Impact of Entrepreneurial Orientation Dimensions on Performance of Small Enterprises: Do Entrepreneurial Competencies Matter? Cogent Business & Management, 8(1). doi:https://doi.org/10.1080/23311975.2021.1943241
• Kiwala, Y., Oliver, J., & Kintu, I. (2021). Entrepreneurial competence and supply chain value creation in local procurement. Development Southern Africa, 38(3), 423-436. doi:https://doi.org/10.1080/0376835X.2020.1855117
• Koçyiğit, N., & Çelik, A. (2021). Girişimcilik Yetkinliklerinin İşletme Performansına Etkileri. Turkish Studies - Social Sciences, 1127-1145. doi:DOI: 10.47356/TurkishStudies.46627
• Korsakiene, R., & Diskiene, D. (2015). Do competencies of entrepreneurs and managers influence internationalization processes? Investigation of Lithuanian SMEs. Proceedings of the European Conference on Innovation and Entrepreneurship, ECIE. Genoa: Univerty of Genoa.
• Kraja, Y. B., & Osmani, E. (2015). Importance of External and Internal Environment In Creation of Competitive Advantage To Smes.(Case Of Smes, In The Northern Region Of Albania). uropean Scientific Journal, 11(13).
• Krasniqi, B., & Branch, D. (2020). Institutions and firm growth in a transitional and post-conflict economy of Kosovo. Journal of Entrepreneurship in Emerging Economies, 12(2), 187-204. doi:DOI 10.1108/JEEE-05-2017-0034
• Lee, D. Y., & Tsang, E. W. (2001). The effects of entrepreneurial personality, background and network activities on venture growth. Journal of Management Studies, 38(4), 583-602.
• Lerner, M., & Almor, T. (2002). Relationships among Strategic Capabilities and the Performance of Women‐Owned Small Ventures. Journal of Small Business Management, 40(2), 109-125. doi:https://doi.org/10.1111/1540-627X.00044
• Machado, H. P., Cazella, C. F., Piekas, A. A., & Carvalho, C. E. (2021). Entrepreneurship and Strategy: Analyzing Themes from Bibliometric Studies in the Light of the Concept of Strategic Entrepreneurship. Brazilian Administration Review, 18(3). doi: https://doi.org/10.1590/1807-7692bar2021200036
• Madichie, N. O. (2009). Breaking the Glass Ceiling in Nigeria: A Review of Women's Entrepreneurship. Journal of African Business, 10(1), 51-66. doi: https://doi.org/10.1080/15228910802701361
• Mamun, A. A., & Fazal, S. A. (2018). Effect of entrepreneurial orientation on competency and micro-enterprise performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. doi:DOI 10.1108/APJIE-05-2018-0033
• Mamun, A. A., & Fazal, S. A. (2019). Effect of entrepreneurial orientation on competency and micro-enterprise performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 379-398. doi:DOI 10.1108/APJIE-05-2018-0033
• Mamun, A. A., & Fazal, S. A. (2021). Entrepreneurial Traits, Competency, Performance, and Sustainability of Micro-Enterprises in Kelantan, Malaysia. International Journal of Asian Business and Information Management, 12(3), 381-404. doi:DOI: 10.4018/IJABIM.20210701.oa23
• Mamun, A. A., & Lumpur, K. (2021). (Entrepreneurial Traits, Competency, Performance, and Sustainability of Micro-Enterprises in Kelantan, Malaysia. International Journal of Asian Business and Information Management, 12(3), 381-404. doi:DOI: 10.4018/IJABIM.20210701.oa23
• Mamun, A. A., Nawi, N. B., Permarupan, P. Y., & Muniady, R. (2018). Sources of competitive advantage for Malaysian micro-enterprises. Journal of Entrepreneurship in Emerging Economies, 10(2), 191-216. doi:DOI 10.1108/JEEE-05-2017-0037
• Manolova, T. S., Carter, N. M., Manev, I. M., & Gyoshev, B. S. (2007). The differential effect of men and women entrepreneurs' human capital and networking on growth expectancies in Bulgaria. Entrepreneurship Theory and Practice, 31(3), 407-426. doi:https://doi.org/10.1111/j.1540-6520.2007.00180.x
• Martins, I. (2016). Network usage, entrepreneurial orientation and their effectiveness on SMEs growth. The Journal of Entrepreneurship, 25(1), 18-41.
• Minai, M. S., Raza, S., Hashim, N. A., Zain, A. Y., & Tariq, T. A. (2018). Linking Entrepreneurial Education With Firm Performance Through Entrepreneurial Competencies: A Proposed Conceptual Framework. Journal of Entrepreneurship Education, 21(4).
• Mitchelmore, S., & Rowley, J. (2010). Entrepreneurial competencies: a literature review and development agenda. 16(2), 92-111. doi:DOI 10.1108/13552551011026995
• Mitchelmore, S., & Rowley, J. (2013). Entrepreneurial competencies of women entrepreneurs pursuing business growth. Journal of Small Business and Enterprise Development, 20(1), 125-142. doi:https://doi.org/10.1108/14626001311298448
• Mustapha, W. N., Mamun, A. A., Mansori, S., & Balasubramaniam, S. (2020). Effect of entrepreneurial competencies on micro-enterprises income and assets in Malaysia. Asia Pacific Journal of Innovation and Entrepreneurship, 14(3), 249-261. doi:DOI 10.1108/APJIE-01-2020-0009
• N.Chandler, G., & H.Hanks, S. (1993). Measuring the performance of emerging businesses: a validation study. Journal of Business Venturing, 8(5), 391-408.
• Namatovu, R., & Dawa, S. (2017). Motivation, competences and the moderating role of business discontinuance on the entrepreneurial effect of self-employment. International Journal of Entrepreneurship and Small Business, 30(3), 410-426.
• Ng, H. S., Kee, D. M., & Ramayah, T. (2017). The role of transformations leadership, entrepreneurial competence and technical competence on enterprise success of owner-managed SMEs. Journal of General Management, 42(1). doi:https://doi.org/10.1177/030630701604200103
• Ogundana, O. (2020). Obstacles facing women-owned enterprises: a case for Sub-Sahara African women. World Review of Entrepreneurship, Management and Sustainable Development.
• Osman, C. A., & Rahim, H. L. (2014). The Relationship of Entrepreneurial Competencies and Entrepreneurial Intention of. Australian Journal of Basic and Applied Sciences, 8(23), 62-69.
• Parida, V., Pesämaa, O., Wincent, J., & Westerberg, M. (2017). Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship. Entrepreneurship and Regional Development, 29(1/2), 94-115. doi:https://doi.org/10.1080/08985626.2016.1255434
• Pranowa, A. S., Sutrisno, J., Sulastiono, P., & Siregar, Z. M. (2020). The Entrepreneurial Competency, Innovation Capability, and Business Success: The Case of Footwear Industry in Indonesia. GENERAL MANAGEMENT, 21(78).
• Rahman, S. A., Amran, A., Ahmad, N. H., & Taghizadeh, S. K. (2015). Supporting entrepreneurial business success at the base of pyramid through entrepreneurial competencies. Management Decision, 53(6).
• Rauch, A., & Rijsdijk, S. A. (2013). The effects of general and specific human capital on long-term growth and failure of newly founded businesses. Entrepreneurship Theory and Practice, 3(4), 923-941. doi:https://doi.org/10.1111/j.1540-6520.2011.00487.x
• Reinartz, W. J., Echambadi, R., & Chin, W. W. (2002). Generating Non-normal Data for Simulation of Structural Equation Models Using Mattson's Method. Multivariate Behavioral Research, 37(2), 227-244. doi:https://doi.org/10.1207/S15327906MBR3702_03
• Rosli, N. F., & Abdullah, N. (2015). Comparative study on the determinants on SMEs performances in Selangor and Sabah, Malaysia. Handbook on the Emerging Trends in Scientific Research(3), 107-111.
• Sallah, C. A., & Caesar, L. D. (2022). Performance of Ghanaian women businesses community: the moderating role of social competence. Journal of Enterprising Communities-People and Places In The Global Economy, 16(3), 450-471. doi:DOI 10.1108/JEC-12-2020-0209
• Shane, S., & Venkataraman, S. (2000). The Promise of Entrepreneurship as a Field of Research. Academy of Management Journal, 25(1), 217-226.
• Song, Y., D. R., Srivastava, M. K., & Asgari, E. (2018). In search of precision in absorptive capacity research: a synthesis of the literature and consolidation of findings. Journal of Management, 44(6), 2343-2374. doi:https://doi.org/10.1177/0149206318773861
• Taipale-Eravala, K., Lampela, H., & Heilmann, P. (2015). Survival Skills in SMEs—Continuous Competence Renewing and Opportunity Scanning. Journal of East-West Business, 21(1). doi:https://doi.org/10.1080/10669868.2014.959232
• Tehseen, S., & Anderson, A. R. (2020). Cultures and entrepreneurial competencies; ethnic propensities and performance in Malaysia. Journal of Entrepreneurship in Emerging Economies, 12(5), 643-666. doi:DOI 10.1108/JEEE-10-2019-0156
• Tehseen, S., Ahmed, F. U., Qureshi, Z. H., Uddin, M. J., & T., R. (2019). Entrepreneurial competencies and SMEs’ growth: the mediating role of network competence. Asia-Pacific Journal of Business Administration, 11(1).
• Tehseen, S., Ahmed, F. U., Qureshi, Z. H., Uddin, M. J., & T., R. (2019). Entrepreneurial competencies and SMEs’ growth: the mediating role of network competence. Asia-Pacific Journal of Business Administration, 11(1), 2-29. doi:10.1108/APJBA-05-2018-0084
• Thomas, G. H., Douglas, E. J., Yamada, J.-I., & Senyard, J. (2021). A systematic bibliometric review of the strategic entrepreneurship domain. Management Research Review. doi:DOI 10.1108/MRR-11-2020-0709
• Tsai, K.-H., Chang, H.-C., & Peng, C.-Y. (2016). Refining the linkage between perceived capability and entrepreneurial intention: roles of perceived opportunity, fear of failure, and gender. International Entrepreneurship and Management Journal, 12(4), 1127–1145.
• Tunberg, M., & Anderson, A. R. (2020). Tunberg, M. and Anderson, A.R. (2020), “Growing a small firm; experiences and managing difficult processes”,. International Entrepreneurship and Management Journal volume, 16, 1445–1463.
• Urfa, A. M., & Arslantaş, C. C. (2022). Uluslararası Girişimsel Yönelim Üzerine Eleştirel Bir Literatür İncelemesi. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 22(1), 181-208.
• West, G. P., & Noel, T. W. (2009). The impact of knowledge resources on new venture performance. Journal of Small Business Management, 47(1), 1-22.
• Wiklund, J., & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: a configurational approach. Journal of Business Venturing, 20(1), 71-91.
• Zainol, N. R., & Mamun, A. A. (2018). Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia. Journal of Enterprising Communities: People and Places in the Global Economy, 12(3), 299-321. doi:DOI 10.1108/JEC-11-2017-0090
• Zizile, T., & Tendai, C. (2018). The Importance Of Entrepreneurial Competencies On The PerformanceOf Women Entrepreneurs In South Africa. The Journal of Applied Business Research, 34(2).