Abstract
This research paper empirically examined the moderating effect of entrepreneurial culture and
government support on the relationship between entrepreneurial orientation and perceived
financial firm performance in the context of province Khyber Pakhtunkhwa, Pakistan. Literature
on firm level entrepreneurship studies argued that external environmental factors varies across
countries and regions, therefore, investigating the relationship between entrepreneurial
orientation and firm performance is contingent to the external factors known as
entrepreneurial ecosystem of the region. Data were collected from 392 managers, senior
officials and owners of the SME’s representing four different business sectors of food and
beverages, textile and leather products, wood and wood products, arms ammunition and other
manufacturing products geographically located in Peshawar, Gadoon, Risalpur and Hattar
industrial zones of Khyber Pakhtunkhwa. Proportionate stratified random sampling technique
were utilized to give proper representation to each sub-population stratum. Data analysis were
performed in IBM SPSS 23 and IBM SEM AMOS 23. Constructs Measurement model, structural
model and path analysis were done through AMOS structural equation modeling. Further, to
examine the moderation effect of the variables entrepreneurial culture and government
support on the relationship between Entrepreneurial Orientation and firm performance Baron
and Kenny (1983) three step approach were used. Findings of the present research revealed
significant positive relationship between entrepreneurial orientation and SME’s firm
performance. Moreover, entrepreneurial culture significantly moderates the relationship
between entrepreneurial orientation and firm performance, whereas government support do
not moderate the relationship between Entrepreneurial orientation and firm performance.
Syed Noman Mustafa, Shahid Jan Kakakhel, Fayaz Ali Shah. (2019) The moderating effect of entrepreneurial culture and government support on the relationship between entrepreneurial orientation and firm performance, Abasyn Journal of Social Sciences, Volume-12, Issue-2.
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