FROM ENTREPRENEURIAL ORIENTATION TO PERFORMANCE: THE MEDIATING ROLE OF STRATEGIC FLEXIBILITY AMONG SMES IN BIZANA

Abstract

This study examined how entrepreneurial orientation (EO) dimensions affect SME performance in Bizana, Eastern Cape, with strategic flexibility as a mediator. Grounded in the Resource-Based View and Dynamic Capability Theory, a quantitative design was used. Data from 200 SME owners/managers were analyzed via SPSS and SmartPLS 4. Results showed that only competitive aggressiveness (β = 0.285, p < 0.01) and proactiveness (β = 0.461, p < 0.001) significantly predicted strategic flexibility. Innovativeness, risk-taking, and autonomy were non-significant. Strategic flexibility strongly influenced performance (β = 0.774, p < 0.001), explaining 71.4% of variance (R² = 0.714). The model had good predictive relevance (Q² = 0.551) and fit (GoF = 0.634). Findings suggest market-facing EO behaviors are vital for adaptive capacity in rural, resource-constrained contexts.