The Moderating Role of Access to Physical Infrastructure on the Relationship between Entrepreneurial Orientation and Firm Performance

Abstract

Present research study has investigated access to physical infrastructure role as moderator between an association of entrepreneurial orientation and subjective financial performance in small and medium enterprises located in Khyber Pakhtunkhwa. The study has collected data from the registered SME’s owners, managers and senior officials of the manufacturing sector. Stratified random sampling technique were used to collect each respondent proportionately among the target sample of the current study. Six hundred and thirty eight questionnaire were distributed among respondents. Out of six hundred and thirty eight questionnaires, four hundred and twenty seven questionnaire were received. The three step procedure of Baron and Kenny (1983) were utilized to perform moderation analysis. Results of the present study revealed significant and affirmative association of entrepreneurial orientation and perceived financial performance. Moreover, results of moderation analysis showed, access to physical infrastructure positively as well as significantly moderate the relationship between firm level entrepreneurial orientation and perceived financial performance in small and medium Enterprise’s in Khyber Pakhtunkhwa province.