The Relationship between Corporate Entrepreneurship and SME Performance

larger samples. Aliyua (2018) did research into how Total Quality Management (TQM) affects the performance of organisations in the Jordanian banking sector. A questionnaire is sent out to eleven small and medium-sized businesses (SMEs) in the commercial sector using the statistical package for social science (SPSS) software. It was shown that there is a significant correlation between TQM and performance.

Aliyua (2018) conducted an investigation on the views held by corporate customers towards a variety of topics using TQM approaches that were offered by SMEs.

According to the results, senior management's devotion, politeness, and responsibility to customers have a significant bearing on the level of satisfaction felt by those customers.. As a result, the goal of this research is to suggest the following hypothesis:

H2: There is a significant relationship between TQM and the performance of SMEs.

2.7.3 The Relationship between Corporate Entrepreneurship and SME

services, as well as devising strategies to boost competitiveness. There has been a significant amount of research conducted on the connection between CE and performance, especially in the context of the economic cycle (Antoncic & Hisrich, 2004; Foss, Lyngsie, & Zahra, 2013; Kaya, 2006; Kelley, Ali, & Zahra, 2013; Naman

& Slevin, 1993; Zahra, 1991, 1993, 1995). In the research that Oghojafor, Kuye, and Sulaimon (2011) carried out in Nigeria with a sample size of 670 manufacturing companies, they discovered that there is a substantial association between CE and business performance. As an illustration of this, consider the following: In addition to this, the research brought to light a significant difference between the successful operations of entrepreneurial and traditional businesses, and it urged businesses and other organisations in Nigeria to display a strong dedication to entrepreneurial endeavours.

The management of an organisation need to foster the growth of corporate entrepreneurship and highlight the positive impact it has on both innovation and performance. Zahra (2015), in response to Covin and Slevin (1991), mentioned the possibility that the same factors that contribute to stimulating entrepreneurship at one organisational level might also hinder the entrepreneurial processes and activities at different levels within the same organisation. This was in reference to the fact that there are multiple levels within an organisation. According to Zahra (2013), different entrepreneurial postures at various periods in time may have the potential to affect different performance characteristics. Because of this, it is imperative that additional research be conducted in the scientific community about this link.

Popular literature also mentions a number of possible non-financial outcomes, such as increased employee motivation, employee engagement in task(s), ability to retain high potential employees, and creation of positive organisational culture that encourages employees and organisational needs integration. These are just a few examples of the many possible non-financial outcomes. In their study from 1994, McGrath, Venkatraman, and MacMillan added three more benefits: 1) increased company value;

2) value creation for consumers; and 3) the establishment of a distinct edge over other businesses.

It is a given that the degree to which entrepreneurial activity influences a company's success will, by necessity, vary from one organisation to another. It is not operating in isolation to drive performance; rather, it is continually engaging with a variety of other organisational elements. It has been stated that the performance of a company should be evaluated using both financial and non-financial metrics since it is a multi-dimensional entity. There has been a lot of discussion on market orientation and entrepreneurial orientation since both of these factors not only assist businesses in improving their ability to manage the environment, but also in doing well overall in their operations. Since the beginning of time, people have been curious in how much market orientation and entrepreneurialism contribute to an organization's overall effectiveness (Zahra, 2015). The research that has been done on the topic of market orientation and entrepreneurship has provided conflicting data on their direct influence on performance. Researchers have been investigating the effect that a variety of contingency factors have in company performance, particularly those that affect market orientation and entrepreneurialism. Numerous researchers have investigated the effect that an entrepreneurial orientation has on the performance of an organisation,

moving from simple models with the moderating effects of environment to more complex views investigating the interaction effects of the organisation and environment with EO on firm performance based on a variety of different configurations of internal resources and environmental challenges. The findings of previous studies give proof not only that the success of a company is impacted by the entrepreneurial qualities of its leaders, but also by the contextual variables, organisational factors, and strategic choices made by the company. Because the results are often contradictory and varied, the interactions between these components are also of great relevance when attempting to explain the success of the company. Meanwhile, entrepreneurial behaviour in terms of the pursuit of opportunities by innovatively using resource combinations is seen as very critical for the organization's survival, renewal, and profitable growth. This is due to the fact that entrepreneurial behaviour is seen as very critical for the organization's ability to make a profit.

According to previous research, the performance results of entrepreneurial activities could be measured as economic profit, product innovation and new venture growth, concern for public welfare and social legitimacy, or simply personal satisfaction.

Moreover, the research also states that the performance results of entrepreneurial activities could be measured as concern for public welfare and social legitimacy.

According to Covin and Slevin's (1991) theory, the success of an entrepreneurial endeavour is dependent on the actions taken at both the organisational and individual levels. Individual acts at the level of an entrepreneur might have an effect on the actions taken by the company, and the terms are often used interchangeably. Many companies have the expectation that venturing into entrepreneurial pastures would assist them in developing and maintaining a high level of performance. According to

Covin and Slevin (1991), there is an absence of empirical data that supports this link.

Covin and Slevin (1986) made the discovery that a company's goal of corporate entrepreneurship, which they defined as product innovation, risk taking, and "futurity,"

substantially and positively predicts (p less than.01) a company's net income-to-sales ratio. The company performance scale and the entrepreneurial pasture scale were shown to have a zero-order association of r=.39 (p .001) when analysed by Covin &

Slevin (1986). There is a favourable correlation between entrepreneurial stance and business performance, as shown by substantial anecdotal evidence (Hoang et al., 2006). Research has been conducted on entrepreneurial endeavours at three different levels: the corporate, the company (unit), and the functional levels, such as marketing and human resources.

According to Covin and Slevin (1986), companies that have a higher level of corporate entrepreneurial posture are more successful in comparison to their competitors. As a result, it is possible to draw the conclusion that there is a positive correlation between the corporate practises of a firm and the performance of the company. This favourable association is also corroborated by Fuentes-Fuentes et al. (2004) in their research which was performed on small enterprises. The study looked at the effects of social media on small businesses. Kuratko et al. (2017) offered two different sorts of effects of corporate entrepreneurship strategy in their research conducted in Ireland. The first type of consequence was at the management level, and the second type was at the organisational level. The authors went on to explain that the learning, invention (creativity), or success of a company as a result of the implementation of a corporate entrepreneurial strategy has an effect on the performance measurements of the company. Evaluation of performance may be carried out in accordance with several

criteria, including financial criteria (such as the rate of increase in sales), market criteria (such as the stock price), innovation output criteria (such as the manufacture of new goods), and behavioural factors (e.g. number of available entrepreneurial prospects). There is also accessible a comprehensive discussion on how businesses strive to gain by introducing newness, being more sensitive to the environment and markets, and experiencing some degree of daring. This talk piques the listener's curiosity in learning more about the link between corporate entrepreneurship and business performance. However, the body of academic research also implies that an improvement in a company's performance often takes place as a result of the company's capacity to anticipate demand and its aggressive positioning by providing consumers and markets new goods and/or services. Nevertheless, numerous research have shown conflicting results about the strength of the connection between these two factors. In addition, previous research suggests that businesses that have adopted entrepreneurial behaviours have also been outperforming others, particularly businesses that do not practise entrepreneurial behaviours (with a r value of greater than.30); some other research suggests that the correlation between EO and firm performance is weak, while other research did not find any significance in the relationship between the two; and yet other research did not find any significance in the relationship between the two (Covin et al., 1994). As a consequence of this, the links that have been observed between corporate entrepreneurship and the success of firms show a significant amount of diversity. The relationship between corporate entrepreneurship and business success is dependent on the indicators that are being used for the purpose of analysing the performance. This is due to the fact that the word

"performance" itself encompasses several dimensions.

According to Kreiser et al., findings from the academic literature have yielded outcomes that were both inconsistent and confusing with regard to the operationalization of corporate entrepreneurship (2019). In the body of published work, one may come across a wide variety of viewpoints about the connection between corporate entrepreneurship and the success of firms. In addition, a number of academics have shown that, in the context of a national setting, organisational performance is favourably correlated with corporate entrepreneurship as a success factor. In this respect, the research conducted by Kreiser et al. (2019) offers evidence that, in the context of the United States, the practise of corporate entrepreneurship has been shown to have a favourable link with the success of businesses. In a similar vein, the research that Stam and Elfring (2008) conducted offered empirical evidence for the effect that corporate entrepreneurship has on the success of businesses within the setting of the Netherlands. In addition, Kreiser and colleagues (2019) discovered that a favourable correlation exists between corporate entrepreneurship and the success of businesses in the setting of China. Through the use of a meta-analysis, Thai Hoang et al. (2006) provided further evidence for the result that corporate entrepreneurship adds a large amount of significance to the success of businesses. In conclusion, the empirical data pointed to the significance of corporate entrepreneurship in terms of the contribution it makes to overall performance improvement. Empirical evidence of the significance of corporate entrepreneurship in enhancing financial and non-financial performance has been offered by Zahra et al. (2015) and Zahra and Covin (1995). In addition to this, more recent research on corporate entrepreneurship has shown that there is a correlation between the two. However, the existing body of literature also empirically highlights inconsistent results about the relationship between corporate entrepreneurship and business performance, which gives rise to the necessity for

further investigations on this relationship, particularly in the context of the banking sector. Based on the literature, this study draws the following hypothesis:

H3: Corporate entrepreneurship has significant impact on the SMEs performance.