Presenters:Mohammad TariSara KazemiMohammad Forouzandeh

Conceptual frame work of factors affecting SME development: Mediating factors on the relationship of entrepreneur traits

and SME performance

Lead -in

Who makes a great

entrepreneur?

How an SME can turn into an LSE?

How can a firm get greater share of

the market?

SME ‘s performanc

e vs entrepreneu

r traits

The main difference between SME&LSE

The purpose of

the article

Introduction

Constructs affecting SME ‘s performance

Innovative

perform

ance

Innoative

Capacity

Organizational

Search

Entrepren

euria

l

Orientat

ion

Market

Orientat

ion

Firm Performance is usually measured as financial and nonfinancial performance

measures.

Financial Measures

Nonfinancial Measures

Return on Investment

Profit

Costs

Customer Satisfaction

Employee ‘s Growth

Market Share

Entrepreneur’s Traits

Risk-taking

Propensity

MotivationPreference for

Innovation

Flexibility

Social Skills

Locus of Control

’‘Innovation is any idea ,practice or object that is perceived to be new

.(unit of adoption’’(Rogers

Purpose of

Innovation

Increase of Competitivene

ss

Product.

Process.

Marketing

Organizational

Different types of innovation

Innovative Performance

It refers to the extent to which firms actually introduce their innovation to the

market, such as: the rate of new products, new processes new

devices(Freeman& Soete) .

Innovative performance &Firm performance

Organizational Search

It refers to a firms ‘s activity in finding knowledge , ideas, information that will bring about stronger competences and capabilities that will

result in innovations.

Search Pattern: Most SME ‘s conduct their search in an informal way as contrasted to medium to high technology SMEs .

Oragnizational Search

organizati

onal

search

results i

n

new

knowl

edge

and i

nfor

mati

on

New

i

nfor

mati

on is

repl

aced

by

ol

d i

nfor

mati

on

Innovative Perfor

mance

Purpose of OS

Achieve noble ideas

Find certain information on

purchases and market

Innovative Performance& Organizational Search

Innovative Capacity:It is firm’s ability to utilize knowledge internally, regardless

the newness of the knowledge for the firm and its ability to match the outcomes of its innovation with the final market expectations in the changing market needs.

relies onkey personnel's

information

Knowledge in SME

Entrepreneurial Orientation

’‘Firm ‘s strategic orientation. The one which makes the specific

decisions .’’

Entrepreneurial orientation

Entrepreneur Traits

High score in EO

Competitive PostitionOragizational Search

Innovative performance

Entrepreneurial orientation and organizational search

Market Orientation: It refers to a part of organizational culture that serves as a key to a firm ‘s success by

emphasizing customer orientation, competitor orientation and responsiveness(Kohli&Jaworski).

What is the role of Market Orientation ?

Entrepreneurial Orientation V.S Market Orientation

The Correlation of the following constructs:

Market Orientation & Organizational Search

Market Orientation &Innovative Capacity