Modelling Entrepreneurial Orientation and Strategic Capabilities on Competitiveness and Sustainability of Manufacturing SMEs: The Application of PLS-SEM Analysis


  • Elohor Katherine Idolor
  • Sunday Abayomi Adebisi
  • Simeon E. Ifere
  • Ben E. A. Oghojafor


Entrepreneurial Orientation, Strategic Capabilities, SMEs, Business Competitiveness


At the moment, the majority of the world's firms are currently impacted by sharp monetary
tightening, easing inflation, and geopolitical tensions from Russia's ongoing invasion of Ukraine,
which resulted in a global recession that affected global capital income and investment growth.
Despite global financial challenges, small and medium-sized enterprises (SMEs) face difficulties
in promoting inclusive and sustainable economic policies, creating jobs, and promoting
sustainable industrialization in the domestic market. Furthermore, business globalisation is
accelerating around the world, and succeeding in a highly competitive environment necessitates
aggressive deployment of firms' business strategies, core competencies, resource allocation and
utilisation, and active entrepreneurial behaviour that results in the firm gaining a comparative
advantage over its competitors. The study adopts purposive sampling, a non-probability
sampling technique to select the participants for the study. The confirmatory factor analysis
(CFA) and partial least squares structural equation model (PLS-SEM) were used to test the four
hypotheses. The findings indicate that SMEs can achieve long-term competitiveness and
sustainability by taking a more creative, innovative, risk-taking approach and identify the most
important strategic capabilities for business strategy and decision-making. The study
demonstrates the significance of developing entrepreneurial behaviours characteristics and
strategic capabilities for improving the competitiveness and sustainability of manufacturing