SMEs Business Growth Model and Mediating Role of Market Orientation

Abstract

The growth for SMEs is central point for their success and survival. Review of SME growth suggests that there are different factors which inculcate enterprise to grow. This study addresses the literature gap on the internal factors of an enterprise that contributes in SME’s business growth. A framework is developed to measure the growth of SMEs on three internal factors as reward system, decentralization of organization and owners’ attitude with a mediating effect of market orientation. Data is collected using survey method from SMEs located in Pakistan at different geographic locations of Pakistan. A deductive approach with mono method using Sobel test for multiple regression is adopted for this empirical study which argues that a significant potential lies in an enterprise to grow by adopting these factors.