Participation of women-owned SMEs in public procurement: the role of entrepreneurial orientation and knowledge management orientation

Abstract

Purpose This study aims to examine the influence of entrepreneurial orientation and knowledge management orientation on participation of women-owned small and medium enterprises (SMEs) in public procurement. The research also aimed at examining the influence of knowledge management orientation on entrepreneurial orientation, and the mediating role of entrepreneurial orientation on the relationship between Knowledge management orientation and participation of women-owned SMEs in public procurement. Design/methodology/approach The study used a quantitative cross-sectional survey design. Data were collected using a drop-off pick-up method. The determined sample size for the women-owned SME firms was 123, while an effective sample size of 103 was obtained, and covariance-based structural equation modelling was used to test the research hypotheses. Findings Findings indicated that entrepreneurial orientation and knowledge management positively and significantly influenced both the search for tender opportunities and the number of times the firm submitted bids. Knowledge management orientation had a significant positive influence on entrepreneurial orientation, while entrepreneurial orientation partially mediated the relationship between knowledge management orientation and participation of women-owned SMEs in public procurement, thus implying that both knowledge management orientation and entrepreneurial orientation contribute to search for tender opportunities and the number of times a woman-owned SME firm submits bids. Research limitations/implications The study was cross-sectional and quantitative in nature, yet it involved behaviour aspects such as participation in public procurement. Further, a wholistic approach is taken when studying the SMEs disregarding the industrial characteristics to which the SME belongs. Social implications Almost 30% to 38% of SMEs in developing countries are owned by women. Focusing on increasing the number of women owned SMEs participating in public procurement will improve the nations’ GDP and increase the number of the citizens in the labour force due to increased employability. Originality/value Previous research takes a wholistic approach when examining SMEs participation in public sector procurement disregarding the impact of gender. Further, knowledge management orientation and entrepreneurial orientation in women-owned SMEs are studied for the first time in a public procurement setting.