Entrepreneurial orientation role in enhancing SMEs economic performance in developing countries: Mediating of environmental performance

Abstract

This study examines the role of Entrepreneurial Orientation (EO) in enhancing Economic Performance (ECOP)among manufacturing SMEs in Yemen, with Environmental Performance (EP) as a mediating factor. It addresses gaps in sustainability research within developing countries using Contingency Theory.Data were collected from 199 manufacturing SMEs through a cross-sectional. Structural Equation Modeling-Partial Least Squares (SEM-PLS) was employed to evaluate complex relationships and assess the mediating role of (EP).The results show that EO positively influences both EP and ECOP, with EP mediating the EO- ECOP relationship. These findings emphasize that entrepreneurial strategies are vital for achieving environmental and economic sustainability.