The Effect of Entrepreneurial Orientation and Innovation towards Small, and Medium Enterprises (SMES) Performance through Motivation

Problems regarding the performance of Small and medium enterprises (SMEs) based on the creative economy have become a priority issue for both practitioners and academics.Due to the importance of entrepreneurship and innovation in the SMEs companies, the current study investigates the effect of entrepreneurial orientation and innovation towards SMEs performance through manager motivation in UAE.The research design was quantitative, descriptive, causal, and cross-sectional held by an online questionnaire tool targeted all women executive manager who run SMEs of UAE .This study used type stratified random sampling technique, which is a mix between simple random sampling and stratified sampling.Using the AMOS software, the Structural Equation Model (SEM) was adopted to analyze a sample of 439 surveys and examine the hypotheses.The outcome of this study indicated that entrepreneurial orientation has a significant positive effect on SMEs performance, and it confirmed that innovation practices has a significant positive effect on SMEs performance.Moreover, manager motivation has proved to be a mediator between entrepreneurial orientation and SMEs performance.Furthermore, current research findings contribute to extending existing relevant knowledge about the effect of entrepreneurial orientation and innovation towards SMEs performance through manager motivation in UAE and understanding the relationship between these variables to be of significant guidance to managing entrepreneurship in emerging economies.The current research contributes to the present literature since very limited studies investigated the entrepreneurial orientation and innovation on SMEs performance.Moreover, previous studies did not sufficiently analyze the effects of entrepreneurial orientation on SMEs performance with the contribution of manager motivation.thus helping to close the research gap related to these relationships from an emerging-economy perspective.