Mediative Role of Entrepreneurial Environment and Innovation in the Relationship between Entrepreneurial Competency and Performance in Nagaland, India

Entrepreneurial competencies are specialized abilities, characteristics, and qualities an individual needs to launch, run, and expand a firm successfully. This article attempts to study the mediating role of entrepreneurial role and innovation in the correlation between entrepreneurial competency and the performance of micro, small & medium enterprises (MSMEs) in Nagaland, India. This study used a sample of 306 respondents in Nagaland, India. A five-point Likert scale was used for the measurement of the variables. Entrepreneurial Competency (EC) positively impacted Entrepreneurial Performance (PE), Innovation (IN), and Entrepreneurial environment (EV). IN and EV positively impacted PE. Further analyses indicated that EV and IN mediated the relationship between EC and PE in Nagaland. The types of mediation were partial and complementary. The mediating effects of innovation and a supportive environment are studied on EC in making a firm in Nagaland improve its performance. The outcomes may serve as a focal point for improving business performance.