Unveiling the strategic factors that influence small and medium-sized enterprises’ performance

This research aims to study the influence of entrepreneurial orientation (EO), knowledge management (KM), and small and medium-sized enterprises (SMEs) performance and seeks to identify the moderation effect of organizational trust (OT) on these relationships. The study empirically examines the conceptual model using a sample of 210 SMEs, using a close-ended self-administered questionnaire. The result indicates a positive direct relationship between EO, KM, and performance. Moreover, OT moderates the relationship between EO, KM, and SME performance. This study has provided some empirical evidence for the importance EO practices (innovativeness, proactiveness, and risk-taking) and KM (knowledge sharing, acquisition, and application) to improve SMEs performance and create a competitive advantage (Abdelwahed & Alshaikhmubarak, 2023; Giampaoli et al., 2017). Furthermore, this study affords insights for SME owners/managers to support initiatives and innovation practices. Policymakers, on the other hand, should reinforce trust and facilitate access to sharing and implementing knowledge and creative ideas for the benefit of firms.