Market, Entrepreneurial Orientations, Crisis Adaptiveness, and Performance of SMEs: A Moderated Mediation Analysis

Guided by the resource-based view and dynamic capabilities theory, this study investigates the roles of market orientation (MO), entrepreneurial orientation (EO), environmental munificence (EM), and complexity (EC) in shaping crisis adaptiveness and firm performance. The study gathered data from 656 small-to-medium-sized enterprises (SMEs) located in the greater Kuala Lumpur area shortly after the easing of pandemic-related restrictions. The hypotheses were examined through the application of partial least squares structural equation modeling (PLS-SEM). The empirical results indicate that crisis adaptiveness mediates the MO-performance, and EO-performance links, with the individual direct pathways among these variables also remaining significant. Furthermore, EM weakened the direct effect of crisis adaptiveness on firm performance. EC positively moderated EO’s direct and indirect effects on crisis adaptiveness and firm performance. Entrepreneurs can leverage these insights to develop proactive crisis management strategies and cultivate a culture of innovation and market responsiveness within their businesses to remain agile, resilient, and adaptive to unpredictable market forces. Additionally, policymakers and business consultants can use these findings to tailor support programs that enhance SMEs’ crisis adaptiveness, particularly by fostering proactive, innovative, risk-taking behaviors and resource reconfiguration. By integrating the resource-based and dynamic capabilities paradigms, this study not only bridges the gap between MO, EO, crisis adaptiveness, and firm performance but also provides actionable insights for strengthening SMEs’ strategic positioning in uncertain environments.