Drucker’s MBO in Entrepreneurship 4.0: the role of FinTech, AI and tax compliance in SMEs

Purpose This study investigates how digitalization and participatory management practices jointly influence entrepreneurial performance (EP) in small and medium-sized enterprises (SMEs). Drawing on Peter Drucker’s management by objectives (MBO), the research emphasizes the role of employee involvement in goal-setting, alongside the integration of FinTech, AI tools and tax compliance. It aims to identify potential necessity candidates and sufficient configurations that drive superior performance outcomes in digitally evolving SMEs. Design/methodology/approach Data were collected via structured questionnaires from SME managers across multiple sectors in Greece. Using a 5-point Likert scale to assess core constructs, the study applies fuzzy-set qualitative comparative analysis (fsQCA) to test necessity, sufficiency and configurational pathways between participatory management and digital practices. Findings The analysis reveals that participatory goal-setting under MBO, FinTech adoption and AI tool usage are central drivers of EP. In particular, the inclusion of employees in decision-making emerged as a key enabler of alignment and execution. While tax compliance supports business continuity, it is not a standalone driver of high performance. Combinations of participatory management with digital tools were found to be sufficient for enhanced ROI, profitability and sales growth. AI also moderates and amplifies the performance effects of both MBO and FinTech adoption. Originality/value This study extends Drucker’s MBO into the domain of Entrepreneurship 4.0 by demonstrating its relevance as a participatory management practice in the digital era. It contributes to the literature on employee involvement, high-performance work systems and SME digitalization, offering actionable insights for managers and policymakers seeking to align strategic objectives with inclusive and technology-driven practices.