Organizational capabilities mediates between organizational culture, entrepreneurial orientation, and organizational performance of SMEs in Pakistan

Objective: Our purpose was to determine the mediating role of organizational capabilities between organizational culture, entrepreneurial orientation, and organizational performance of small and medium-sized enterprises (SMEs) in Pakistan. Research Design & Methods: A total of 384 questionnaires were used for analysis using SmartPLS 3.0. Partial least square structural equation modelling was used for hypotheses testing. The area cluster sampling technique was used for data collection. Findings: Organizational culture and entrepreneurial orientation are positively associated with organizational capabilities that lead to organizational performance. Organizational capabilities significantly mediate between organizational culture, entrepreneurial orientation, and organizational performance. Implications & Recommendations: Future researchers can use business strategy, market orientation, leadership, and knowledge management to determine organizational performance. Corporate governance and market orientation can use the mediating or moderating effect between entrepreneurial orientation, organizational culture, knowledge management, and organizational performance. Contribution & Value Added: We used organizational capabilities with entrepreneurial orientation and organizational culture to measure organizational performance using resource-based view (RVB).