Investigating the mediating role of strategic improvisation in the relationship between entrepreneurial orientation and firm performance in Turkish micro-enterprises using PLS-SEM

Aykanat, Zafer; Çelik, Ali Kemal; Yıldız, Tayfun

doi:10.7819/rbgn.v27i03.4313

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Article • Rev. Bras. Gest. Neg. 27 (3) • 2025 • https://doi.org/10.7819/rbgn.v27i03.4313 linkcopy

Investigating the mediating role of strategic improvisation in the relationship between entrepreneurial orientation and firm performance in Turkish micro-enterprises using PLS-SEM

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose The main objective of this paper is to investigate the mediating effect of strategic improvisation on entrepreneurial orientation and firm performance.

Theoretical framework This study adds to the body of knowledge on entrepreneurial orientation and firm performance and advances the resource-based theory.

Design/methodology/approach A sample of 241 SMEs was used to establish and examine four hypotheses. Partial least squares structural equation modeling (PLS-SEM) was used for data analysis.

Findings The empirical findings reveal that strategic improvisation behavior partially mediates the relationship between entrepreneurial orientation and firm performance as a predictor of entrepreneurs' business success in SMEs.

Practical & social implications of research This paper may help lessen environmental uncertainty and enhance foresight. Managers and business owners need to be aware of the findings.

Originality/value This paper fills an important gap in our understanding of the role of strategic improvisation in entrepreneurial orientation and firm performance in Asian environments, such as Türkiye, with corresponding partial mediation effects of strategic improvisation and statistically significant connections among entrepreneurial orientation, firm performance, and strategic improvisation.

Keywords:
Strategic improvisation; entrepreneurial orientation; firm performance; Türkiye; micro-enterprises; PLS-SEM

Item No	Statement No	Statements	Source
1	EO1	A strong emphasis on R&D and technological leadership	Anderson et al., 2009; Covin & Wales, 2011; Jiang et al., 2018; Lee et al., 2019
2	EO2	New product or service lines
3	EO3	Changes in product or service lines
4	EO4	When dealing with competitors, it typically initiates actions
5	EO5	New products and services, administrative techniques, operating technologies, etc.
6	EO6	Very competitive and undoes competitors' postures
7	EO7	A strong proclivity for high-risk projects
8	EO8	Bold, wide-ranging actions
9	EO9	Bold, aggressive posture to maximize the probability of success

Item No	Statement No	Statements	Source
1	FP1	Quick to enter new markets	Ravichandran et al., 2005
2	FP2	Introduces new products and services faster than competitors
3	FP3	Success rates of new products and services
4	FP4	Productivity success level
5	FP5	Profit success level
6	FP6	Financial performance level
7	FP7	Financial performance success

Item No	Statements No	Statements	Source
1	SI1	The team's response to unexpected events	Vera & Crossan, 2005; Ibrahim et al., 2018
2	SI2	The team's ability to respond quickly to incidents
3	SI3	The team's ability to respond quickly to unexpected events
4	SI4	The team is trying new approaches to problems
5	SI5	The team trials new work processes
6	SI6	The team's willingness to take risks in generating new ideas
7	SI7	The team's desire for originality

Variables	Frequency	Percentage
Gender
Male	194	80.5
Female	47	19.5
Age
≤ 30	54	22.4
31-40	91	37.8
41-50	58	24.1
51-60	24	10.0
>61	14	5.8
Education Status
Primary and high school	124	51.5
Associate degree	55	22.8
Undergraduate	52	21.6
Graduate	10	4.1
Sector (Nace Rev. 2)
A-Agriculture, Forestry, and Fishing	5	2.07
C-Manufacturing	18	7.47
F-Construction	6	2.49
G-Wholesale and Retail Trade	160	66.3
H-Transportation and Storage	9	3.73
I-Hospitality and Food Service Activities	25	10.3
J-Information and Communication	4	1.66
M-Vocational, Scientific, and Technical Activities	3	1.24
P-Education	2	0.83
R-Culture, Arts, Entertainment, Recreation, and Sports	4	1.66
S-Other Service Activities	5	2.07
Age of SMEs
≤ 10 years	19	7.88
11-20 years	162	67.2
>21 years	60	24.9
Number of employees
1-9	226	93.8
10-49	15	6.2

Strategic improvisation scale
I address unanticipated events on the spot.
I effectively and intelligently adjust to new developments or changing circumstances.
I immediately deal with unexpected problems.
I try new approaches to solve problems.
I identify opportunities for new ideas and processes.
I take risks to produce new ideas.
I demonstrate originality in performing my duties.
Firm performance scale
We have entered new markets very quickly.
We have brought new products and services to the market faster than our competitors.
The success rates of our new products and services have been very high.
Our productivity has exceeded that of our competitors.
Our profits have exceeded those of our competitors.
Our financial performance has been outstanding.
Our financial performance has exceeded that of our competitors.
Entrepreneurial orientation scale
Innovativeness items
In general, the top managers of my firm favor...
… a strong emphasis on marketing tried-and-tested products or services.
… a strong emphasis on R&D, technological leadership, and innovations.
How many new product or service lines has your firm marketed in the past five years (or since its establishment)?
No new lines of products or services.
Very many new lines of products or services.
Changes in product or service lines have mostly been minor.
Changes in product or service lines have usually been quite dramatic.
Proactivity items
When dealing with competitors, my firm…
… typically responds to competitors' actions.
… typically initiates actions to which competitors then respond.
… is very seldom the first business to introduce new products, services, administrative techniques, operating technologies, etc.
… is very often the first business to introduce new products, services, administrative techniques, operating technologies, etc.
… typically seeks to avoid competitive clashes, preferring a “live-and-let-live” posture.
… typically adopts a very competitive, “outdo-the-competitors” posture.
Risk-taking items
In general, the top managers of my firm have…
… a strong proclivity for low-risk projects with normal and certain rates of return.
… a strong proclivity for high-risk projects with the chance of very high returns.
In general, the top managers of my firm believe that...
… due to the nature of the environment, it is best to explore it gradually through cautious, incremental behavior.
… due to the nature of the environment, bold, wide-ranging actions are necessary to achieve the firm's objectives.
When confronted with decision-making situations involving uncertainty, my firm…
… typically adopts a cautious, “wait-and-see” posture in order to minimize the probability of making costly decisions.
… typically adopts a bold, aggressive posture in order to maximize the probability of exploiting potential opportunities.

Factors	Statements	Loadings	VIF	α	rho_A	CR	AVE
Firm Performance	FP1	0.739	1.865	0.889	0.891	0.913	0.602
	FP2	0.797	2.443
	FP3	0.825	2.380
	FP4	0.724	1.701
	FP5	0.758	1.989
	FP6	0.789	2.706
	FP7	0.795	2.733
Entrepreneurial Orientation	EO4	0.691	1.633	0.812	0.812	0.865	0.517
	EO5	0.687	1.612
	EO6	0.718	1.777
	EO7	0.801	2.140
	EO8	0.727	1.607
	EO9	0.684	1.460
Strategic Improvisation	SI1	0.661	1.565	0.813	0.819	0.865	0.518
	SI2	0.809	2.198
	SI3	0.694	1.551
	SI4	0.761	2.074
	SI5	0.698	1.585
	SI7	0.685	1.539

	Firm performance	Entrepreneurial orientation	Strategic improvisation
Firm performance	0.776
Entrepreneurial orientation	0.683	0.719
Strategic improvisation	0.524	0.496	0.720

	Firm performance	Entrepreneurial orientation
Firm performance
Entrepreneurial orientation	0.795
Strategic improvisation	0.602	0.603

	Original sample (O)	Sample mean (M)	Standard deviation (STDEV)	T statistics (\|O/STDEV\|)
Entrepreneurial Orientation -> Firm Performance	0.683	0.685	0.040	17.067
Entrepreneurial Orientation--> Strategic Improvisation	0.496	0.503	0.054	9.110
Strategic Improvisation--> Firm Performance	0.246	0.252	0.056	4.369

Indirect effects	Original sample (O)	Sample mean (M)	Standard deviation (STDEV)	t statistics (\|O/STDEV\|)	p values
Entrepreneurial Orientation--> Strategic Improvisation--> Firm Performance	0.122	0.127	0.032	3.766	0.000
Direct effects	Original sample (O)	Sample mean (M)	Standard deviation (STDEV)	t statistics (\|O/STDEV\|)	p values
Entrepreneurial Orientation -> Firm Performance	0.561	0.558	0.052	10.747	0.000
Entrepreneurial Orientation--> Strategic Improvisation	0.496	0.503	0.054	9.110	0.000
Strategic Improvisation--> Firm Performance	0.246	0.252	0.056	4.369	0.000

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[1] All entrepreneurial orientation scales used in the present study are unidimensional, and the statements were measured using a five-point Likert-type scale.