Entrepreneurial competence; Do they matter for a firms’ performance?

The worldwide interest on entrepreneurship and small business development as a means of economic sustainability and growth have been well recognized and acclaimed in the academic community. Entrepreneurial competencies have been the interest of researchers since last three decades. The present study seeks to study the relationship between entrepreneurial competencies and firm performance; moderated by cluster effect, environmental turbulence and institutional void. A cross sectional study of questionnaire survey research design was conducted and data was generated from 101 owners of small and medium firms in manufacturing industry across Delhi/NCR (National Capital Region), India. The population of the study consisted of first hand owners (founders) of the firms. The data was collected through interviews. The firm performance has been measured in financial and non financial terms.

Stepwise regression method was used for data analysis. Since cronbach alpha was below 0.6 for the variables; the sub- variables could not be combined. However results revealed the influence of entrepreneurial competence on firm performance was only partially supported. Also it was found that environment turbulence; institutional void and cluster effect partially moderate the relationship between entrepreneurial competence and firm performance.