FACTORS AFFECTING THE OPERATIONAL PERFORMANCE OF SMES: EXPLORING THE MEDIATING ROLE OF PROCESS MANAGEMENT

Abstract

The objective of this study was to investigate the various factors that can potentially impact the operational performance of small and medium-sized enterprises (SMEs). This study examines various factors that have been investigated in relation to their impact on the operational performance of small and medium-sized enterprises (SMEs). Specifically, the factors of training on quality, continuous improvement, rewards, quality assurance, and strategic agility are analysed. Additionally, the study sought to examine the mediating function of process management. In order to accomplish the objective of the research, data was gathered from a sample of 245 employees employed in diverse manufacturing organisations located in Saudi Arabia. The data collected for this study was subjected to analysis using the statistical software packages SPSS and AMOS. The results of the study indicate a significant correlation between process management and the operational performance of small and medium-sized enterprises (SMEs). Furthermore, various factors such as quality training, continuous improvement, rewards, quality assurance, and strategic agility exhibited a significant correlation with process management. Furthermore, it was observed that process management played a crucial role in mediating the relationship between all of these factors and the operational performance of small and medium-sized enterprises (SMEs), with the exception of the relationship between strategic agility and the operational performance of SMEs. This study contributes to the existing body of knowledge by addressing the limited literature on the operational performance of small and medium-sized enterprises (SMEs) and the lack of research examining the relationship between various factors and SME operational performance in the context of process management.