MODELLING THE RELATIONSHIP BETWEEN ENTREPRENEURIAL CLIMATE AND VENTURE PERFORMANCE: THE MODERATING ROLE OF ENTREPRENEURIAL COMPETENCIES

Entrepreneurial ventures constitute important drivers for economic growth and corporate success irrespective of size, age or the industry they play. This study examines the moderating impact of entrepreneurial competencies on the relationship between entrepreneurial climate and venture performance. A sample of 400 Small and Medium Enterprises (SMEs) that affiliated with selected professional associations in three geographical regions in Nigeria participated in this study. Hierarchical Multiple Regression, Structural Equation Modelling and Confirmatory Factor Analysis (CFA) were used to test the proposed model. The results reveal that entrepreneurial competencies strongly moderate the relationship between entrepreneurial climate and venture performance. In addition, entrepreneurial climate and entrepreneurial competencies significantly predict venture performance. The study underscores the significance of entrepreneurial competency dimensions, the understanding of the complexities of the macro environment and the need to focus attention on pertinent entrepreneurial competencies. Our findings suggest that collaboration between government and SMEs practitioners to define suitable institutional settings and capacity building can enhance the survival and performance of entrepreneurial ventures.