The main objective of this study is to examine the mediating role of access on finance
and the moderating role of business environment on the relationship between
entrepreneurial orientation (EO), market orientation (MO), learning orientation (LO),
technology orientation (TO) and performance of Small and Medium Enterprises (SMEs)
in Nigeria. Data were collected from the SMEs operating in North Western Nigeria
using a cross-sectional study design. The study adopted cluster sampling and randomly
selected 522 respondents and questionnaires were distributed and collected through the
personally-administered method. Partial Least Squares Structural Equation Modelling
(PLS-SEM) was used to test the study hypotheses. This study finds that EO, LO and TO
are important strategic orientations for the performance of SMEs in Nigeria. The
findings reveal that SMEs’ access to finance depends on the degree of MO, LO and TO
of the enterprise. It is expected EO would improve a firm’s accessibility to finance, but
the finding of this study does not support this expectation as EO negatively influences
firm performance. Interestingly, the results further show that with better access to
finance, MO, LO and TO influence firm performance. Furthermore, business
environment does not have a significant moderating influence on the paths between EO
and performance, MO and performance, LO and performance and TO and performance.
The results of this study provide important insights to owner-managers, policy-makers
and researchers to further understand the effects of strategic orientations on firm
performance. Owner-mangers of SMEs should emphasize on EO, MO, LO and TO;
however, it is important to note that over-concentration on EO may result in lower
accessibility of financing. Policy-makers should encourage SMEs to improve their cash
flow, profit and retained earnings which may encourage financial institutions to provide
them with financial services. Lastly, limitations of the current study and avenues for
future research are discussed.