Open Access

A Strategic Framework for Assessing Entrepreneurial Competencies and SME Performance in Competitive Business Environments

https://doi.org/10.55640/ijmbd-v03i10-02

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Hiroshi Nakamura ¹ , Yuki Tanaka ¹ ,

⁴ Department of Business Administration, Osaka International University, Osaka, Japan

⁴ Faculty of Management Studies, Nagoya Metropolitan University, Nagoya, Japan

Abstract

Small and medium-sized enterprises (SMEs) operate in increasingly competitive environments where entrepreneurial competencies influence the capacity of firms to identify opportunities, manage uncertainty, innovate, and sustain performance. This paper develops a strategic framework for assessing the relationship between entrepreneurial competencies and SME performance by synthesizing the supplied literature on entrepreneurial skills, dynamic capabilities, innovation, risk-taking, sustainability, market orientation, stakeholder relationships, and enterprise competitiveness. A conceptual research approach is adopted in which entrepreneurial competencies are positioned as strategic organizational resources that affect SME outcomes through opportunity recognition, innovation capability, risk management, strategic adaptation, and market engagement. The analysis indicates that entrepreneurial competencies should not be evaluated solely as individual skills; rather, their contribution to SME performance depends on how effectively they are transformed into organizational capabilities and competitive actions. The proposed framework integrates competency dimensions with financial, market, operational, innovation, and sustainability-oriented performance indicators. The study further identifies a research gap concerning the systematic integration of entrepreneurial competencies with dynamic capabilities and contextual business conditions. The framework provides a basis for empirical assessment and supports SME owners, policymakers, educators, and business-development institutions in designing competency-oriented interventions.

Keywords

Entrepreneurial Competencies, SME Performance, Dynamic Capabilities

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