The Mediating Role of Technological Innovation Awareness on the Impact of SMEs’ Resources on Their Sustainable Growth in Lao PDR

This paper aims to investigate the effect of SME’s resources including, financial resources (FRR), financial literacy (FLR), managerial capacities (MCR) and market orientation (MKR) on SME’s sustainable growth (SG) in both financial SG (FSGE) and non-financial SG (NFSGE) terms; and to identify the technological innovation awareness (TIR) mediates the effect of these resources on SGSMEs. Data were collected from 517 SMEs, using survey method and adopted a random sampling technique. Structure Equation Model (SEM) and the Baron, and Kenny (1986) mediation approach, Amos was applied to test hypotheses. The findings revealed the resources contributed 41.9 percent and 32.9 percent of the variance in FSGE and NFSGE, respectively, and confirmed the mediating role of TIR in the relationship between resources and SG. Notably, FRR had an indirect effect on FSGE through TIR, although TIR partially mediated the relationship between FRR and NFSGE, and between FLR and SG, both in FSGE and NFSGE terms. While, TIR fully mediated the relationship between MKR and SG, both in FSGE and NFSGE terms as well. This evidence informs the importance of business resources and competencies. In particular, TIR plays an important role in business operations to enhance and maintain sustainable growth.

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