IMPACT OF ENTREPRENEURIAL ORIENTATION AND SOFT TOTAL QUALITY MANAGEMENT PRACTICES ON WORK PERFORMANCE: MEDIATED BY AFFECTIVE COMMITMENT IN SMEs

Abstract

Small and Medium Enterprises (SMEs) are considered the backbone of economic growth, industrial development, innovation, and employment generation worldwide. However, increasing globalization, technological transformation, and market uncertainty have compelled SMEs to adopt strategic orientations and employee-centered management practices to remain competitive and sustainable. In this context, entrepreneurial orientation (EO) and soft Total Quality Management (TQM) practices have emerged as important determinants of organizational effectiveness and employee performance. Despite growing scholarly attention, limited empirical studies have simultaneously examined the combined effects of EO and soft TQM practices on work performance through affective commitment within SMEs. The present study investigates the impact of entrepreneurial orientation and soft TQM practices on work performance, with affective commitment acting as a mediating variable among SMEs in the textile sector. The study is grounded in Human Capital Theory, which suggests that organizational investments in employees through entrepreneurial orientation and soft quality management practices enhance employees' knowledge, skills, commitment, and ultimately their work performance. A quantitative research approach was adopted using a cross-sectional survey design. Data were collected from managerial employees working in textile SMEs through structured questionnaires. A total of 650 questionnaires were distributed, and 607 valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that entrepreneurial orientation significantly and positively influences work performance and affective commitment. Similarly, soft TQM practices demonstrate a strong positive effect on both affective commitment and employee work performance. The mediation analysis further confirms that affective commitment partially mediates the relationships between entrepreneurial orientation, soft TQM practices, and work performance. The results suggest that organizations emphasizing innovation, proactive strategic behavior, employee participation, supportive leadership, teamwork, and continuous improvement create emotionally committed employees who exhibit superior performance outcomes.

The study contributes theoretically by integrating entrepreneurial orientation, soft TQM practices, affective commitment, and work performance into a unified framework within the SME context. Practically, the findings provide strategic insights for SME managers and policymakers regarding the importance of entrepreneurial culture and employee-centered quality management practices in improving employee productivity and organizational sustainability.