Strategic Flexibility: Mediating Entrepreneurial Orientation and SME Performance in Bahrain

The study aimed to identify the mediating role of Strategic Flexibility in the relationship between Entrepreneurial Orientation and its dimensions (Innovativeness, Proactiveness, Risk-taking, Autonomy, and Competitive Aggressiveness) and the performance of Bahraini SMEs according to the Balanced Scorecard perspective. The study used descriptive analytical approach, and the study population consisted of = small and medium enterprises that are members of Bahrain Society for Development of Small and Medium Enterprises. Questionnaire was used as a tool to collect primary data from the study sample and (205) questionnaires were analyzed using the Statistical Package for the Social Sciences (SPSS) program. The study concluded that there is an impact of the dimensions of Entrepreneurial Orientation studied in achieving SME performance from the perspective of the balanced scorecard, dimension of Autonomy came as the most influential dimension in achieving performance, followed by Risk-taking, then Proactiveness and Competitive Aggressiveness, followed by the Innovativeness dimension. The study found a statistically significant positive effect of Entrepreneurial Orientation and its five dimensions on achieving Strategic Flexibility, and found a positive, statistically significant effect of Strategic Flexibility on achieving performance according to the Balanced Scorecard perspective. The study also found a partial mediation of Strategic Flexibility in the relationship between Entrepreneurial Orientation and the performance of SMEs. The study recommended the need to enhance the concept of entrepreneurial orientation in Bahraini SMEs, and to adopt its dimensions as a strategic construct on which their decision-making process is based, by holding seminars and educational programs, and Encourage SMEs managers not to depend on Innovativeness exclusively to achieve performance, but rather including other entrepreneurial elements in addition to it, to achieve the required performance, and adopting balanced scorecard perspectives as a comprehensive strategic tool for measuring performance by Bahraini small and medium-sized enterprises, and not narrowing the horizon when Consider performance and limit it exclusively to financial income or the number of employees.