Entrepreneurial Network Towards Small Firm Performance Through Dynamic Capabilities: The Conceptual Perspective

This conceptual paper reveals the hypothesized link between entrepreneurial network and small firm performance and the mediating effect of dynamic capabilities on the mentioned relationship. The theoretical grounds of the entrepreneurial network, dynamic capabilities and small firm performance established this conceptual framework. This paper adopts the Resource Based View (RBV) which claims that firm valuable strategic resources (entrepreneurial network) and capabilities (dynamic capabilities) both are important to make firm successful. Similarly, Dynamic Capability View (DCV) support and verify this conceptual framework. It means the stronger entrepreneurial network will lead to develop dynamic capabilities, which will ultimately cause the higher firm performance. Therefore, this paper incorporates two strategically important variables namely, entrepreneurial network and dynamic capabilities to enhance the small firm performance, whereas RBV suggests that firms make progress on the basis of resources and capabilities. Entrepreneurial network and dynamic capabilities both are regarded as the important elements to combat the lower firm performance in current turbulent business environment. By keeping in view, the theoretical foundations of RBV and DCV, this paper proposes a conceptual framework in examining the mediating role of dynamic capabilities on the relationship between entrepreneurial network and small firm performance.