IMPACT OF ICT READINESS AND KNOWLEDGE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE WITH MEDIATION OF ENTREPRENEURIAL STRATEGIC ORIENTATION

Abstract

Small and medium-sized enterprises (SMEs) play a critical role in economic development. Yet many struggle to achieve sustainable performance due to limited technological capabilities, poor knowledge utilization, and insufficient strategic orientation. Drawing on Dynamic Capability Theory and the Resource-Based View, this study examines how ICT Readiness and Knowledge Management influence Organizational Performance. It investigates the mediating role of Entrepreneurial Strategic Orientation in this relationship. Using a quantitative, cross-sectional research design, data were collected from 300 owners and senior managers of SMEs operating in the wood manufacturing industry in Lahore, Pakistan. The findings indicate that both ICT Readiness and Knowledge Management have significant positive effects on Organizational Performance. Moreover, ICT Readiness and Knowledge Management strongly enhance Entrepreneurial Strategic Orientation, which, in turn, exerts a substantial positive influence on Performance. Mediation analysis reveals that Entrepreneurial Strategic Orientation partially mediates the relationships between ICT Readiness and Organizational Performance, as well as between Knowledge Management and Organizational Performance. The findings highlight the need for SME managers and policymakers to adopt integrated strategies that simultaneously strengthen ICT Readiness, Knowledge Management, and Entrepreneurial capability to achieve sustainable growth.