Moderating Effects of Organizational Learning Capability On The Relationship Between Innovation, Branding and SMEs Performance in Sports Industry of Pakistan PDF

MODERATING EFFECTS OF ORGANIZATIONAL
LEARNING CAPABILITY ON THE RELATIONSHIP

BETWEEN INNOVATION, BRANDING AND SMEs
PERFORMANCE IN SPORTS INDUSTRY OF PAKISTAN
MUHAMMAD HAROON HAFEEZ
DOCTOR OF PHILOSOPHY
UNIVERSITI UTARA MALAYSIA
JUNE 2014
MODERATING EFFECTS OF ORGANIZATIONAL LEARNING CAPABILITY
ON THE RELATIONSHIP BETWEEN INNOVATION, BRANDING AND
SMEs PERFORMANCE IN SPORTS INDUSTRY OF PAKISTAN
BY
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business,
University Utara Malaysia,
In Fulfillment of the Requirement for the Degree of Doctor of Philosophy
Kolej Perniagaan
(College of Business)
Universiti Utara Malaysia
PERAKUAN KERJA TESlS 1 DlSERTASl

(Certification of thesis / dissertation)
Kami, yang bertandatangan, memperakukan bahawa

(We, the undersigned, certify that)
calon untuk Jjazah DOCTOR OF PHILOSOPHY

(candidate for the degree ofl
telah mengemukakan tesis Idisertasi yang bertajuk:

(has presented hisher thesis /dissertation of the following tifle):
MODERATING EFFECTS OF ORGANIZATIONAL LEARNING CAPABILITY ON THE RELATIONSHIP

BETWEEN INNOVATION, BRANDING AND SMEs PERFORMANCE IN SPORTS INDUSTRY OF
PAKISTAN
seperti yang tercatat di muka surat tajuk dan kulit tesis Idisertasi.
(as if appears on the title page and front cover of the thesis /dissertation).
Bahawa tesisldisertasi tersebut boleh diterima dari segi bentuk serta kandungan dan meliputi bidang ilmu
dengan memuaskan, sebagaimana yang ditunjukkan oleh calon dalam ujian lisan yang diadakan pada:
13 April 2014.
(That the said thesis/dissertation is acceptable in form and content and displays a satisfactory knowledge of the
field of study as demonstrated by the candidate through an oral examination held on:
73 April 2014).
Pengerusi Viva Tandatangan

Assoc. Prof. Dr. Abdul Rahim Othman
(Chairman for Viva) (Signature)
Perneriksa Luar Tandatangan

Assoc. Prof. Dr. Amran Awang
(External Examined (Signature)
Perneriksa Dalam . Dr. Norashidah Hashim

Tandatangan
(Internal Examined (Signature)
Tarikh: 13 April 2014

(Date)
Nama Pelajar : Muhammad Haroon Hafeez
(Name of Student)
Tajuk Tesis I Disertasi . Moderating Effects of Organizational Learniqg Capability on the

(Title of the Thesis /Dissertation) Relationship between Innovation, Branding and SMEs
Performance in Sports Industry of Pakistan
Program Pengajian : Doctor of Philosophy

(Programme of Study)
Nama PenyelialPenyelia-penyelia : Prof. Dr. Mohd Noor Mohd Shariff

(Name of Supervisor/Supervisors)
Tandatangan
Nama PenyelialPenyelia-penyelia : Dr. Halim Mad Lazim

(Name of Supervisor/Supervisors)
PERMISSION TO USE
In presenting this thesis, in fulfillments of the requirements of a Post Graduate degree

from Universiti Utara Malaysia (UUM), I agree that the Library of this university may
make it freely available for inspection. I further agree that permission for copying this
thesis in any manner, in whole or in part, for scholarly purposes may be granted by
my supervisor(s) or in their absence, by the Dean of Othman Yeop Abdullah Graduate
School of Business. It is understood that any copying or use of this thesis or parts
thereof for financial gain shall not be allowed without my written permission. It is
also understood that due recognition shall be given to me and to UUM for any
scholarly use which may be made of any material from my thesis.
Request for permission to copy or to make other use of materials in this thesis in
whole or in part should be addressed to:
Dean of Othman Yeop Abdullah Graduate School of Business

Universiti Utara Malaysia
060 10 UUM Sintok
Kedah Darul Aman
Malaysia
ABSTRACT
Small and medium enterprises (SMEs) play a catalytic role in strengthening the
economy of developing counties. The performance of SMEs depends on various
factors. Among those factors include innovation and branding practices. This study
aimed to investigate the nature of relationship that exists between Innovation,
Branding and SMEs performance in sports industry of Pakistan. Furthermore, the
study intended to examine the moderating effects of organizational learning capability
on relationship between Innovation, Branding and SMEs performance. A structured
questionnaire representing dimensions related to innovation, branding, organizational
learning capability and SMEs Performance was designed. Survey method was used to
conduct study on 352 SMEs in sports industry of Pakistan. Multiple Regression
analysis was employed in order the study the nature and strength of relationship
between Innovation and SMEs Performance, as well as between Branding and SMEs
Performance. Results indicated that both Innovation and Branding have a significant
positive effect on SMEs performance. Hierarchical Regression Analysis was utilized
to see the moderating effects of Organizational Learning Capability on relationship
between Innovation, Branding and SMEs performance. Findings revealed that
Organizational learning Capability does not moderate the relationship between
Innovation, Branding and SMEs performance. These results imply that SMEs must
emphasize on bringing innovations and embracing branding practices if they desire to
enhance their performance. The study also contributed to the theory as it extended
Resource Based View, Dynamic Capabilities Perspective and the Theory of the
growth of the firm by integrating three distinct literature streams pertaining to
Innovation, Branding and Organizational Learning.
Keywords: innovation, SMEs branding, organizational learning capability, SMEs

performance, sports industry
ABSTRAK
Perusahaan Kecil dan Sederhana (PKS) berperanan sebagai pemangkin dalam

memperkukuh ekonomi Negara membangun. Prestasi PKS bergantung kepada
pelbagai faktor, termasuklah amalan inovasi dan penjenamaan. Kajian ini
bermatlamat untuk menyelidik sifat hubungan yang wujud antara inovasi,
penjenamaan dengan prestasi PKS dalam industry sukan di Pakistan. Selain itu, kajian
ini turut berhasrat untuk meneliti kesan penyederhana kemampuan pembelajaran
organisasi terhadap hubungan antara inovasi, penjenamaan dengan prestasi PKS. Soal
selidik berstruktur yang memperlihatkan dimensi yang berkaitan dengan inovasi,
penjenamaan, kemampuan pembelajaran organisasi telah direka. Kaedah tinjauan
digunakan bagi mengkaji sejumlah 352 PKS dalam industry sukan di Pakistan.
Analisis Regresi Berganda telah diupayakan bagi meneliti sifat dan kekuatan
hubungan antara inovasi dengan prestasi PKS dan antara penjenamaan dengan
prestasi PKS. Hasil kajian menunjukkan bahawa kedua-dua inovasi dan penjenamaan
mempunyai kesan positif yang signifikan terhadap prestasi PKS. Analisis Regresi
Berhierarki telah diupayakan untuk menentukan kesan penyederhana kemarnpuan
pembelajaran organisasi terhadap hubungan antara inovasi, penjenamaan dengan
prestasi PKS. Dapatan kajian menunjukkan kemampuan pembelajaran organisasi
tidak sederhana hubungan antara Inovasi, Penjenamaan dan prestasi PKS. Dapatan-
dapatan ini menunjukkan bahawa PKS perlu menekankan inovasi dan mengamalkan
penjenamaan mereka sekiranya mereka mahu meningkatkan prestasi. Kajian ini turut
menyumbang kepada teori dengan mengembangkan Pendekatan Asas kepada Sumber,
teori kemampuan dinamik dan teori pengembangan firma dengan menyepadukan tiga
aliran kosa ilmu yang penting yang berkaitan inovasi, penjenamaan dan pembelajaran
organisasi.
Kata kunci: inovasi, penjenamaan PKS, kemampuan pembelajaran organisasi,

prestasi PKS, industri sukan
ACKNOWLEDGENIENT
With the name of Allah Almighty, the most beneficent, the most merciful, and the
creator of mankind, Who has given us knowledge to understand the right and wrong,
to explore the hidden mysteries of the world. First of all I would like to thank Allah
Almighty Who gave me strength and courage to complete this task successfully.
Then, I would like to pay special gratitude to my respected supervisors. I am highly
indebted to my main supervisor, Professor Dr. Mohd Noor Mohd Shariff for
providing valuable guidance, encouragement and support. I have learnt a lot from him
which would guide me through the rest of my life. I am also very grateful to my co-
supervisor, Dr. Halim bin Mad Lazim for sparing his time whenever required. He has
been a great help during my period of study.
I also take this opportunity to thank my parents, siblings, spouse and kids who
supported me through every thick and thin, and encouraged me to face the challenges
as opportunities to excel in life. Challenges are not hurdles but opportunities to
explore new knowledge. So, I am very thankful to my family for their much needed
support. I am quite thankful to my fnends especially Farooq Durrani, Sheikh
Muhammad Rafiul Huque and Raza Ali who understood my worries and supported
me through their actions and words to make me relax and contented. It is true that
friend's words are the most comfortable words to give relaxation in the time of
difficulties.
Last but not the least; I would like to offer my special thanks to all of my teachers,
and my university, Universiti Utara Malaysia, for providing me supportive and
healthy environment to fulfill my task.
vii
TABLE OF CONTENTS
Page
TITLE PAGE ....................................................................................
i
CERTIFICATION OF THESIS WORK ..................................................
..
11
PERMISSION TO USE ......................................................................

iv
ABSTRACT .....................................................................................
v
ABSTRAK.......................................................................................vi
ACKNOWLEDGEMENT...................................................................
vii
..
TABLE OF CONTENTS...................................................................
...
VIII
LIST OF TABLES............................................................................
...
xiii
LIST OF FIGURES ...........................................................................

xv
LIST OF ABBREVIATIONS .............................................................
xvi
CHAPTER ONE INTRODUCTION ..................................................... 1

1.1 Background of the Study .............................................................................
1
1.2 Problem Statement.......................................................................................
8
1.3 Research Objectives ....................................................................................
15
1.4 Research Questions ....................................................................................
15
1.5 Scope of the study.......................................................................................
16
1.6 Significance and Contributions of the Study....................................18
1.7 Operational Definitions .............................................................
22
1.8 Organization of the Study .........................................................
24
1.9 Summary of the Chapter ...........................................................
26
CHAPTER TWO LITERATURE REVIEW .........................................27

2.1 Introduction ..............................................................................................
28
2.2 Background of Entrepreneurship ................................................................
29
2.3 Definitions of SMEs ...............................................................
32
2.4 Significance of SNIEs ..................................................................................
36
2.5 Problems of SMEs .......................................................................................
37
2.6 SMEs Performance .....................................................................................
42
2.7 Innovation............................................................................
52
2.7.1 Definitions of Innovation....................................................................53
...
Vlll
2.7.2 Dimensions of Innovation ...................................................................55
2.7.3 Lnfluence of Innovation on Firm Performance in SMEs ....................60
2.8 Branding .............................................................................
74
2.8.1 A comparison of Branding practices in SMEs and Large
Organizations ......................................................................................80
2.8.2 Branding Issues in SMEs ....................................................................95

2.8.3 Nature of Studies on Branding in SMEs .................................102
2.9 Organizational Learning Capability .............................................104
2.9.1 Definitions of Organizational Learning Capability ..........................104
2.9.2 Dimensions of Organizational Learning Capability .........................107
2.9.3 Influence of Organizational Learning Capability on Innovation ...... 111
2.9.4 Influence of Organizational Learning Capability on Branding ........ 113
2.9.5 Influence of Organizational Learning Capability on firm
Performance ......................................................................................
115
2.9.6 Rationale for Organizational Learning Capability as Moderator .....117
2.10 Underlying Theories of the study ............................................................120

2.10.1 Resource Based View .......................................................................... 1 2 0
2.10.2 Dynamic Capabilities Perspective ..................................................123
2.10.3 Theory of the Growth of the Firm ..................................................... 128
2.1 1 Summary of the chapter ...........................................................................134
CHAPTER THREE RESEARCH METHODOLOGY ............................136

3.1 Introduction ...............................................................................................
136
3.2 Research Framework ................................................................................136
3.3 Development of Hypothesis .......................................................................140
3.4 Research Design ........................................................................................144
3.4.1 Purpose of Research ..........................................................................144
3.4.2 Time Frame of Study ........................................................................145
3.4.3 Research Method ..............................................................................146
3.4.4 Unit of Analysis ................................................................................147
3.5 Sampling Method ......................................................................................148
3.6 Data Collection and Questionnaire Administration ..................................151
3.7 Questionnaire Design ................................................................................153
3.7.1 Innovation: Operationalization .........................................................153
3.7.2 Branding: Operationalization ............................................................157
3.7.3 Organizational Learning Capability: Operationalization ..................159
3.7.4 SMEs Performance: Operationalization ...........................................161
3.7.5 Measurement Scales..........................................................................164
3.7.6 Reliability and Validity of the Instrument ........................................165
3.7.7 Pilot Study .........................................................................................166
3.8 Data Analysis Techniques ......................................................................... 168
3.9 Summary of the Chapter ...........................................................................174
CHAPTER FOUR RESULTS AND DISCUSSION .................................175

4.1 Introduction ...............................................................................................
175
4.2 Data Screening ..........................................................................................
175
4.2.1 Missing Data ...................................................................................176
4.2.2 Test of Non Response Bias ................................................176
4.2.3 Dealing with Outliers .......................................................................177
4.2.4 Assessment of Linearity ...................................................179
4.2.5 Assessment of Normality .................................................................180
4.2.6 Assessment of Multicollinearity .......................................................182
4.3 Demographic Profile of Respondents .......................................................183
4.4 Goodness of Measure.................................................................................186
4.5 Statement of Hypotheses ............................................................................196
4.6 Descriptive Analysis of Major Variables ...................................................198
4.7 Test of Hypotheses .....................................................................................199
4.7.1 Multiple Regression Analysis ..........................................................200
4.7.2 Moderated Hierarchical Regression Analysis ...........................205
4.7.2.1 The Moderating Effect of the Organizational Learning
Capability on the Relationship between Innovation.
Branding and SMEs Performance ..............................206
4.7.2.2 The Moderating Effect of the Experimentation on the

Relationship between Innovation. Branding and SMEs
Performance ........................................................
210
4.7.2.3 The Moderating Effect of Interaction with External
Environment on the Relationship between Innovation,
Branding and SMEs Performance. ..... .... ........ ....... .....2 12
4.7.2.4 The Moderating Effect of Participative decision making

on the Relationship between Innovation, Branding and
SMEs Performance.. . . ......................... ....,..............2 15
4.8 Summary of the Chapter ...........................................................................2 18
CHAPTER FIVE CONCLUSION AND RECOMMENDATION ..............220

5.1 Introduction ...............................................................................................
220
5.2 Overview of the Study ...............................................................................
220
5.3 Discussion ................................................................................................
225
5.3.1 Positive Relationship between Innovation and SMEs Performance. 225
5.3.1 .1 Positive Relationship between Technological Innovation and

SMEs Performance.. .... . .. ............ . .......... ........ . ......226
5.3.1.2 Positive Relationship between Non-Technological

Innovation and SMEs Performance.. . . . ...... ..... ....... .......227
5.3.2 Positive Relationship between Branding and SME Performance .....228
5.3.2.1 Positive Relationship between Branding Orientation and

SMEs Performance.. ....... ... .............. ........... ...........229
5.3.2.2 Positive Relationship between Corporate Brand

Associations and SMEs Performance.. ............... .. ... ....230
5.3.3 The Moderating Effect of the Organizational Learning

Capability on the Relationship between Innovation, Branding
and SMEs Performance.. ............................ ... .. . . ....... .... . . ......2 3 1
5.3.3.1 The Moderating Effect of the Experimentation on

the Relationship between Innovation, Branding and
SMEs Performance ......................................... . .... .. . .. .2 3 2
5.3.3.2 The Moderating Effect of Interaction with External

Environment on the Relationship between Innovation,
Branding and SMEs Performance ........................................233
5.3.3.3 The Moderating Effect of Participative Decision
Making on the Relationship between Innovation.
Branding and SMEs Performance .......................................235
5.4 Contributions of the Study ........................................................................238
5.4.1 Theoretical Contribution ................................................................2 3 8
5.4.2 Policy and Managerial Implications .................................................... 241
5.5 Limitations of the Study ............................................................................
245
5.6 Recommendations for Future Research ....................................................246
5.7 Concluding Remarks ...............................................................................247
REFERENCES ................................................................................................... 251

APPENDICES ..............................................................................316
Appendix A: Research Questionnaire....................................................................316
Appendix B : Urdu Version of Questionnaire........................................................321
Appendix C: List of Respondents ..........................................................................
330
Appendix D: Statistical Output ..............................................................................
338
xii
LIST OF TABLES
Table Page
Table 1.1 Growth Performance of Small Scale Manufacturing in Pakistan: A
Decade-W ise Comparison ..............................................................
2
Table 2.1 Malaysia's Definition of SMEs ........................................................32
Table 2.2 Definition of SMEs in Japan ..............................................................
33
Table 2.3 Definition of SMEs in South Korea ..................................................33
Table 2.4 Definition of SMEs by North American and European Countries ...................34
Table 2.5 Definition of SMEs based on Number of Employees ..............................34
Table 2.6 Definition of SMEs by International Finance Corporation (IFC) and World
Bank ......................................................................................
34
Table 2.7 Definition of SMEs by various Institutions in Pakistan ........................... 35
Table 2.8 Characteristics of Performance Measures ...........................................
45
Table 3.1 Data Collection Schedule............................................................
146
Table 3.2 Questions on lnnovation .............................................................
156
Table 3.3 Questions on Branding ...............................................................
158
Table 3.4 Questions on Organizational Learning Capability ................................161
Table 3.5 Questions on SMEs Performance ....................................................164
Table 4.1 Missing Values .......................................................................
-176
Table 4.2 Test of Non-Response Bias ..........................................................177
Table 4.3 Detection of Influential Outliers ....................................................179
Table 4.4 Skewness and Kurtosis................................................................
181
Table 4.5 Assessment of Multicollinearity ....................................................
182
Table 4.6 Profile of Respondents ................................................................I86
Table 4.7 Results of Factor Analysis for Innovation ..........................................187
Table 4.8 Results of Factor Analysis for Branding ............................................189
Table 4.9 Results of Factor Analysis for Organizational Learning Capability ............190
Table 4.10 Results of Factor Analysis for SMEs Performance ..............................192
Table 4.1 1 Results of Factor Analysis for lndependent Variables ..........................193
Table 4.12 Reliability Coefficients for Latent Variables .....................................195
Table 4.1 3 Summary of dimensions before and after factor analysis .......................195
...
Xlll
Table 4.14 Descriptives for major variables.. ................................................
199
Table 4.15 Impact of Innovation and Branding on SMEs Performance ..................203
Table 4.16 Relationship between Dimensions of Predictor and Criterion variables.. ...204
Table 4.1 7 Hierarchical Regression Results using Organizational Learning Capability
as a Moderator in the Relationship between Innovation, Branding and
SMEs Performance.. ...............................................................
.208
Table 4.18 Hierarchical Regression Results using Experimentation as a
Moderator in the Relationship between Innovation, Branding and SMEs
Performance. ........................................................................
-21 1
Table 4.19 Hierarchical Regression Results using Interaction with External
Environment as a Moderator in the Relationship between Innovation,
Branding and SMEs Performance.. ...............................................2 1 3
Table 4.20 Hierarchical Regression Results using Participative decision making
as a Moderator in the Relationship between Innovation, Branding and
SMEs Performance.. ...............................................................
.2 16
Table 4.21 Summary of Results of Multiple Regression and Hierarchical Regression
Analysis.. ............................................................................
..2 17
xiv
LIST OF FIGURES
Figure Page
Figure 3.1 Research Framework ................................................................. -139
Figure 4.1 Scatter Plots of Variables ......................................................180
Figure 4.2 Age of Business ......................................................................183
Figure 4.3 Number of Employees ............................................................... 184
Figure 4.4 Capital Invested in the Business (Pakistan Rupees) ........................... 184
Figure 4.5 Status of Business ...............................................................
185
Figure 4.6 Scope of Business...................................................................................185
Figure 4.7 Moderating effect of Organizational Learning Capability on the
Relationship between Innovation and SMEs Performance ...................209
Figure 4.8 Moderating effect of Interaction with External Environment on the
Relationship between Innovation and SMEs Performance ....................214
LIST OF ABBREVIATIONS
BMP Brand Management Practices

EIU Economist Intelligence Unit
GDP Gross Domestic Product
IFC International Finance Corporation
OECD Organization for Economic Cooperation and Development
R&D Research and Development
RBV Resource Based View
SMEs Small and Medium Enterprises
SME Corp. Small and Medium Enterprise Corporation
SMEDA Small and Medium Enterprise Development Authority
WEF World Economic Forum
xvi
CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
Small and medium enterprises (SMEs) are regarded as pillars of economic
performance in developed as well as developing nations. In case of developing nations
the role of SMEs is firther enhanced and magnified as their economy is not built on
shoulders of large Multinational Enterprises (MNEs) (Hussain, Si, Xie & Wang, 2010).
Developing countries largely rely on the performance of SMEs for the uplift and growth
of their economy. Similarly, the economy of Pakistan also depends enormously on
performance of SMEs.
In Pakistan, SMEs represent about 99% of total business establishments. They are
mostly dealing in wholesale and retailing and restaurant and hotel (53%), social and
personnel services (22%) and manufacturing (20%). These SMEs are accounting for 30%
of annual gross domestic product (GDP) of the country, employment of 80% of non
agricultural labor force, 25% of total exports and 35% of value added manufacturing
(Hussain et al., 201 0).
It has been identified that despite of magnanimous economic support and
contribution towards development, the performance of SMEs remains below expectations
in the developing countries (Arinaitwe, 2006). The factors contributing towards low
The contents of
the thesis is for
internal user
only
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MODERATING EFFECTS OF ORGANIZATIONAL

LEARNING CAPABILITY ON THE RELATIONSHIP

MUHAMMAD HAROON HAFEEZ

PERAKUAN KERJA TESlS 1 DlSERTASl

Kami, yang bertandatangan, memperakukan bahawa

MUHAMMAD HAROON HAFEEZ

calon untuk Jjazah DOCTOR OF PHILOSOPHY

telah mengemukakan tesis Idisertasi yang bertajuk:

MODERATING EFFECTS OF ORGANIZATIONAL LEARNING CAPABILITY ON THE RELATIONSHIP

Pengerusi Viva Tandatangan

Perneriksa Luar Tandatangan

Perneriksa Dalam . Dr. Norashidah Hashim

Tarikh: 13 April 2014

Tajuk Tesis I Disertasi . Moderating Effects of Organizational Learniqg Capability on the

Program Pengajian : Doctor of Philosophy

Nama PenyelialPenyelia-penyelia : Prof. Dr. Mohd Noor Mohd Shariff

Nama PenyelialPenyelia-penyelia : Dr. Halim Mad Lazim

In presenting this thesis, in fulfillments of the requirements of a Post Graduate degree

Dean of Othman Yeop Abdullah Graduate School of Business

Keywords: innovation, SMEs branding, organizational learning capability, SMEs

Perusahaan Kecil dan Sederhana (PKS) berperanan sebagai pemangkin dalam

Kata kunci: inovasi, penjenamaan PKS, kemampuan pembelajaran organisasi,

PERMISSION TO USE ......................................................................

LIST OF FIGURES ...........................................................................

CHAPTER ONE INTRODUCTION ..................................................... 1

CHAPTER TWO LITERATURE REVIEW .........................................27

2.8.2 Branding Issues in SMEs ....................................................................95

2.9.6 Rationale for Organizational Learning Capability as Moderator .....117

2.10 Underlying Theories of the study ............................................................120

CHAPTER THREE RESEARCH METHODOLOGY ............................136

CHAPTER FOUR RESULTS AND DISCUSSION .................................175

4.7.2.2 The Moderating Effect of the Experimentation on the

4.7.2.4 The Moderating Effect of Participative decision making

4.8 Summary of the Chapter ...........................................................................2 18

CHAPTER FIVE CONCLUSION AND RECOMMENDATION ..............220

5.3.1 .1 Positive Relationship between Technological Innovation and

5.3.1.2 Positive Relationship between Non-Technological

5.3.2 Positive Relationship between Branding and SME Performance .....228

5.3.2.1 Positive Relationship between Branding Orientation and

5.3.2.2 Positive Relationship between Corporate Brand

5.3.3 The Moderating Effect of the Organizational Learning

5.3.3.1 The Moderating Effect of the Experimentation on

5.3.3.2 The Moderating Effect of Interaction with External

REFERENCES ................................................................................................... 251

BMP Brand Management Practices

1.1. Background of the Study

Small and medium enterprises (SMEs) are regarded as pillars of economic

performance in developed as well as developing nations. In case of developing nations

of their economy. Similarly, the economy of Pakistan also depends enormously on

(Hussain et al., 201 0).

It has been identified that despite of magnanimous economic support and

contribution towards development, the performance of SMEs remains below expectations

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