Abstract

Small and medium-sized enterprises (SMEs) are considered to be the world’s largest. They play a vital role as they create jobs and improve the living conditions of their local communities as they contribute to the country’s GDP growth. Due to their contributions to the nation’s economy, they have been given much attention in entrepreneurship. This paper aims to study the impact of entrepreneurial education and entrepreneurial competencies on small and medium enterprises’ performance. Entrepreneurship is a vital component of any successful business strategy. It can be used to overcome the uncertainties of today’s business environment. The roles of these two independent factors in the business environment are also more relevant to small businesses. The goal of this paper is to develop a framework that explores the performance of firms from the perspective of their entrepreneurial education and entrepreneurial competencies. The proposed framework aims to provide a comprehensive view of the factors that influence the performance of businesses. It shows that entrepreneurial education is the antecedent of competencies that can affect firm performance, where entrepreneurial competencies is treated as a mediating variable. In addition, this study explores the role of entrepreneurial education and entrepreneurial competencies in developing financial and non-financial business performance. The framework is based on the resource-based view, a constantly applied approach to the small business context to utilize strengths and weaknesses to achieve sustainable competitive advantage. The paper provides valuable insights into the entrepreneurial factors that businesses can consider when enhancing their performance. It also helps entrepreneurs in developing their entrepreneurial education and competencies to increase their chances of achieving better results in their businesses which in return can help to reduce the number of business failures and thus, boost the country’s economy.

Keywords: Entrepreneurial Education, Entrepreneurial Competencies, Firm Performance, Resource-Based View, Small Businesses.

JEL Classification: L25, L26.

Cite as: Kanaan-Jebna, J.M.A., Alabdullah, T.T.Y., Ahmed, E.R., Ayyasamy, R.K. (2022). Firm Performance and the Impact of Entrepreneurial Education and Entrepreneurial Competencies. Business Ethics and Leadership, 6(2), 68-77. https://doi.org/10.21272/bel.6(2).68-77.2022

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Abushammala, S.N., Alabdullah, T.T.Y., & Ahmed, E.R. (2015). Causal Relationship between Market Growth and Economic Growth. Comparison Study. European Journal of Business and Management, 7(33), 31-36. [Google Scholar]
2. Ahmed, E.R.e.A. (2016). Zakat and Accounting Valuation Model. Journal of Reviews on Global Economics, 5(16-24), 24. [CrossRef]
3. Ahmed, E.R., Alabdullah, T.T.Y., Ardhani, L., & Putri, E. (2021). The Inventory Control System’s Weaknesses Based on the Accounting Postgraduate Students’ Perspectives. Journal of Accounting and Business Education, 5(2), 1-8. [Google Scholar] [CrossRef] 
4. Ahmed, E.R., Islam, M.A., Alabdullah, T.T.Y., and bin Amran, A. (2018c). Proposed the pricing model as an alternative Islamic benchmark. Benchmarking: An International Journal, 25, 2892-2912. [Google Scholar] [CrossRef]
5. Ahmed, E.R., Alabdullah, T.T.Y., Shaharudin, M.S., & Putri, E. (2020). Further Evidence on the Link between Firm’s Control Mechanisms and Firm Financial Performance: Sultanate of Oman. Journal of Governance and Integrity, 4(1), 1-6. [Google Scholar] [CrossRef]
6. Ahmed, E.R., Alabdullah, T.Y., Islam, M.A., & Asmar, M. (2014). Sukuk Legitimacy: A New Measurement Based on Content Analysis, 16th Malaysian Finance Association Conference in SasanaKijang Central Bank of Malaysia, Kuala Lumpur, June 4-6, 2014. Available at: [Link]
7. Ahmed, E.R., Alabdullah, T.T.Y., Thottoli, M.M., & Maryanti, E. (2020). Does Corporate Governance Predict Firm Profitability? An Empirical Study in Oman. The International Journal of Accounting and Business Society, 28(1), 161-177. [Google Scholar] [CrossRef]
8. Ahmed, E.R., Aiffin, K.H.B., Alabdullah, T.T.Y., & Zuqebah, A. (2016). Zakat and Accounting Valuation Model. Journal of Reviews on Global Economics, 5, 16-24. [Google Scholar] [CrossRef]
9. Ahmed, E.R., Amran, A., Alabdullah, T.T.Y., & Islam, A. (2019). Testing The Legitimacy Index In Light Of Shariah Risks For  Sukuk Markets. European Proceedings of Social and Behavioural Sciences 88. Available at: [Link]
10. Ahmed, E.R., Islam, M.A., & Alabdullah, T.T.Y. (2018). The moderating role of Shariah supervisory board on sukuk pricing benchmark. International Journal of Excellence in Islamic Banking and Finance, 6. [Google Scholar]
11. Ahmed, E.R., Islam, A., Zuqibeh, A., & Alabdullah, T.T.Y. (2014). Risks management in Islamic financial instruments. Advances in Environmental Biology, 402-406. [Google Scholar]
12. Ahmed, E.R., Islam, M.A., Alabdullah, T.T.Y., & Amran, A.B. (2019). A qualitative analysis on the determinants of legitimacy of sukuk. Journal of Islamic Accounting and Business Research, 10(3), 342-368. [Google Scholar] [CrossRef]
13. Alabdullah, T.T.Y., Yahya, S., & Ramayah, T. (2014). Corporate Governance Mechanisms and Jordanian Companies’ Financial Performance. Asian Social Science, 10(22), 247. [Google Scholar] [CrossRef]
14. Ahmed, E. R., Alabdullah, T.T.Y., & Shaharudin, M.S. (2020). Approaches to Control Mechanisms and Their Implications for Companies’ Profitability: a Study in UAE. Journal of accounting Science, 4(2), 11-20. [Google Scholar] [CrossRef]
15. Ahmed, E.R., Rahim, N.F.A., Alabdullah, T.T.Y., & Thottoli, M.M. (2019). An examination of social media role in entrepreneurial intention among accounting students: a SEM study. Journal of Modern Accounting and Auditing, 15(12), 577-589. [Google Scholar] [CrossRef]
16. Ahmed, E.R., Alabdullah, T.T.Y., Amran, A., & Yahya, S.B. (2018). Indebtedness Theory and Shariah Boards: A Theoretical Approach. Global Business and Management Research, 10(1), 127-134. [Google Scholar]
17. Ahmed, E.R., Islam, M.A., & Alabdullah, T.T.Y. (2014). Islamic sukuk: Pricing mechanism and rating. Journal of Asian Scientific Research, 4(11), 640. [Google Scholar]
18. Alabdullah, T.T.Y., Al Fakhri, I., Ahmed, E.R., & Jebna A.K. (2021). Empirical Study Of The Influence Of Board Of Directors’ Feature On Firm Performance. RJOAS, 11(119), 137-146. [Google Scholar] [CrossRef]
19. Alabdullah, T.T.Y. (2021). Management accounting insight via a new perspective on the risk management − companies’ profitability relationship. International Journal of Intelligent Enterprise 7, In press. [Google Scholar]
20. Alabdullah, T.T.Y., Ahmed, E.R., and Nor, M.I. (2020). The World Declining Economy and Coronavirus Pandemic: Systems Should Be Continued. Russian Journal of Agricultural and Socio-Economic Sciences, 102, 89-96. [Google Scholar]
21. Alabdullah, T.T.Y. (2021). Ownership Structure and the Failure or Success of Firm Performance: Evidence from Emerging Market; Cross-sectional Analysis. International Journal of Business and Management Invention, 10(8). [Google Scholar]
22. Alabdullah, T.T.Y. (2019). Management Accounting and Service Companies’ Performance: Research in Emerging Economies. Australasian Accounting, Business and Finance Journal, 13(4), 100-118. [Google Scholar] [CrossRef]
23. Alabdullah, T.T.Y. (2017). Compensation committee, company board attributes, and company performance: The moderating effect of leadership position. Paper presented at the 2017 Wei International Academic Conference Proceedings, July 24-27, 2017, Business and Economics. [Google Scholar]
24. Alabdullah, T.T.Y. (2016a). Are Board Size And Ownership Structure Beneficial In Emerging Markets’ Firms? Evidence from Jordan. International Journal of Management & Information Systems (IJMIS), 20(3), 87-94. [Google Scholar] [CrossRef]
25. Alabdullah, T.T.Y. (2016d). Agency Theory Perspective: A Quantitative Study Of Accounting Performance Measures In Emerging Economies. ICTE Proceedings, New York. [Google Scholar]
26. Alabdullah, T.T.Y., Ahmed, E.R., & Nor, M.I. (2018). New Ideas from Management, Finance and Accounting Perspective: The Research for A New Link Between A Company’s Outcome and Risk Management. 5th International Conference on New Ideas in Management, Economics and Accounting. Available at: [Link]
27. Alabdullah, T.T.Y. (2016c). Corporate Governance from The Perspective of The Past and The Present and The Need to Fill an International Gap. Risk Governance & Control: Financial Markets & Institutions, 6(4), 96-101. [Google Scholar] [CrossRef]
28. Alabdullah, T.T.Y., Yahya, S., & Ramayah, T. (2014b). Corporate Governance Development: New or Old Concept? European Journal of Business and Management, 6(7), 312-315. [Google Scholar]
29. Alabdullah, T.T.Y. (2016b). The Performance of Companies and The Board’s Characteristics From the New Perspective of Manipulation Avoidance. Corporate Ownership & Control, 13(4), 279-286. [Google Scholar] [CrossRef]
30. Alabdullah, T.T.Y., Maryanti, E. (2021). Internal Control Mechanisms in Accounting, Management, and Economy: A review of the Literature and Suggestions of New Investigations. International Journal of Business and Management Invention, 10(9). [Google Scholar]
31. Alabdullah, T.T.Y., Ahmed, E.R. (2021). New Insights to Investigate the Impact of Internal Control Mechanisms on Firm Performance: A Study in Oman. Riset Akuntansi dan Keuangan Indonesia, 6(2). [Google Scholar]
32. Alabdullah, T.T.Y., Alfadhl, M.M.A., Yahya, S., & Rabi, A.M.A. (2014). The Role of Forensic Accounting in Reducing Financial Corruption: A Study in Iraq. International Journal of Business and Management, 9(1), 26. [Google Scholar] [CrossRef]
33. Alabdullah, T.T.Y., Ahmed, E.R., & Ahmed, R.R. (2021). Organization features and profitability: Implications for a sample of Emerging Countries. Journal of Accounting and Business Education, 5(2), 43-52. [Google Scholar] [CrossRef] 
34. Alabdullah, T.T.Y., Ahmed, E.R., Mohammed Almashhadani, M., Yousif, S., Almashhadani, H., Almashhadani, R., Putri, E. (2021). How Significantly to Emerging Economies Benefit From Board Attributes and Risk Management in Enhancing Firm Profitability? Journal of Accounting Science, 5(2), 104-113. [Google Scholar] [CrossRef]
35. Alabdullah, T.T.Y., Ahmed, E.R. (2020). A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment. International Islamic University Chittagong, 17(2), 9-26. [Google Scholar] [CrossRef]
36. Alabdullah, T.T.Y., Yahya, S., Nor, M.I., & Majeed, F.Q. (2016). An Investigation of Corporate Governance from A New Perspective: Examining the Financial Performance of Companies and The Impact of Executive Turnover. Corporate Board: Role, Duties & Composition, 12(1). [Google Scholar] [CrossRef]
37. Alabdullah, T.T.Y., Ahmed, E.R., & Muneerali, M. (2019). Effect of Board Size and Duality on Corporate Social Responsibility: What has Improved in Corporate Governance in Asia? Journal of Accounting Science, 3(2), 121-135. [Google Scholar] [CrossRef]
38. Alabdullah, T.T.Y., Ahmed, E.R. (2019). Board Diversity and Disclosure of Corporate Social Responsibility Link: A Study in Malaysia. Journal of Adv Research in Dynamic & Control System, 11(11), 1124-1131. [CrossRef]
39. Alabdullah, T.T.Y. (2018). The relationship between ownership structure and firm financial performance. Benchmarking: An International Journal, 25(1), 319-333. [Google Scholar] [CrossRef]
40. Alabdullah, T.T.Y., Laadjal, A., Ries, E., & Al-Asadi, Y.A.A. (2018). Board Features and Capital Structure in Emerging Markets. Journal of Advanced Management Science, 6(2), 74-80. [Google Scholar] [CrossRef]
41. Alabdullah, T.T.Y., Nor, M.I., & Ahmed, E.R. (2018). The determination of firm performance in emerging nations: Do board size and firm size matter? Management, 5(3), 57-66. [CrossRef]
42. Alabdullah, T.T.Y., Ahmed, E.R., & Nor, M.I. (2019). Do board characteristics provide more enhancement for firm financial performance? A corporate governance perspective. New challenges in corporate governance: Theory and practice, 89-91. [CrossRef] 
43. Alabdullah, T.T.Y & Ahmed, E.R. (2020). Audit Committee Impact on Corporate Profitability in Oman Companies: an Auditing and Management Accounting Perspective. Riset Akuntansi dan Keuangan Indonesia, 5(2), 121-128. [Google Scholar] [CrossRef]
44. Alabdullah, T.T.Y. and Ahmed, E.R. (2018). Corporate Governance: To What Extent it is important in the Arab Countries. International Journal of Science and Research, 7. Availale at: [Link]
45. Alabdullah, T.T.Y., Ahmed, E.R., & Abushammala, S. (2020). Growth of Companies: Empirical Study of the Companies Listed in Developing Economies. Journal of accounting Science, 4(2), 1-10. [Google Scholar] [CrossRef]
46. Alfadhl, M.M.A.F., Alabdullah, T.T.Y. (2013). Determinants of the Managerial Behavior of Agency Cost and Its Influential Extent on Performance: A Study in Iraq. International Journal of Humanities and Social Science, 3(6), 238-252. [Google Scholar]
47. Alfadhl, M.M.A., Alabdullah, T.T.Y. (2016). Agency Cost and Management Behavior: The Role of Performance as a Moderator. International Journal of Science and Research (IJSR), 5(1), 1858-1864. [Google Scholar] [CrossRef]
48. AL-Fakhri, I., Alabdullah, T.T.Y. (2021). The Evolution of a Robust and Reliable Brand Experience Scale in the Malaysian Context: An Empirical Evidence. Business Ethics and Leadership, 5(4), 59-67. [Google Scholar] [CrossRef]
49. Almashhadani, M. (2021). How Dose Corporate Governance Leverage Organizational Performance: A Survey With Suggestions And Notes For Further Research. Russian Journal of Agricultural and Socio-Economic Sciences, 3(111), 3-9. [Google Scholar] [CrossRef]
50. Almashhadani, M. (2020). Testing the effecting elements of R&D engineer’s inventively in design industrialization Sector: A study in Singapore. Journal of Information and Computational Science, 10(5), 252-258. [Google Scholar]
51. Almashhadani, M. (2021). A brief Review of Corporate Governance Structure and Corporate Profitability in Developed and Developing economy. International Journal of Business and Management Invention, 10(11), 42-46. [Google Scholar]
52. Almashhadani, M. (2021b). Internal Control Mechanisms, CSR, and Profitability: A Discussion. International Journal of Business and Management Invention, 10(12), 38-43. [Google Scholar]
53. Almashhadani, M. & Almashhadani, A.A. (2022). Corporation Performance and Corporate Governance System: An argument. International Journal of Business and Management Invention, 11(2), 13-18. [Google Scholar]
54. Alabdullah, T.T.Y., Asmar, M. (2022). Under COVID-19 Pandemic Impact: Do Internal Mechanisms Play Fundamental Role in Corporations’ Outcomes. Business Ethics and Leadership, 6(1), 84-92. [Google Scholar] [CrossRef] 
55. Audretsch, D. (2012). Entrepreneurship research. Management Decision, 50(5), 755-764. [Google Scholar] [CrossRef]  
56. Azmi, N., & Hashim, B. (2018). Relationship between Entrepreneurial Competencies and Small Firm Performance: Are Dynamic Capabilities the Missing Link? Academy of Strategic Management Journal, 17(2), 1939-6104. [Google Scholar]
57. Bae, T. J., Qian, S., Miao, C., & Fiet, J. O. (2014). The Relationship between Entrepreneurship Education and Entrepreneurial Intentions: A Meta–Analytic Review, 38(2), 217-254. [Google Scholar] [CrossRef] 
58. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage, 17(1), 99-120. [CrossRef] 
59. Bird, B. (2019). Toward a theory of entrepreneurial competency. Advances in Entrepreneurship, Firm Emergence and Growth, 21, 115-131. [Google Scholar] [CrossRef] 
60. Collis, D.J. (1994). Research Note: How Valuable are Organizational Capabilities? Strategic Management Journal, 15(S1), 143-152. [Google Scholar] [CrossRef] 
61. Dar, I. A., & Mishra, M. (2020). Dimensional Impact of Social Capital on Financial Performance of SMEs. The Journal of Entrepreneurship, 29(1), 38-52. [Google Scholar] [CrossRef] 
62. Dey, P. K., Malesios, C., De, D., Chowdhury, S., & Abdelaziz, F. ben. (2020). The Impact of Lean Management Practices and Sustainably-Oriented Innovation on Sustainability Performance of Small and Medium-Sized Enterprises: Empirical Evidence from the UK. British Journal of Management, 31(1), 141-161. [Google Scholar] [CrossRef] 
63. Etuk, R.U., Etuk, G.R., & Michael, B. (2014). Small and medium scale enterprises (SMEs) and Nigeria’s economic development. Mediterranean Journal of Social Sciences, 5(7), 656-662. [Google Scholar] [CrossRef] 
64. Galvão, A., Marques, C., & Ferreira, J.J. (2020). The role of entrepreneurship education and training programmes in advancing entrepreneurial skills and new ventures. European Journal of Training and Development, 44(6-7), 595-614. [Google Scholar] [CrossRef] 
65. Gümüsay, A.A. & Bohné, T.M. (2018). Individual and organizational inhibitors to the development of entrepreneurial competencies in universities. Research Policy, 47(2), 363-378. [Google Scholar] [CrossRef] 
66. Gyimah, P. & Adeola, O. (2021). MSMEs sustainable prediction model: A three-sector comparative study. Journal of the International Council for Small Business, 2(2), 90-100. [Google Scholar] [CrossRef] 
67. Haddad, M.I., Williams, I.A., Hammoud, M.S., & Dwyer, R.J. (2020). Strategies for implementing innovation in small and medium-sized enterprises. World Journal of Entrepreneurship, Management and Sustainable Development, 16(1), 12-29. [Google Scholar] [CrossRef] 
68. Han, S. (2012). Competence: commodification of human ability. International Perspectives on Competence Development, 66-78. [Google Scholar] [CrossRef] 
69. Handayati, P., Wulandari, D., Soetjipto, B.E., Wibowo, A., & Narmaditya, B.S. (2020). Does entrepreneurship education promote vocational students’ entrepreneurial mindset? Heliyon, 6(11), e05426. [Google Scholar] [CrossRef] 
70. Hernández-Sánchez, B.R., Sánchez-García, J.C., & Mayens, A.W. (2019). Impact of Entrepreneurial Education Programs on Total Entrepreneurial Activity: The Case of Spain. Administrative Sciences, 9(1), 25. [Google Scholar] [CrossRef] 
71. Ibidunni, A.S., Ogundana, O.M., & Okonkwo, A. (2021). Entrepreneurial Competencies and the Performance of Informal SMEs: The Contingent Role of Business Environment. Journal of African Business, 22(4), 468-490. [Google Scholar] [CrossRef] 
72. Ibtida, A., Pendidikan Guru, J.M., Made Darmawati, D., & Marini, A. (2020). Developing Entrepreneurship Education Model in Improving the Skills of Recycling of Elementary School Students. Al Ibtida: Jurnal Pendidikan Guru MI, 7(1), 117-131. [Google Scholar] [CrossRef] 
73. Ikram, A., Su, Q., & Asif Sadiq, M. (2016). Technical Efficiency And Its Determinants: An Empirical Study Of Surgical Instruments Cluster Of Pakistan. Journal of Applied Business Research (JABR), 32(2), 647-660. [Google Scholar] [CrossRef] 
74. Ismail, V.Y., Zain, E., & Zulihar. (2015). The Portrait of Entrepreneurial Competence on Student Entrepreneurs. Procedia – Social and Behavioral Sciences, 169, 178-188. [Google Scholar] [CrossRef] 
75. Jena, R.K. (2020). Measuring the impact of business management Student’s attitude towards entrepreneurship education on entrepreneurial intention: A case study. Computers in Human Behavior, 107, 106275. [Google Scholar] [CrossRef] 
76. Kanaan-Jebna, A. & Baharudin, A.S. (2013). Factors Affecting Small and Medium Enterprises Success: An Exploratory Study. Jurnal Teknologi, 64(3), 69-72. [Google Scholar] [CrossRef] 
77. Kanaan-Jebna, A. & Baharudin, A. S. (2014). The impact of market orientation on manufacturing SME performance in Malaysia with the moderating effect of e-commerce. Proceedings of the 6th International Conference on Information Technology and Multimedia, 169-172. [Google Scholar] [CrossRef]  
78. Kanaan-Jebna, A. & Baharudin, A.S. (2015a). The contingent impact of inter-organization communication on the relationships between market and entrepreneurial orientations and manufacturing SME performance in Malaysia. Journal of Scientific Research and Development, 2(10), 66-77. Available at: [Link]
79. Kanaan-Jebna, A. & Baharudin, A.S. (2015b). The impact of entrepreneurial orientation on manufacturing SME performance with the contingent effect of e-commerce in Malaysia. Advances in Environmental Biology, 9(5), 24-27. [Google Scholar]
80. Kanaan-Jebna, A., Baharudin, A.S., & Alabdullah, T.T.Y. (2022). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1-14. [Google Scholar] [CrossRef]
81. Khan, M.A., Zubair, S.S., Rathore, K., Ijaz, M., Khalil, S., & Khalil, M. (2021). Impact of Entrepreneurial Orientation Dimensions on Performance of Small Enterprises: Do Entrepreneurial Competencies Matter?Cogent Business & Management, 8(1). [Google Scholar] [CrossRef]
82. Merriam-Webster. (n.d.). Competency Definition & Meaning – Merriam-Webster. Available at: [Link]
83. Mitchelmore, S. & Rowley, J. (2010). Entrepreneurial competencies: A literature review and development agenda. International Journal of Entrepreneurial Behaviour & Research, 16(2), 92-111. [Google Scholar] [CrossRef]
84. Morris, M.H., Webb, J.W., Fu, J., & Singhal, S. (2013). A competency-based perspective on entrepreneurship education: Conceptual and empirical insights. Journal of Small Business Management, 51(3), 352-369. [Google Scholar] [CrossRef]
85. Nabi, G., LiñáN, F., Fayolle, A., Krueger, N., & Walmsley, A. (2017). The Impact of Entrepreneurship Education in Higher Education: A Systematic Review and Research Agenda. Academy of Management Learning & Education, 16(2), 277-299. [Google Scholar] [CrossRef]
86. Peterman, N.E. & Kennedy, J. (2017). Enterprise Education: Influencing Students’ Perceptions of Entrepreneurship. Entrepreneurship Theory and Practice, 28(2), 129-144. [Google Scholar] [CrossRef]
87. Qian, L.Y., Baharudin, A.S., & Kanaan-Jebna, A. (2016). Factors affecting the adoption of enterprise resource planning (ERP) on cloud among small and medium enterprises (SMES) in Penang, Malaysia. Journal of Theoretical and Applied Information Technology, 88(3). [Google Scholar]  
88. Rahman, S.A., Amran, A., Ahmad, N.H., & Taghizadeh, S.K. (2015). Supporting entrepreneurial business success at the base of pyramid through entrepreneurial competencies. Management Decision, 53(6), 1203-1223. [Google Scholar] [CrossRef]
89. Suroso, A., Anggraeni, A.I. (2017). Optimizing SMEs’ business performance through human capital management. European Research Studies Journal, 20(4), 588-599. [Google Scholar]
90. Solomon, G., Dickson, P.H., Solomon, G.T., & Weaver, K.M. (2008). Entrepreneurial selection and success: Does education matter? Journal of Small Business and Enterprise Development, 15(2), 239-258. [Google Scholar] [CrossRef]
91. Tehseen, S. & Ramayah, T. (2015). Entrepreneurial competencies and SMEs business success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 6(1), 50-61. [Google Scholar][CrossRef]