The moderating effect of culture on small firm performance: Empirical evidence

Abundant studies on the influential entrepreneurial factors that affect small firm performance exist. However, the inconsistent results on the relationship between entrepreneurial factors and small firm performance has led the authors to propose a contingency model in which the effects of individual determinants, external factors and firm characteristics on firm performance are moderated by culture. A cross-sectional study of questionnaire survey research design was conducted and data was generated from 182 entrepreneurs or owner-managers of small firms in both manufacturing and service industries. The questionnaires were distributed through drop-off and pick procedure of data collection. The findings indicate that neither culture nor its cultural dimension or components are significant in moderating the relationship between relationship between individual determinates, external factors and firm characteristics, and firm performance.