DefinePK

Abstract

In today’s resource-constrained and uncertain environments, small and medium-sized enterprises (SMEs) must rely on non-traditional strategic behaviors to survive and grow. Despite increasing interest in entrepreneurial resourcefulness, limited empirical research has explored how frugality, bricolage, and improvisation jointly influence venture performance, especially in developing economies such as Pakistan. This study addresses this gap by examining the individual and combined effects of these entrepreneurial behaviors on SME performance, while also investigating the mediating role of innovative work behavior (IWB) and the moderating effect of entrepreneurial orientation (EO). Data were collected from a sample of 270 SME owners and managers operating across various sectors in Pakistan. The study employed the PROCESS Macro in SPSS to test a mediation-moderation model. Results reveal that frugality, bricolage, and improvisation each have a significant positive effect on venture performance. Additionally, innovative work behavior partially mediates these relationships, highlighting its role in translating entrepreneurial resourcefulness into performance outcomes. The moderating analysis further indicates that entrepreneurial orientation strengthens the relationship between the predictors and IWB, demonstrating the importance of a proactive and risk-taking mindset in enhancing the effectiveness of resource-constrained strategies. Grounded in the Resource-Based View (RBV) and dynamic capability theory, the study contributes to a deeper understanding of informal entrepreneurial behaviors and their strategic value in emerging market contexts. Practically, the findings offer actionable insights for SME leaders, support organizations, and policymakers aiming to foster resilience and innovation in resource-limited settings. By positioning frugality, bricolage, and improvisation as key behavioral capabilities, this study underscores their significance in achieving sustainable venture performance.