THE ROLE OF GOVERNMENT BUSINESS SUPPORT SERVICES AND ABSORPTIVE CAPACITY ON SMES PERFORMANCE

Abstract

For economic sustainable development, SMEs are the key element. Without the progressive involvement of SMEs in the country’s GDP the economic growth is impossible. Government plays a crucial role in the development and smooth functionality of SMEs. Government business support services is a key factors for the betterment of SMEs. Government business support services is a tool for performance enhancement of SMEs. The main purpose of this research is highlight the importance of Government Business support services and absorptive capacity among SMEs. To address the research objective, this research proposed two hypothesis i.e. there is a significant association among GBSS and SMEs Performance and the association among GSBB and SMEs performance is moderated by absorptive capacity. A research model is also proposed and the future directions for the current model testing and validation.