The effect of the entrepreneurial process on decision-making effectiveness: Evidence from Lebanese small and medium enterprises

Type of the article: Research ArticleAbstractIn Lebanese SMEs, characterized by the dominance of informal networks and weak organizational structures, a lack of clarity stemming from ambiguous roles and processes creates a gap in understanding among stakeholders. This situation is significant for the entrepreneurial process, which depends on recognizing and seizing opportunities, as it hampers decision-making. This paper analyzes the influence of four dimensions of entrepreneurial process on the effectiveness of decision-making, drawing on evidence from SMEs in North Lebanon. A deductive quantitative approach was adopted, based on a questionnaire administered to SME managers and executives. Data were collected using a cross-sectional design with a convenience sample of 310 respondents. The results show that the effect of network transformation is the strongest on decision-making effectiveness (β = 0.836, p lt; 0.001), followed by adaptive recombination (β = 0.103) and value conversion (β = 0.124). Relational reproduction has a small but significant negative effect on decision-making effectiveness (β = –0.038, p = 0.005).Entrepreneurial process dimensions affect decision-making in Lebanese SMEs, with network transformation being the most influential, urging managers to expand beyond traditional relationships. Adaptive recombination and value conversion boost agility by reconfiguring resources. Results demonstrate the entrepreneur’s ability to transform opportunities into operational value and support effective decision-making. The negative impact of relational reproduction warns against over-relying on closed networks. This study encourages Lebanese SMEs to be more adaptive and reflective in managing networks and resources, emphasizing openness and flexibility. A proactive entrepreneurial mindset is critical for adapting resources and creating value through strategic decision-making.