Cognitive capability as a bridge between beliefs and action in handicraft MSEs

The entrepreneurial orientation of handicraft MSE has been extensively studied. However, understanding their entrepreneurial actions requires analyzing the predictors of this behavior. Through the entrepreneurial mindset approach, this research analyzes the relationship between entrepreneurial beliefs and entrepreneurial orientation behaviors, where entrepreneurs´ cognitive capability has a mediating effect. The objective of this research was to analyze the mediating effect of cognitive capability on the relationship between entrepreneurial beliefs and entrepreneurial orientation among MSE handicraft entrepreneurs. The research was quantitative, and a structured questionnaire was conducted to 276 MSE handicraft entrepreneurs in the Mexican states of Michoacán, Oaxaca and Puebla. The results show that artisans´ entrepreneurial beliefs -in particular, innovation as a belief and behavior- directly influence innovative, proactive and competitive aggressiveness behaviors of the entrepreneurial orientation. It is also essential that cognitive capability not only independently shapes entrepreneurial behaviors, as their mediating effect on the beliefs-behaviors relationship is crucial for entrepreneurs to translate their beliefs into actions. JEL Codes: L26, R11, D22. Received: 15/07/2025. Accepted: 03/02/2026. Published: 29/04/2026.