scholarly journals Modelling the relationships between the business environment, entrepreneurial orientation and employment growth amongst small, medium and micro-enterprises in South Africa

2021 ◽  
Vol 52 (1) ◽  
Author(s):  
Oluwafemi J. Dele-Ijagbulu ◽  
Menisha Moos ◽  
Chukuakadibia Eresia-Eke
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Online Survey ◽  
Employment Growth ◽  
Business Environment ◽  
Practical Significance ◽  
Environmental Dynamism ◽  
Competitive Aggressiveness ◽  
Environmental Hostility

Purpose: This study seeks to model the nexus between environmental dynamism, environmental hostility, five sub-dimensions of entrepreneurial orientation (EO) (innovativeness, pro-activeness, risk-taking, competitive aggressiveness and autonomy) and employment growth.Design/methodology/approach: Based on a positivist research philosophy, this study adopts a quantitative methodological approach, which entails an online survey. Data is obtained through probability sampling of 1031 small, medium and micro enterprise businesses (SMMEs) and analysed using structural equation modelling (SEM).Findings/results: The findings reveal only four dimensions namely proactive-innovation, risk-taking, competitive aggressiveness, and autonomy as statistically visible, which is contrary to five as postulated in theory. In addition, it was found that the relationships between environmental hostility, environmental dynamism and the dimensions of EO were statistically significant. Conversely, the relationships between the dimensions of EO and employment growth were statistically insignificant except within the category of medium-sized businesses (MSBs) in which proactive-innovation and competitive aggressiveness indicated a statistically significant negative association with employment growth.Practical implications: A dynamic and hostile environment is essential to increased entrepreneurial intensity among SMMEs, but the size of the firm can be a determinant in their capacity for employment generation.Originality/value: The association between EO and employment growth has attracted less attention in research despite its theoretical and practical significance. Furthermore, studies on the antecedents of EO such as its relationship with environmental dynamism and hostility are limited. Following a multidimensional approach to EO, this empirical study illustrates its relationship with employment growth incorporating the component of the business environment. Regarding the plausibility of these associations, it distinguishes MSBs from the other categories of businesses within the SMME cohort.

scholarly journals Entrepreneurial Orientation in Micro and Small Enterprises of Traditional Food Centers in Bandung, West Java

2019 ◽  
Vol 10 (3) ◽  
pp. 167-174
Author(s):  
Margo Purnomo ◽  
Erwin Permana ◽  
Achsanul Qosasi ◽  
Ahmad Fajri Febrian ◽  
Asep Miftahuddin
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Organizational Level ◽  
Small Enterprises ◽  
Traditional Food ◽  
Competitive Aggressiveness ◽  
Micro And Small Enterprises

The research objective was to analyze the determninant factors of Entrepreneurial Orientation (EO) in the Micro and Small Enterprises (MSEs) of the traditional food centers in Bandung. It used the EO dimension at the organizational level. Five dimensions were used to measure the EO level, namely risk-taking, innovativeness, competitive aggressiveness, proactiveness, and autonomy. The questionare’s was distributed to eight MSEs in Bandung. The sample size is 100 employee Structural Equation Model (SEM) analysis techniques with Partial Least Square (PLS) was used to test the samples. This research shows that the EO level in the micro and small enterprises in the traditional food centers in Bandung is at a moderate level. Although EO of MSEs in the traditional food centers in Bandung is in the moderate category, the results of testing on the EO model find out that each EO dimension forms a significant EO construct. The four dominant and recommended dimensions forming an EO construct in MSEs are risk-taking, innovativeness, competitive aggressiveness, and proactiveness. Among the four dimensions, risk-taking is the dominant dimension. It indicates that courage in taking risks in MSEs is a natural characteristic of the EO in the traditional food centers in Bandung.

scholarly journals Examining the Moderating Effect of Environmental Hostility on the Entrepreneurial Orientation -Performance Relationship

2017 ◽  
Vol 8 (6(J)) ◽  
pp. 6-18
Author(s):  
Neneh Brownhilder
Keyword(s):  
South Africa ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Moderating Effect ◽  
Business Strategies ◽  
Negative Consequences ◽  
Business Environments ◽  
Competitive Aggressiveness ◽  
Environmental Hostility ◽  
Positive Effect

Abstract: While the EO-performance nexus has received extensive attention in entrepreneurship literature, other studies suggest that the magnitude of this relationship is dependent upon the external environment and internal organizational processes. The objective of this study was to measure the effects of EO (innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness) on SME performance, as well as to examine the moderating effect of environmental hostility on the EO-performance relationship in South Africa. The study showed thatwhile innovativeness and proactiveness does not have a significant effect on SME performance; risk taking propensity, competitive aggressiveness, and autonomy have a significant positive effect on SME performance. It was also seen that while the risk taking-performance relationship is negatively moderated by environmental hostility, the competitive aggressiveness-performance relationship is positively moderated by environmental hostility. This suggest the need for SMEs to always align their business strategies with appropriate EO dimensions to mitigate some of the negative consequences of operating in hostile business environments and improve the performance of their businesses. Keywords: Entrepreneurial orientation, SME performance, Environmental Hostility, South Africa

scholarly journals How does entrepreneurial orientation affect the business performance of coffee shop MSMEs in Indonesia?

2021 ◽  
Vol 306 ◽  
pp. 03011
Author(s):  
M. Khalifatul Ardhi ◽  
Jangkung Handoyo Mulyo ◽  
Irham
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Urban Areas ◽  
Structural Equation ◽  
Business Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Coffee Shop ◽  
Competitive Aggressiveness

The increasing growth of the coffee shop business with a fast and attractive expansion as a food & beverage industry in urban areas of Indonesia, especially Special Region of Yogyakarta has led to business competition between micro, small, and medium enterprises (MSMEs) which are required to use their ability to adapt, be competitive and improve business performance. The entrepreneurial orientation is claimed to important contributions to business success. This study aims to analyze the effect of entrepreneurial orientation on business performance. Partial Least Square-Structural Equation Modeling (PLS-SEM) analysis method is used to examine the effect of five dimensions of entrepreneurial orientation (innovative, proactive, risk-taking, autonomy, and competitive aggressiveness) on business performance. This research was conducted at 80 coffee shop MSMEs with the sampling technique using convenience sampling. The results showed that the dimensions of proactive, autonomy, and competitive aggressiveness were found to have a positive and significant effect on business performance, while the innovative and risk-taking dimensions did not affect significantly on business performance.

The Relationship Between Environmental Hostility and Entrepreneurial Orientation of Small Businesses

2020 ◽  
Vol 6 (2) ◽  
pp. 347-362
Author(s):  
Oluwafemi Dele-Ijagbulu ◽  
Menisha Moos ◽  
Chukuakadibia Eresia-Eke
Keyword(s):  
South Africa ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Early Stage ◽  
Business Environment ◽  
Partial Least Square ◽  
Least Square ◽  
Entrepreneurial Activity ◽  
Environmental Hostility

Declining entrepreneurship as indicated by low total early-stage entrepreneurial activity (TEA) and high business failure is unacceptable in any economy. This predicament is indicative of South Africa’s business environment as well as the entrepreneurial disposition of firms operating within it. However, the factors precipitating entrepreneurial behaviour among small firms are yet to be fully comprehended and the environment as a motivation for entrepreneurship among these firms is yet to be examined thoroughly. Furthermore, research focus on the antecedents of entrepreneurial orientation (EO) is limited, even as EO has been considered as an aggregated construct repeatedly with inadequate attention directed at its independent constituents. In response to these concerns, this study investigates the relationships between environmental hostility (EH) and the individual components of EO among small businesses in South Africa. Using a quantitative methodological approach, the study conducts a survey, and analyses data obtained through random sampling. Through exploratory factor analysis (EFA) and partial least square structural equation modelling (PLS-SEM), it is discovered that only four components of EO are statistically recognisable, contrary to five as widely acknowledged in literature. Positive associations were also revealed between EH and each of these dimensions to varying degrees. These findings underline the necessity for entrepreneurial action along the lines of risk-taking, proactive-innovativeness, competitive aggressiveness and autonomy among small businesses in South Africa, given the hostile environment of her small business sector.

scholarly journals The entrepreneurial orientation - Performance relationship: A South African small business perspective

2015 ◽  
Vol 7 (1) ◽  
pp. 36 ◽  
Author(s):  
Tony Matchaba-Hove ◽  
Shelley Farrington ◽  
Gary Sharp
Keyword(s):  
Small Business ◽  
South African ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Business Performance ◽  
Eastern Cape ◽  
Five Dimensions ◽  
Competitive Aggressiveness

<p>The high failure rate among small businesses in South Africa has created an urgent need to identify strategies that will improve their levels of performance. The purpose of this study was to investigate the relationship between entrepreneurially orientated strategies implemented by small businesses in the Eastern Cape and the influence of these strategies on business performance. Entrepreneurial orientated strategies were assessed in terms of the five dimensions of entrepreneurial orientation, namely innovativeness, proactiveness, competitive aggressiveness, risk-taking and autonomy. Business performance was assessed in terms of profitability and growth. A measuring instrument was developed based on valid and reliable items. Statistical techniques including descriptive statistics, Pearson’s product moment correlations and structural equation modelling, were performed on data gathered from 317 small business enterprises. The results of this study showed that the more small businesses implement the strategies of proactive innovativeness, competitive aggressiveness, and autonomy, and the less risk-taking their strategies are, the more likely their businesses are to be successful.</p><p><strong>Key words:</strong> Small business, Entrepreneurship, Entrepreneurial orientation</p>

scholarly journals EFFECT OF ENVIRONMENTAL UNCERTAINTIES ON THE RELATIONSHIP OF ENTREPRENEURIAL ORIENTATION AND BUSINESS SUCCESS: CHILD CARE CENTRES IN MALAYSIA

2020 ◽  
Vol 3 (10) ◽  
pp. 30-42
Author(s):  
Hong Hooi Tan
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Online Survey ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Survey Method ◽  
Future Research ◽  
Business Success ◽  
Strategic Orientations

The main objective of this study is to examine the moderating role of environmental uncertainties on the relationships between entrepreneurial orientation (EO) being innovativeness, risk-taking, and pro-activeness and performance of childcare centres in Malaysia. Data were collected from the childcare centres operating in the whole of Malaysia using a quantitative survey design. The study adopted a cluster sampling, respondents were selected from the population of 3,490 childcare centres in Malaysia, and questionnaires were distributed through the postal method and online survey method. A total of 117 usable questionnaires were returned, giving a response rate of 29.7%. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to test the study hypotheses. The findings revealed that Entrepreneurial orientations are important strategic orientations for the performance of childcare centres in Malaysia. The findings of the study supported the hypothesized positive relationship between innovativeness and pro-activeness to business success but no relationship between risk-taking and business success. For the moderating effect, perceived environmental uncertainties were found to have a moderating effect on innovativeness but not to risk-taking and pro-activeness. The findings of this study provide important insights to owners/managers of childcare centres in Malaysia, policymakers, and researchers to further understand the effects of EO on the performance of childcare centres in Malaysia. Owners in the childcare centres in Malaysia should also be encouraged to improve their entrepreneur orientation which may increase their performances. Finally, the study implications, limitations as well suggestions for future research are discussed.

Should Fast-Food Franchisees Pursue Entrepreneurial Orientation?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ehsan Asgharian ◽  
Misagh Tasavori ◽  
Jim Andersén
Keyword(s):  
Firm Performance ◽  
Significant Role ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Fast Food ◽  
Business Systems ◽  
Unidimensional Construct ◽  
Different Dimensions ◽  
Competitive Aggressiveness ◽  
The Impact

Abstract Although it is widely accepted that entrepreneurial orientation (EO) improves firm performance, scholars have advised that particular attention should be paid to the context. In this research, we investigate a less explored context of franchising where business systems and procedures are usually dictated to franchisees by franchisors. Therefore, whether a franchisor should allow franchisees to pursue EO (innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy) is not clear. In the context of franchising, the majority of prior studies have mainly focused on the employment of EO as a unidimensional construct and at the franchisor level. In this research, we take a bottom-up perspective and evaluate the impact of different dimensions of EO on franchisees’ performance. Our analysis of a multi-group of 183 restaurant franchisees located in Sweden and Iran reveals that only the pursuit of proactiveness and competitive aggressiveness improves a franchisee’s performance and other dimensions do not play a significant role in improving performance in this context.

Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Dharma Tuah Putra Nasution ◽  
Ahmad Rafiki ◽  
Adelina Lubis ◽  
Yossie Rossanty
Keyword(s):  
Knowledge Management ◽  
Risk Taking ◽  
Significant Relationship ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Quantitative Methodology ◽  
Cross Sectional Survey ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to examine the dimensions of entrepreneurial orientation (EO), knowledge management process (KMP) and dynamic capability (DC) toward the adoption of electronic commerce (e-commerce) of small and medium enterprises (SMEs) in North Sumatera. Design/methodology/approach This study used a quantitative methodology using Smart PLS of structural equation model. A survey is done by distributing the questionnaires to the respondents (owner-managers) of SMEs across sectors. Using a convenient sampling technique, 131 respondents were selected. Using a cross-sectional survey design, 11 hypotheses were tested. Findings It is found that both innovativeness and proactiveness of EO have a significant relationship with e-commerce adoption (EA), while the risk-taking of EO is found as insignificant. Both risk-taking and proactiveness of EO are significantly related to KMP, but innovation of EO is found to be insignificant. Moreover, KMP significantly mediates the relationship between risk-taking and proactiveness of EO and EA, while KMP insignificantly mediates the relationship between innovativeness of EO and EA. Finally, it is found that DC has a significant relationship in EA. Originality/value By using the resource based-theory, the study on the decision of EA by SMEs is conducted which focuses on a number of internal and external factors influencing the adoption decision. This differs from other studies using theories of the technological, organizational and environmental, theory of acceptance and use of technology, theory of planned behavior, theory of reasoned action and others which emphasized on the implementation and usage of EA.

Intrapreneurship to engage employees: role of psychological capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jatin Pandey ◽  
Manish Gupta ◽  
Yusuf Hassan
Keyword(s):  
Work Engagement ◽  
Structural Equation ◽  
Online Survey ◽  
Psychological Capital ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
Survey Responses ◽  
The Relationship

PurposeIntrapreneurship is gaining traction in organizations to buckle up for the dynamic business environment. Scholars have argued that intrapreneurship increases positivity at work and helps employees attach themselves better with their job. However, empirical evidence suggests that these relationships do not exist. The objective of this paper is to examine the mediating role of psychological capital (PsyCap) in the relationship between intrapreneurship and work engagement.Design/methodology/approachData were collected through an online survey. Responses from 309 employees working in different industries in India were analysed. Structural equation modelling (SEM) was used to analyse the hypothesized relationships.FindingsThe results show that there exist positive relationships among intrapreneurship, psychological capital (PsyCap) and work engagement. Further, it was observed that the PsyCap partially mediates the relationship between intrapreneurship and work engagement.Practical implicationsManagers may not only encourage intrapreneurial behaviour in their organizations but also ensure that the employees are psychologically capable (high on PsyCap). It would enable the employees to engage themselves wholeheartedly into their work.Originality/valueTo the best of the authors' knowledge, this study is one of its kinds to relate intrapreneurship with PsyCap and work engagement.

scholarly journals Relevance of Entrepreneurial Orientation and its Effect on the Performance of Smes in Asaba, Delta State

2021 ◽  
Vol 9 (9) ◽  
pp. 13-30
Author(s):  
Marcus EKURE ◽  
EDWARD OGBONNIA ELEJE
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Chi Square ◽  
Cross Sectional ◽  
Tertiary Institutions ◽  
Analytical Technique ◽  
Medium Scale ◽  
Competitive Aggressiveness ◽  
Entrepreneurial Training ◽  
The Relationship

The study investigated the relevance of entrepreneurial orientation on the performance of Small and Medium scale Enterprises (SMEs) in Delta State. Other specific objectives are to determine the relationship between proactiveness and SMEs performance; to assess the connection between competitive aggressiveness and SMEs performance; to ascertain the connection between risk-taking and SMEs performance. A cross sectional research design was adopted for the study. A structured questionnaire was developed to elicit data from respondents for the study. This study specifically focused on relationship between proactiveness, competitive aggressiveness, innovativeness and the relationship between risk-taking and SMEs performance. All the staff of selected SMEs were sampled. The analytical technique used for hypotheses testing was the chi-square, using Stata version 13. Findings revealed that, all variables used in this study had a significant and positive relationship with performance of SMEs. Thus, the study concludes that entrepreneurial orientation has a significant relationship with performance of Small and Medium scale Enterprises (SMEs). This study therefore recommends amongst others that more intensive entrepreneurial training and practice be done by students in tertiary institutions as there seems to be no job waiting for graduates among the teeming youths we have in Nigeria today.

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