Entrepreneurial Orientation and Business Performance of Manufacturing Sector Small and Medium Scale Enterprises of Punjab Pakistan (original) (raw)
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The Impact of Entrepreneurial Orientation on SME Performance in Pakistan: A Qualitative Analysis
— Small and medium enterprises (SMEs) are an important component of an economy. A progressing and flourishing SME sector helps an economy in overcoming macroeconomic problems of a country. This asserts importance of performance evaluation of SMEs. Entrepreneurial orientation (EO) is a firm's readiness towards accepting entrepreneurial practices, policies, and decision-making. EO has five dimensions that are innovativeness, proactivity, risk-taking, autonomy and competitive aggressiveness. This paper proposes a framework that links elements of EO with performance evaluation of SMEs. An evaluation of these factors may help decision-makers in improving business practices that may, in turn, positively influence the performance of SMEs.
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The Sports industry has played a vital role in the economy of Pakistan. The recent high failure rate of small and medium businesses in the sports sector has necessitated the need to identify strategies that will help to improve their performance. The primary objective of this study is to establish the level of entrepreneurial orientation of small and medium enterprises in the sports sector of Pakistan. Simple random sampling method was used to gather 153 usable questionnaires from small and medium businesses in Sialkot, Pakistan. An exploratory factor analysis was conducted to determine the validity of the measuring instrument. Cronbach's alpha coefficients were calculated to assess the reliability of the measuring instrument. Multiple regression analysis was performed to analyze the hypothesized relationships. The results of this study have shown that the dimensions of entrepreneurial orientation (i.e., pro-activeness, innovativeness, and competitive aggressiveness) have a significant positive influence on the success of the business, whereas the dimensions (i.e., autonomy and risk-taking) have no influence. The study has implications for both researchers and small and medium business owners.
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This study set out to assessing the influence of entrepreneurial orientat ion and SMEs’ performance. A descriptive research design was adopted to gather information from registered SMEs as captured by Corporate Affairs Commission in Nigeria. The data gathered were sourced via the administration of structured questionnaire to 436 owner - managers of SMEs. The study employed the use of structural equation modelling of AMOS 22 to test the hypothesis. The results from statistical analysis indicates a significant impact from all dimensions of entrepreneurial orientation, such as busines s opportunity, inclusive innovation, dynamic operations, value adding activity, risk taking and innovative decisions have significant influence on SMEs performance.
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This study investigates the impact of five dimensions of entrepreneurial orientation (risk-taking, proactiveness, innovativeness, aggressiveness, and autonomy), an independent variable, on SMEs' organizational performance in Bangladesh. The study surveyed 237 SMEs' owners (out of 300, with a response rate of 79%) in Gazipur district, Bangladesh. Cronbach's alpha (α) value of 0.70 was used to examine the reliability of the constructs in this study. Drawing from earlier research, a five-point Likert scale questionnaire was constructed to assess the links between entrepreneurial orientation and SMEs' organizational performance. The dependent variable in this study was SMEs' organizational performance, which was based on business growth, change in number of employees, profitability, and sales growth. The hypotheses were tested using SPSS with a 95% confidence interval. The results suggest that all five dimensions of entrepreneurial orientation positively affect the organizational performance of SMEs in Bangladesh. It is evident that proactiveness (β-value = 0.330) has the greatest effect on SMEs' organizational performance, and competitive aggressiveness has the least effect (β-value = 0.230). The independent variables explain a significant proportion of the variability observed in SMEs' organizational performance (R2 = 57.4%). The research outcomes offer valuable implications for entrepreneurs, policymakers, and academics.
Effect of Entrepreneurial Orientation on the Performance of Small Enterprises
Several studies have revealed the importance of the entrepreneurial orientation (EO) concept in improving firm performance since its inception. However, because of the complications that small businesses face, there are still concerns about whether EO can improve their performance. This study investigated the effect of EO on the performance of small enterprises in Abuja, Nigeria. The objective of the study is to specifically assess the effect of the dimensions of EO viz. autonomy, innovativeness, proactiveness and risktaking on the business performance of small enterprises in Abuja. The study made use of a survey research design to target a population of 2750 small enterprises in Abuja. Using the Taro Yamane formula, a sample size of 349 was obtained. Of the questionnaires randomly issued to the small enterprises, 338 were completed and returned representing a 96.84% response rate. The questionnaires contained closed-ended questions that were rated on a 5-point Likert scale. The data was then analysed using descriptive statistics and multiple linear regression. Arising from the result, the regression model was significant at 0.000 with the calculated value greater than the critical value (16.910>2.399), hence, the null hypothesis was rejected. It was concluded that, overall, EO has a significant effect on business performance. However, of the dimensions tested, autonomy is insignificant, while innovativeness, proactiveness and risk-taking are significant. The study recommends that entrepreneurial development initiative that aims at building the EO dimensions of small enterprises should focus on innovativeness, proactiveness and risk-taking, rather than autonomy.
Entrepreneurial Orientation vs. Innovativeness of Small and Medium Size Enterprises
This study aims to examine the role of entrepreneurial orientation (entrepreneurship orientation) in innovation level among Small and Medium Size Enterprises (SMEs). A questionnaire survey was conducted among 137 firms in the Podlaskie Region. Three hypotheses related to entrepreneurial orientation and innovativeness level were examined by Structural Equation Modeling (SEM). The relation between two constructs of entrepreneurial orientation and innovativeness, that is proactiveness and risk taking were analyzed. The research results show that proactiveness has a significant positive total effect on improving innovativeness. The findings suggest, in contrast to the strategic orientation literature, that risk taking deters enterprises from organizational innovation. The results confirmed the significantly higher impact of the risk taking as an intermediate variable on the innovation through the mediator of proactivity. This work examines the relations between entrepreneurial orientation and innovativeness, thus contributes to the strategic orientation literature.
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This paper identifies the mediating role of innovation and moderating role of size of enterprise on the relationship between entrepreneurial orientation and performance of Micro and Small Enterprises (MSEs). For the purpose of this study, the necessary data is collected from 384 MSE's operating in Punjab province, Pakistan. Initially the data are analyzed using SPSS 22 and then, for the development of structure equation modeling, Smart PLS-3 is used. Two aspects of entrepreneurial orientations; namely risk taking and pro-activeness are analyzed and innovation is considered as mediating variable. The major contribution of the study is to identify any moderating effect of size of the enterprise on the relationship between entrepreneurial orientation, innovation and performance of MSEs. These elements basically show the contribution that is made by the innovation and performance of the MSE's. The results reveal that the size of enterprises moderated the relationship between risk taking and performance, pro-activeness and performance as well as innovation and performance.
The Impacts of Entrepreneurial Orientation on Organizational Performance: Study of Pakistani SMEs
Sarhad Journal of Management Sciences, 2015
Entrepreneurial orientation has been the area of interest by many researchers in the field of entrepreneurship and management. However, empirical evidences reveal that most of these studies have been conducted in developed countries and have reported mixed results. Analyses on the subject in developing countries are lacking. This study investigates the role of entrepreneurial orientation on firm performance. This study used survey data from a random sample of 213 small and medium sized enterprises (SMEs) located in Sialkot region, Province of Punjab Pakistan. The findings support the hypothesis that entrepreneurial orientation associates with firm performance. This study contributes to the body of knowledge by taking EO as five dimensional construct (innovativeness, risk taking, proactiveness, competitive aggressiveness, autonomy) rather three dimensional construct. and organizational performance comprising of non financial indicators such as customer satisfaction, employees satisfaction, service quality, innovation and growth. The study offers suggestions to policy makers and future directions.
Entrepreneurial Orientation, Business Strategy, and Small Medium Enterprise's Performance
International Journal of Academic Research in Business and Social Sciences, 2018
There are determining factors that are directly related to the generation of opportunities that maximize performance of the small medium enterprise (SME). This research paper focuses on a quantitative paradigm to measure the entrepreneurial orientation, business strategy and SMEs' performance as variables. A causal model was developed from the literature, from which a set of hypotheses was posed and a questionnaire was made. A sample of 95 small and medium entreprise in Denpasar was subject to the questionnaire. The findings suggest, entrepeneurial orientation have the most important effect on marketing performance rather than business strategy. The results are based on a rather small sample of exporting SMEs in Denpasar Bali; therefore, the generalizability of the results cannot be assured. But this study will sheds more light on the little researched themes of entrepreneurial orientations in the context of SMEs.