scholarly journals Linking Two Dimensions of Entrepreneurial Orientation to Firm Performance: The Moderating Effect of Government’s Role

2017 ◽  
Vol 2 (2) ◽  
pp. 60
Author(s):  
Melvin Mojikon ◽  
Azizan Abdullah ◽  
Sofian Shamsuddin
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Two Dimensions ◽  
Strategic Orientation ◽  
Multidimensional Construct ◽  
Significant Relationships ◽  
Orientation Method ◽  
Competitive Aggressiveness ◽  
The Government

Entrepreneurial Orientation (EO) has been defined as a strategic orientation method, which employed by firms to identify ways and in creating a specific set of opportunities through various decision-making skills and entrepreneurial practices. Hence, this study was conducted based on the phenomenon experienced by a number of manufacturing firms in Sabah, Malaysia, within the context of Small and Medium-Sized Enterprises (SMEs). The EO, moreover, was deemed as a multidimensional construct encompassing two dimensions, namely competitive aggressiveness and pro-activeness. The study took place in Sandakan which is situated in Sabah. Based on the attributes of EO consisting of competitive aggressiveness and pro-activeness, the results were statistically demonstrated a significant relationships with firm performance. Whereas the government, which usually plays an important role, as the moderator, portrayed an insignificant and non-influential role in strengthening the relationships between these two EO dimensions and firm performance.

The Influence of Strategic Orientation on Firm Performance Mediated by Social Media Orientation at MSMEs

2018 ◽  
Vol 4 (08) ◽  
Author(s):  
Aekram Faisal ◽  
Asep Hermawan ◽  
Willy Arafah
Keyword(s):  
Social Media ◽  
Firm Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Two Dimensions ◽  
Strategic Orientation ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Technological Orientation ◽  
Media Orientation

The main purpose of this research is to analyze the influence of strategic orientation on firm performance mediated by social media orientation at MSMEs. Strategic orientation includes market orientation, entrepreneurial orientation, technological orientation, and learning orientation. The design used in this research is hypothesis testing by using Structural Equation Modeling (SEM). The respondent population of this research is all owners or managers of MSMEs located in DKI Jakarta area and have been running their business for at least 2 (two) years, and have used social media in their business. This study used a sample of respondents. The sampling was done by using non-probability sampling technique with purposive sampling method with 321 respondents. The results of this study show that only learning orientation has a direct effect on firm performance, while for market orientation and entrepreneurial orientation requires mediation role from social media orientation, and for technological orientation either directly or after mediation by social media orientation still has no effect significant to firm performance. The variable that has the greatest influence on firm performance after mediated by social media orientation is the entrepreneurial orientation. The results of this study provide insight for MSMEs practitioners, in order to use their strategic activities to increase the use of social media so as to improve the firm performance. This study has limitations, including not detailing the construct dimension of social media orientation into two dimensions of visibility and Sales and business development, and the sample of respondents from this study is only the perpetrators of MSMEs located in the area of DKI Jakarta. This can be a suggestion for further research. The model proposed in this study is to add the role of social media orientation as a mediation variable in the relationship between strategic orientation with firm performance.

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.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

scholarly journals Strategic orientation of servitization in manufacturing firms and its impacts on firm performance

2019 ◽  
Vol 119 (2) ◽  
pp. 292-316 ◽  
Author(s):  
Yong Lin ◽  
Jing Luo ◽  
Petros Ieromonachou ◽  
Ke Rong ◽  
Lin Huang
Keyword(s):  
Firm Performance ◽  
Customer Service ◽  
Online Survey ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Strategic Orientation ◽  
Content Type ◽  
Strategic Fit ◽  
Strategic Orientations ◽  
The Impact

Purpose The purpose of this paper is to provide implementation insights and implications regarding the strategic orientations of servitization by testing its impacts on firm performance, including financial performance and customer service performance. Design/methodology/approach Empirical research is conducted using an online survey disseminated to manufacturing firms in Southeast China. This research develops and verifies a strategic fit framework to understand the relationship between the strategic orientation of servitization and service innovation (SI), and its resulting impacts on firm performance. Findings The results show that service orientation (SO) has direct positive impacts on firm performance in the manufacturing sector. Customer orientation (CO) and learning orientation (LO) have no direct impact on firm performance, although they have indirect impacts on it via the mediating role of SI capability. Moreover, SO has a similar indirect impact on firm performance via SI capability. Research limitations/implications The survey focuses only on China; future studies should verify whether different cultural backgrounds impact the research results. Practical implications The results suggest that firms should build up three strategic orientations (SO, CO and LO) for implementing servitization to facilitate SI capability and, thus, to improve firm performance. Originality/value This research contributes to enhancing the theory of servitization by developing a strategic fit model of servitization and revealing the impact mechanism of servitization in the manufacturing sector.

scholarly journals Foreign Direct Investment and Local Firm’s Performance

2021 ◽  
Vol 6 (6) ◽  
pp. 216-222
Author(s):  
M. D. Wanjere ◽  
M. Ogutu ◽  
M. Kinoti ◽  
X. N. Iraki
Keyword(s):  
Firm Performance ◽  
Direct Investment ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Simple Linear Regression ◽  
Key Sectors ◽  
The Government ◽  
To Come ◽  
And Performance ◽  
Structured Questionnaire

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI and performance of local firms in Kenya . The study has sought to establish the overall effect of FDI on the performance-manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The study developed hypothesis which was tested using simple linear regression to establish the effect of FDI on performance of manufacturing firms. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with polices geared to attracting more FDI into the key sectors of the economy.

Entrepreneurial Orientation and Firm Performance: Is Product Quality a Missing Link?

2017 ◽  
Vol 8 (1) ◽  
Author(s):  
Yang Yang ◽  
Xiao Feng Ju
Keyword(s):  
Firm Performance ◽  
Product Quality ◽  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Linear Effect ◽  
Linear Relationships ◽  
Increase Product Quality ◽  
Competitive Aggressiveness ◽  
The Relationship ◽  
Contingency Framework

AbstractPrior literatures have argued that the relationship between entrepreneurial orientation and firm performance may be not as straightforward as expected. With EO–performance contingency framework, this study investigates how product quality mediates the relationship between EO and firm performance. Using survey data from 153 new ventures, we find that EO dimensions have non-uniform and non-linear, rather than merely linear, relationships with product quality. Specifically, the results reveal that innovativeness and autonomy may lead to superior product quality, however, risk-taking would decrease, not increase, product quality. Proactiveness has U-shaped, not inverse U-shaped, effect on product quality and competitive aggressiveness has U-shaped, not positive linear, effect on product quality. Our results enrich the EO-performance contingency framework and highlight the significance of concerning independent and unique effects of individual EO dimension.

scholarly journals How Multidimensional Approach of Entrepreneurial Orientation (EO) Effect Firm Performance: A Critical Review

2021 ◽  
Vol 12 (1) ◽  
pp. 30-40
Author(s):  
Didip Diandra ◽  
Ahmad Azmy
Keyword(s):  
Firm Performance ◽  
Critical Review ◽  
Entrepreneurial Orientation ◽  
Review Process ◽  
Sustainable Growth ◽  
Future Research ◽  
Business Organization ◽  
Multidimensional Approach ◽  
Integrative Framework ◽  
Competitive Aggressiveness

Research aims: This research aims to have a better understanding of relationship between EO and firm performance, a critical review of multidimensional approach to EO-firm performance is conducted in this paper.Design/Methodology/Approach: This is a qualitative research method which follow rigor of literature review and matrix review process from the selected papers. This paper aims to synthesize, evaluate the review, and then represent the dimension of EO on firm performance from multidimensional approach.Research findings: This study advances integrative framework to represent EO dimensions which explicates some pathways for entrepreneurs to implement EO on their business organization, else, in order to elevate sustainable growth. Also, this study concludes the most effective EO recipes for firm performance.Theoretical contribution/ Originality: This study does not only discuss the importance of EO in firm performance but also describe on how firms able to attain best performance in uncertain condition. The author stated innovativeness and competitive aggressiveness as the best EO recipes for enhancing firm performance.Practitioner/Policy implication: This study gives beneficial information to entrepreneurs about EO dimensions for enhancing firm performance.Research limitation/Implication: The study is limited to ten selected papers that confirms the application of EO dimensions on firm performance. Future research should explore more factors that explain EO-Firm relationship

Entrepreneurial orientation and performance: the interaction effect of customer capital

2014 ◽  
Vol 10 (1) ◽  
pp. 48-68 ◽  
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
Thurasamy Ramayah
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Interaction Effect ◽  
Entrepreneurial Orientation ◽  
Two Dimensions ◽  
Government Support ◽  
Cross Sectional ◽  
Content Type ◽  
Customer Capital ◽  
The Relationship

Purpose – The purpose of this study is to advance research on entrepreneurial orientation (EO), resource-based view (RBV), customer (relational) capital, and small and medium enterprises (SMEs) by examining how the interaction effect of customer capital shapes the relationship between EO and firm performance. Design/methodology/approach – This research is considered as a correlational rather than a casual study with 150 questionnaire returned from manufacturing SMEs. This cross-sectional study tested all hypotheses that are related to the research questions and use statistical software SPSS 17 to analyze data. Findings – The study found that a high customer capital strengthens the link between two dimensions of EO (innovativeness and risk taking) and weakens the link between another dimension of EO (proactiveness) and firm performance. Research limitations/implications – First, future studies would benefit from an enhanced development in the measurement of EO dimensions, which relies on richer and more refined conceptualizations. Second, a single informant who was asked to evaluate EO may potentially increase the degree of subjectivity and bias in the responses. Obtaining more than one respondent for the survey from each organization is always highly desirable. Practical implications – The results of the current study cover the limitation of the previous study by independently examining the moderating effect of customer capital as an intangible resource in the relationship between innovativeness and risk taking on firm performance. The paper expands this line of work by adding the idea that the intangible resources of a firm are more likely to contribute to sustaining superior firm performance when they are used with other factors simultaneously. Social implications – Environmental factors, such as government financial aid and protection of organizations outside the industry, may affect the relationship between SMEs and the agents. Establishing extra ties between Iranian firms and agents may be expensive for Iranian manufacturing firms, and they may not be able to create these ties without government support. Originality/value – A research gap exists in understanding how customer capital operates and endows benefits to firms that are beyond their start-up phase and are embarking on international activities. The current study tries to overcome a number of limitations of the previous framework by combining RBV and customer capital. Particularly, “the RBV's lack of specificity have raised questions as to its status as a legitimate theory, and make it difficult to design and test empirically.”

scholarly journals ENTREPRENEURIAL ORIENTATION AND BUSINESS PERFORMANCE IN RETAIL PHARMACIES: EVIDENCE FROM BAHRAIN

2020 ◽  
Vol 8 (5) ◽  
pp. 178-187
Author(s):  
Shaju George ◽  
Safaa Elrashid
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Empirical Support ◽  
Two Dimensions ◽  
Superior Performance ◽  
Research Approach ◽  
Significant Positive Association ◽  
Retail Pharmacy ◽  
Competitive Aggressiveness

Purpose of the study: The purpose of this study is to examine the influence of the five dimensions of entrepreneurial orientation (EO): innovativeness, autonomy, risk-taking, proactiveness, and competitive aggressiveness on the business performance of retail pharmacies. Methodology: This study used a quantitative research approach. The data from 136 pharmacists operating in different retail pharmacies in the Kingdom of Bahrain were collected through a structured questionnaire. Multiple regression was applied to test the five hypotheses that were developed based on the literature review by using SPSS. Main Findings: The study found that there is a significant positive association between pharmacy business performance and two dimensions of EO: innovativeness and risk-taking. However, autonomy, proactiveness, and competitive aggressiveness have no significant association with the business performance of retail pharmacies in Bahrain. Yet, the findings showed that not all EO dimensions have a significant relationship with business performance; therefore, the study suggested that retail pharmacies must be careful while executing EO. Applications of this study: The findings of this study is anticipated to help retail pharmacies to develop their business, as it may offer significant insight and empirical evidence for pharmacy owners or decision-makers to adopt entrepreneurial orientation in order to achieve superior performance and growth in their businesses. Novelty/Originality of the Study: This study contributes to the entrepreneurial orientation literature in the retail pharmacy sector. The findings of this study show that the entrepreneurs in the retail pharmacy sector need to focus merely on two dimensions of EO (Innovativeness and risk-taking) to yield better performance. Moreover, this study is one of the limited studies that provide empirical support for the influence of EO on the retail pharmacy industry. This is a pioneering empirical study to examine the influence of relevant dimensions of entrepreneurial orientation on the business performance of retail pharmacies in the gulf countries and the Kingdom of Bahrain in particular.

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