scholarly journals Environment Uncertainty – Business Performance Relationship: Mediating Effect of Entrepreneurial Orientation

2019 ◽  
Vol 8 (4) ◽  
pp. 3816-3820

The environment can be broadly described as the totality of social, ecological and economic factors that impacts the functioning of an organization and defines its strategic posture. The study explores the Environmental Uncertainty - Business Performance (EU-BP) relationship. The study applies Structure Equation Modelling on a purposive sample of 509 North Indian firms. Mediation Analysis examines the mediating role of entrepreneurial orientation in EU-BP relationship. The study reveals that environmental uncertainty negatively impacts business performance. Entrepreneurial orientation mediates in Environmental Uncertainty - Business Performance (EU-BP) relationship. The result reveals that entrepreneurial inclination equips a firm with the ability to face the uncertainty of environmental forces and to improve firm performance. The findings may help management practitioners and entrepreneurs in better strategizing the strategic posture of their firm.

Author(s):  
Huseyin Ince ◽  
Salih Zeki Imamoglu ◽  
Mehmet Ali Karakose

The relationship between entrepreneurial orientation, social capital, innovation performance, and firm performance has attracted the attention of many researchers. However, there is a lack of research on the mediating role of innovation performance on the relationship between entrepreneurial orientation, social capital, and firm performance. The purpose of this study is to investigate the mediating effect of innovation performance on the relationships between entrepreneurial orientation and firm performance and between social capital and firm performance. The study involves a questionnaire-based survey of managers from a variety of firms operating in Turkey. A total of 665 surveys from 298 firms were received and subjected to structural equation modelling analyses. We find that: (1) entrepreneurial orientation and social capital affect innovation performance, (2) innovation performance affects firm performance, and (3) innovation performance mediates the relationship between social capital and firm performance, and between entrepreneurial orientation and firm performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.


2019 ◽  
Vol 26 (5) ◽  
pp. 641-660 ◽  
Author(s):  
Stanzin Mantok ◽  
Harjit Sekhon ◽  
Gurjeet Kaur Sahi ◽  
Paul Jones

Purpose The purpose of this paper is to examine organisational learning as a mediator among small-scale manufacturing enterprises (S-SMEs) which comprise the majority of economic activity in an emergent/developing economy. This study offers further understanding regarding the mediating role of organisational learning in developing world economies, due to its potential regional influence. Design/methodology/approach A cross-sectional survey of Indian S-SMEs was undertaken from the District Industrial Center. The study employed a systematic sampling technique to contact owner/managers. Overall, 204 S-SMEs owners/managers participated in the study and 192 usable survey instruments were received. Findings The study offers novel insights to the following questions. First, the factors that prompt entrepreneurial orientation to achieve superior business performance, i.e. the antecedents of entrepreneurial orientation? The results reveal competitor orientation is an antecedent of entrepreneurial orientation that leads to an S-SME’s business performance. Second, the outcomes of entrepreneurial orientation, i.e. the consequences of entrepreneurial orientation? The study reveals organisational learning and business performance are the corollary of entrepreneurial orientation. Third, the examination of whether organisational learning mediates the relationship between entrepreneurial orientation and business performance? The findings found the effects of entrepreneurial orientation on business performance are, in part, mediated by organisational learning. Research limitations/implications Three study limitations are recognised. First, other strategic orientations, including technology orientation, production orientation and selling orientation are not included. Second, other constructs have a potentially significant relationship with market and entrepreneurial orientation, such as organisational capabilities, innovation and social context, were not considered. Third, the study is industry-sector specific and does not consider alternative sectors which also may play a potential role in economic development. Originality/value This study enhances the existing S-SME literature by identifying factors contributing to entrepreneurial orientation and its repercussions on business performance. For S-SMEs it adds credence to the role played by organisational learning in mediating the link between entrepreneurial orientation and business performance which potentially encourages owner/managers to dedicate increased time and resources towards creating and maintaining a conducive learning environment. The results support entrepreneurs in acknowledging the importance of competitor orientation during the emergence and development of entrepreneurial orientation, specifically in emerging economy contexts.


2016 ◽  
Vol 13 (06) ◽  
pp. 1750003 ◽  
Author(s):  
Cevahir Uzkurt ◽  
Halil Semih Kimzan ◽  
Cengiz Yılmaz

In recent years, environmental uncertainty and market orientation have been considered key elements of superior firm performance. Although environmental uncertainty and market orientation may affect firm performance, innovation also mediates these effects. In this study, a conceptual model was developed to test the mediating effect of innovation on the relationships between these constructs. Data for the study were collected from Turkey’s Top 500 Companies. Hierarchical regression and multiple regression analyses were employed to test the research hypotheses. The findings of the study revealed that the direct effects of environmental uncertainty and innovation on firm performance were statistically significant, although the effect of market orientation was not. The results obtained from the present study seem to indicate a possible “dual effect” of market orientation on firm performance. The results also indicated that innovation, especially product innovation, mediates the relationship between environmental uncertainty and firm performance. The findings indicate that innovation, especially product innovation, is critical for firm performance.


2021 ◽  
Vol 17 (1) ◽  
pp. 129-146
Author(s):  
Nuryakin ◽  

Purpose: The aim of this research is to analyze empirical evidence of the effect of entrepreneurial orientations on SMEs' business performance. The previous study found that entrepreneurial orientation became an important key for an entrepreneur to enhance business performance. This study also examined the role of relational capabilities as an intervening variable to achieve business performance. Methodology: The sample in this study was the furniture SMEs in the region of central Java with a sample size of 208 SMEs. This study used purposive sampling methods. Structural Equation Modelling (SEM) was used to test results of the data analysis with the help of software AMOS/Amos Graph. Findings: The results of the study showed that entrepreneurial orientation has a significant positive effect on business performance. Entrepreneurial orientation has a significant positive effect on relational capabilities. Relational capabilities are mediated the positive relationship between entrepreneurial orientation and business performance significantly. Implications for theory and practice: The results of this study indicate the effect of entrepreneurial orientation on business performance and relational capabilities and mediating role of relational capabilities. Therefore, SMEs ought to develop relational capabilities with SMEs networks through strengthening entrepreneurial orientation to achieve SMEs' performance. Originality and value: The main contribution of the study from the combination of entrepreneurial orientation and relational capabilities of SMEs to enhance business performance.


2020 ◽  
Vol 9 (7) ◽  
pp. 2852
Author(s):  
I Made Suhartana Putra ◽  
Gede Suparna

Entrepreneurial orientation and high competitive advantage can trigger business performance that greatly affects the achievement of company goals. The purpose of this study was to determine the mediating role of the variable competitive advantage against the entrepreneurial orientation variable and the business performance of the silver industry in Celuk Sukawati. The population of this study are 71 people, with the saturated sample method. Data collectedthrough questionnaires and interviews and are analyzed by SEM - PLS. The test results show that entrepreneurial orientation has positive and significant effect on competitive advantage, competitive advantage and entrepreneurial orientation have  positive and significant effect on business performance, and competitive advantage is mediating variable of entrepreneurial orientation on business performance. Company is expected to be able to implement the dimensions of entrepreneurial orientation well, and increase the company's competitive advantage, so company will be able to compete and improve the company's business performance. Keywords: entrepreneurial orientation, competitive advantage, business performance


2012 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Rina Herani ◽  
Otto Andersen

Small and medium enterprises (SMEs) have a critical role in economic growth in Indonesia and become the backbone for job creation, poverty alleviation, and safeguard during the crisis. However, they are highly exposed to uncertain environments. The present study aimed to investigate the influence of SMEs’ entrepreneurial orientation on business performance when uncertain environments exist. A total of 152 Indonesian SMEs were studied in order to assess this relationship. Moderated regression analysis is performed as the main statistical procedures to analyse the moderating role of environmental uncertainty on the influence of entrepreneurial orientation on business performance. Surprisingly, the result of the present study did not confirm the previous predominant studies which found that entrepreneurialorientation dimensions are positively associated with business performance in growing in an uncertain environment. Indonesian entrepreneurs were reluctant to innovate, be proactive, and take risks when an uncertain environment exists. The present study was an endeavour to provide better insight in explaining the inconsistent and ambiguous findings from existing literature.


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