scholarly journals The Moderating Effect of External Environment on the Relationship Between Strategic Entrepreneurship and Performance of Selected Oil and Gas Service Firms in Lagos and Rivers States, Nigeria

2020 ◽  
Vol 12 (2) ◽  
pp. 85
Author(s):  
Arokodare, M. A. ◽  
Asikhia, O. U.
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Oil And Gas ◽  
External Environment ◽  
Service Firms ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Strategic Entrepreneurship ◽  
Overall Performance ◽  
The Relationship

Globally, oil and gas service industry is one of the major contributors to the economic development of many nations. However, the industry is faced with problems of poor entrepreneurial orientation, inflexible planning and poor management of external environmental challenges. These problems have negatively affected their overall performance. This study therefore examined the effect of strategic entrepreneurship on overall performance. The study adopted cross-sectional survey research design with a target population of 9,324 owners and managers of oil and gas service companies operating in Lagos and Rivers States, Nigeria. A multi-stage sampling technique was adopted to select the sample size of 733 using the Cochran (1997) formula. The data was analyzed using descriptive statistics and multiple and hierarchical regression methods of analyses. Findings revealed that strategic entrepreneurship components (entrepreneurial orientation and planning flexibility) had significant effect on firm performance (R2 = .216, F-stat = 34.743, p<0.05). Strategic entrepreneurship components significantly affected sales growth (Adj. R2 = .582, F-stat = 98.422, p<0.05); market share (Adj. R2 = .511, F-stat = 58.132, p<0.05); and profitability (Adj. R2 = .410, F-stat = 42.982, p<0.05). External environment significantly moderated the relationship between strategic entrepreneurship and firm performance (ΔR2 = .593, ΔF = 19.256; F-stat = 67.765, p<0.05) all at 5% level of significance. Implications of the findings and recommendations were made.

scholarly journals Entrepreneurial Orientation as a Determinant of Oil and Gas Service Firm Performance in Nigeria: The Moderating Role of External Environment

2020 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
M. A. Arokodare ◽  
O. U. Asikhia
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Service Sector ◽  
Oil And Gas ◽  
Market Performance ◽  
External Environment ◽  
Oil And Gas Industry ◽  
Service Firms ◽  
Cross Sectional Survey ◽  
Cross Sectional

Oil and gas service sector is one of the major sectors of the oil and gas industry that contributes to and enhances economic functions across the globe. This industry in Nigeria was plagued with problems of unstable global oil prices, absence of entrepreneurial mindset, poor entrepreneurship ideas and mis-match of entrepreneurial orientation strategies with local and international business environmental conditions. Due to these problems, the oil and gas service firms recorded declining market performance and profitability. This study therefore examined the effect of entrepreneurial orientation components on overall performance. The study adopted cross-sectional survey research design with a target population of 14,038 owners and managers of oil and gas service companies operating in Nigeria. A mixed sampling technique was adopted to select the sample size of 576 using the Cochran (1997) formula. The data was analyzed using descriptive statistics and multiple and hierarchical regression methods of analyses. Findings revealed that entrepreneurial orientation components (proactiveness, innovativeness, risk taking propensity, autonomy and competitive aggressiveness) had significant effect on market performance (Adj.R2 = .538, F-stat = 92.142, p<0.05). Entrepreneurial orientation components significantly affected profitability (Adj. R2 = .626, F-stat = 76.584, p<0.05); while external environment significantly moderated the relationship between entrepreneurial orientation and firm performance (Δ Adj.R2 = .593, ΔF = 25.451; F-stat = 47.215, p<0.05) all at 5% level of significance. Implications of the findings and recommendations were made.

Entrepreneurial competencies, entrepreneurial orientation, entrepreneurial network, government business support and SMEs performance. The moderating role of the external environment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Buba Musa Pulka ◽  
Azahari Ramli ◽  
Armanurah Mohamad
Keyword(s):  
Entrepreneurial Orientation ◽  
External Environment ◽  
Survey Method ◽  
Cross Sectional ◽  
Content Type ◽  
Business Support ◽  
Entrepreneurial Competencies ◽  
Multistage Sampling ◽  
High Level ◽  
The Relationship

PurposeThe purpose of this study is to examine the moderating influence of the external environment on the relationship between entrepreneurial competencies, entrepreneurial orientation, entrepreneurial network, government business support and SMEs performance. The objectives of the study are achieved using the resource-based view and dynamic capability theory.Design/methodology/approachThe survey method of research was used by personally administering questionnaires to the respondents. Multistage sampling techniques are used in selecting 470 SMEs owners/managers that participated in the survey. SPSS 24 and PLS-SEM 3.0 were used in the analysis of the data.FindingsIn the Nigerian context, the findings indicated that EC, EO and GBS directly influence the SMEs performance. Surprisingly, SMEs performance is not influenced by EN. Similarly, EE significantly moderated the relationship between EC, GBS and SMEs performance. On the contrary, EE does not have any moderating influence on the relationship between EO, EN and SMEs performance.Research limitations/implicationsThe study is limited to northeastern Nigeria. The study is limited to the EC, EO, EN GBS EE and SMEs performance and the use of cross-sectional data. The findings imply that SMEs owners/managers need a high level of entrepreneurial competencies and government business support to achieve a better performance especially in an external environment that is characterised by dynamism, diversity, complexity and hostility. Hence, providing support for both RBV and DCT.Practical implicationsThus, the study offers additional empirical evidence from Nigeria and also expands knowledge and understanding in this field. The findings offer owners/managers, government agencies, financial institutions and other stakeholders of SMEs strategies EC, EO, GBS and EE to achieve a better SMEs performance.Originality/valueThe conceptual framework of the study is unique, and the study was conducted in northeastern Nigeria which is grossly underrepresented in the literature. It also provided understanding on the moderating influence of EE on the framework.

scholarly journals Entrepreneurial Orientation, Resource Orchestration Capability, Environmental Dynamics and Firm Performance: A Test of Three-Way Interaction

2020 ◽  
Vol 12 (13) ◽  
pp. 5415
Author(s):  
Suk Bong Choi ◽  
Wang Ro Lee ◽  
Seung-Wan Kang
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Interaction Model ◽  
Positive Association ◽  
Service Firms ◽  
High Resource ◽  
Resource Orchestration ◽  
High Level ◽  
The Relationship ◽  
Practical Implications

This study investigated the effect of entrepreneurial orientation on firm performance with the firm resource orchestration capability and environmental dynamics in moderating roles. Using survey data collected from 301 Korean manufacturing and service firms, we devised a three-way interaction model to uncover the complex and dynamic conditions that maximize the effect of entrepreneurial orientation on firm performance. We found a positive association between entrepreneurial orientation and firm performance. Moreover, our findings indicated that both the firm resource orchestration capability and environmental dynamics played positive moderating roles in the above relationship. The results also showed that, in the case of a high level of environmental dynamics, entrepreneurial orientation was more positively related to firm performance for firms with a high resource orchestration capability. In addition, in the case of low resource orchestration capability, entrepreneurial orientation was associated more positively with firm performance for firms with high environmental dynamics. Thus, this study confirmed the importance of interaction between the three factors for enhancing firm performance. Furthermore, our investigation of substantial moderators provided key insights regarding the conditions that better explain how entrepreneurial orientation promotes firm performance. In addition to two-way interaction, the support for a three-way interaction suggests that moderators of the relationship interact to further explain the relationship. The theoretical and practical implications are discussed.

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 Moderating Role Of Entrepreneurial Orientation On The Relationship Between Information Technology Competence And Firm Performance In Kenya

2017 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Stanley Ndungu ◽  
Kenneth Wanjau ◽  
Robert Gichira ◽  
Waweru Mwangi
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Superior Performance ◽  
Cross Sectional Survey ◽  
Technology Competence ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

This study explored moderating role of entrepreneurial orientation on the relationship between Information Technology Competence and firm performance in Kenya. The impact of IT on FP remains debatable to-date because some results of previous studies have had high variations resulting from diversities in the conceptualization of the key constructs and their interrelationship, coupled with the exclusion of intangible effect of IT on performance. In Kenya, SMEs employ about 85 percent of the workforce. The need to link ITC with FP has become vital for firms striving to achieve superior performance. However, limited attention has been paid to the link and more so to the moderating role of EO on ITC- FP relationship model. To better understand this relationship, this paper adopted a mixed methods research guided by cross-sectional survey design. Quantitative and qualitative techniques were employed to analyze the collected data using SPSS, Ms-Excel, AMOS, SmartPLS, STATA, R-GUI and ATLAS.ti analytical softwares. Analyses were conducted using a two-phase process consisting of CFA and SEM models. The theoretical models and hypotheses were tested based on empirical data gathered from 94 SMEs in the 2013 Top 100 Survey. The study found that ITC had a positive relationship with FP. The results also revealed that EO did not significantly moderate the relationship between ITC and FP in Kenya. However, when run with the interaction term, the Technical (ITC and ISRA)*EO was statistically significant at 10% α-level. This study will enhance the skill set in Kenyan SMEs and produce a more sustainable solution.

The Moderating Effect of Environmental Variables on the Entrepreneurial and Marketing Orientation of Entrepreneur-led Firms

1997 ◽  
Vol 22 (1) ◽  
pp. 47-58 ◽  
Author(s):  
Richard C. Becherer ◽  
John G. Maurer
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Empirical Evidence ◽  
Entrepreneurial Orientation ◽  
Environmental Variables ◽  
External Environment ◽  
Moderating Effects ◽  
Marketing Orientation ◽  
Relationship Of ◽  
The Relationship

A firm's marketing orientation and entrepreneurial orientation intuitively should relate to organizational performance. Considerable theory can be found concerning the causes and consequences of each orientation as well as their relationship, but little empirical evidence exists, especially for small-firm samples. This paper examines the relationship between the two concepts and how this relationship is moderated by the firm's external environment. In addition, the relationship of marketing orientation and entrepreneurial orientation to firm performance and the moderating effects of the environment on these two relationships are examined. The sample consists of entrepreneurs, defined as those individuals who have started or purchased a small business, and who are still leading the business they started or purchased.

Supply chain agility: a mediator for absorptive capacity

2018 ◽  
Vol 13 (2) ◽  
pp. 264-278 ◽  
Author(s):  
Angel Martinez-Sanchez ◽  
Fernando Lahoz-Leo
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Absorptive Capacity ◽  
Structural Equation ◽  
Mediating Effect ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Supply Chain Agility ◽  
The Relationship

Purpose The purpose of this paper is to analyse the mediating effect of supply chain agility (SCA) in the relationship between absorptive capacity (AC) and firm performance. Design/methodology/approach The authors use data from 231 Spanish firms and test the hypothesis by structural equation modelling. Findings SCA mediates the relationship between AC and firm performance. Research limitations/implications The cross-sectional survey and the use of managerial perceptions may need to use longitudinal and real measures in future studies to validate causal relationships. Practical implications SCA may contribute to explain why AC improves firm performance. Firms with more agile supply chains may benefit more from their efforts in AC to improve firm performance. Originality/value A conceptual framework has been developed to explain the relationships of the main constructs of the study (AC and SCA) with firm performance and whether SCA mediates the relationship between AC and firm performance.

Offshoring experience and performance: the role of realized drivers and risk management

2018 ◽  
Vol 23 (6) ◽  
pp. 531-544 ◽  
Author(s):  
Fazli Haleem ◽  
Sami Farooq ◽  
Brian Vejrum Wæhrens ◽  
Harry Boer
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Performance Outcomes ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Actual Performance ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeMany factors have been identified that may drive a firm’s decision to offshore production activities. The actual performance effects of offshoring, however, depend on the extent to which these drivers are realized. Furthermore, the question is how risk management helps mitigating the risk involved in offshoring ventures, thus leading to better performance outcomes. The purpose of this study is to investigate the extent to which realized offshoring drivers and risk management mediate the relationship between offshoring experience and firm performance.Design/methodology/approachData from the Global Operations Networks project, a cross-sectional survey administered in Denmark and Sweden, are used to test two hypotheses on the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance. AMOS version 23 is used to perform the analyses.FindingsThe results demonstrate that realized offshoring drivers fully mediate the relationship between offshoring experience and firm performance. However, risk management does not mediate the relationship between offshoring experience and firm performance.Originality/valueThis study develops new theory on, and managerial insight into, the mediating role of realized offshoring drivers and risk management in the relationship between offshoring experience and firm performance.

scholarly journals Entrepreneurial orientation and firm performance: the mediating role of functional performances

2018 ◽  
Vol 41 (7) ◽  
pp. 878-900 ◽  
Author(s):  
Jafar Rezaei ◽  
Roland Ortt
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Positive Relationship ◽  
Sales Performance ◽  
Production Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Overall Performance ◽  
The Relationship

Purpose Earlier studies have generally shown a positive relationship between entrepreneurial orientation (EO) and the overall performance of the firm. The purpose of this paper is to understand in more detail how EO influences firm performance. It adds to the literature by distinguishing performances of different functions in a firm and by exploring how the dimensions of EO influence these functional performances and, in turn, overall firm performance. Design/methodology/approach This study examined the relationship between three dimensions of EO (innovativeness, proactiveness, risk-taking), three types of functional performances of firms (R&D performance, production performance, marketing and sales performance) and the overall performance of firms. The data are collected from 279 high-tech small-to-medium-sized enterprises (SMEs) using a postal survey. The proposed hypotheses are tested using structural equation modeling (SEM). Findings The results indicate that the dimensions of (EO) are related in different ways to the performance of functions in a firm. A positive relationship is observed between innovativeness and R&D performance and between proactiveness and marketing and sales performance. A negative relationship exists between risk-taking and production performance. The results also show a sequential positive relationship from R&D via production and marketing and sales to overall performance of firms. Therefore, it is concluded that the R&D, production and marketing and sales functions reinforce each other in a logic order and are complementary in their effect on overall firm performance. Practical implications The results imply that the three functions, R&D, production and marketing and sales, in a firm play different roles, both in the firm’s EO and in their contribution to overall performance. Managers can use the findings to monitor and influence the performance of different functions in a firm to increase overall firm performance. Originality/value The first contribution of this study is that it unravels (i) which dimensions of EO have an effect on the performance of separate functions in a firm, indicating that functions contribute in different ways to entrepreneurial orientation of the firm. A second contribution is assessing how the performance of these functions influence the firm’s overall performance. This paper fills a gap in the literature by exploring internal firm variables mediating the relationship between EO and overall firm performance and contributes to the discussion on the contradictory results regarding the relationship between risk-taking and firm performance.

scholarly journals Entry mode strategy, customer engagement, and firm performance

2020 ◽  
Vol 6 (1) ◽  
pp. 99-112
Author(s):  
Abiodun Babatunde Onamusi
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Survey Design ◽  
Entry Mode ◽  
International Market ◽  
Customer Engagement ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Lagos State ◽  
The Relationship

Purpose: This study assessed the effect of entry mode strategy on firm performance of selected manufacturers of baby-care product in Lagos State, Nigeria, more so, it examined the moderating effect of customer engagement on the relationship between entry mode strategy and firm performance. Methodology: This study employed a cross-sectional survey design and a sample of 452 employees of twelve manufacturers of baby-products in Lagos State, Nigeria. A moderated regression analysis to test two-way interaction hypotheses was conducted. Findings: The results showed that entry mode strategy has a positive and significant effect on firm performance (R2 =0.042, F(2,449) = 9.865, p <0.000). Further analysis showed that customer engagement explained the increase in firm performance (ΔR2 =0.543, ΔF(1,448) = 587.305 p <0.000) with the introduction of customer engagement as a moderator. Implications: Beyond the performance of entry mode strategy for firms, manager’s needs to deploy customer engagement capability because it’s offers high performance opportunities for the firms who can deploy it. Hence, firm needs to invest in setting up platforms to engage their customers after gaining access to a new international market.

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