Revisiting the impact of entrepreneurial orientation on SMEs' organizational performance

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 respons...

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Bibliographic Details
Published in:Problems and Perspectives in Management
Main Author: Said J.; Islam K.M.A.; Bhuiyan A.B.; Islam M.S.; Hasan Z.
Format: Article
Language:English
Published: LLC CPC Business Perspectives 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85191021693&doi=10.21511%2fppm.22%282%29.2024.03&partnerID=40&md5=402545456f135798eb19a92118f35747
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Summary: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. © 2024 LLC CPC Business Perspectives. All rights reserved.
ISSN:17277051
DOI:10.21511/ppm.22(2).2024.03