The Role of Entrepreneurial Orientation in Small Medium Enterprises Performance in Lagos, Nigeria
Article Sidebar
Main Article Content
Abstract
This study examines the role of entrepreneurial orientation on the performance of Small and Medium Enterprises (SMEs) in Nigeria. The objective was to determine the effect of innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness on the performance of SMEs in Nigeria. Using a 21-item questionnaire with a 5-point Likert scale, the authors collected data on entrepreneurial orientation and SMES Performance. Taro Yamani Formula determined the sample size of 222 SME owners, Managers and Workers. Collected data was analysed with the use of a frequency distribution table, and simple percentages and the hypotheses were tested with Chi-Square statistical formula. The study revealed that innovativeness, risk-taking, proactiveness and competitive aggressiveness enhance the performance of SMEs. The practice of autonomy does not enhance SMEs' performance. The research suggests that SME owners and managers should be creative and innovative to adapt to external changes and customer needs. They should take calculated risks, invest in new products and services, conduct competitor analysis, and encourage employee initiatives.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Any article on the copyright is retained by the author(s).
- Author grant the journal, right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share work with acknowledgment of the work authors and initial publications in this journal.
- Authors are able to enter into a separate, additional contractual arrangements for non-exclusive distribution of published articles of work (eg, post-institutional repository) or publish it in a book, with acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their websites) prior to and during the submission process, as can lead to productive exchanges, as well as earlier and greater citation of published work.
- The article and any associated published material is distributed under the Creative Commons Attribution-ShareAlike 4.0 International License
References
Abd Aziz, S., & Mahmood, R. (2011). The relationship between business model and performance of manufacturing small and medium enterprises in Malaysia. African Journal of Business Management, 5(22), 8918-8932.
Abdullahi, M. S., Jakada, B. A., & Kabir, S. (2016). Challenges affecting the performance of small and medium scale enterprises (SMEs) in Nigeria. Journal of Human Capital Development (JHCD), 9(2), 21-46.
Adeniran, F. A. (2020). Challenges and Contributions of Entrepreneurship Education for Sustainable Development in Nigeria. Achieving Sustainable Development in Nigeria through Innovation Creativity and Entrepreneurial Education, 618-631.
Al Mamun, A., Kumar, N., Ibrahim, M. D., & Bin, M. N. H. (2017). Validating the measurement of entrepreneurial orientation. Economics & Sociology, 10(4), 51-66.
Al-Mamary, Y. H., & Alshallaqi, M. (2022). Impact of autonomy, innovativeness, risk-taking, proactiveness, and competitive aggressiveness on students’ intention to start a new venture. Journal of Innovation & Knowledge, 7(4), 100239.
Baldanov, A., Kiminami, L., Furuzawa, S., Baldanov, A., Kiminami, L., & Furuzawa, S. (2020). Situation of Human Development, Human Capital, Agriculture and Rural Development in Russia. Agriculture and Rural Development in Russia Since the 2000s: Focusing on Human Capital, 15-29.
Branch, N., & McGivern, M. H. (2014). Telecommunications Entrepreneurial Orientation (TELEO): An Empirical Study Measuring the Significance of Entrepreneurial Orientation on Business Performance of Small-to-Medium Enterprises (SME) in the Telecommunications Industry. International Journal of Strategic Information Technology and Applications (IJSITA), 5(2), 13-26.
Bulkani, B., Kartini, N. H., & Rahmaniati, R. (2023). Benefits of Kalteng Berkah Scholarship, What’s for and to Whom? (Evaluation of Scholarship Program Using a Transactional Model). International Journal of Universal Education, 1(2), 38–43. https://doi.org/10.33084/ijue.v1i2.6896
Byukusenge, E., & Munene, J. C. (2017). Knowledge management and business performance: Does innovation matter? Cogent Business & Management, 4(1), 1368434.
Dess, G. G., Pinkham, B. C., & Yang, H. (2011). Entrepreneurial orientation: Assessing the construct's validity and addressing some of its implications for research in the areas of family business and organizational learning. Entrepreneurship Theory and Practice, 35(5), 1077-1090.
Ebert, N. (2016). Individualisation at work: The self between freedom and social pathologies. Routledge.
Etim, J. J., Adabu, M. U., & Ogar, C. A. (2017). Influence of entrepreneurial orientation as survival strategy for small and medium enterprises: The Nigeria experience. International Journal of Economics, Commerce and Management, 5(8), 502-518.
Freiling, J., & Lütke Schelhowe, C. (2014). The impact of entrepreneurial orientation on the performance and speed of internationalisation. Journal of Entrepreneurship, Management and Innovation, 10(4), 169.
Gupta, V. K., & Dutta, D. K. (2016). Inquiring into entrepreneurial orientation: Making progress, one step at a time. New England Journal of Entrepreneurship, 19(2), 1.
Haider, S. H., Asad, M., & Fatima, M. (2017). Entrepreneurial orientation and business performance of manufacturing sector small and medium scale enterprises of Punjab Pakistan. European Business and Management, 3(2), 21-28.
Herath, H. A., & Mahmood, R. (2013). Strategic orientation based research model of SME performance for developing countries. Review of Integrative Business and Economics Research, 2(1), 430.
Ibeh, K. I. (2004). Furthering export participation in less performing developing countries: The effects of entrepreneurial orientation and managerial capacity factors. International Journal of Social Economics, 31(1/2), 94-110.
Kearney, A., Harrington, D., & Kelliher, F. (2017). Managerial capability for innovation for microfirms: integrating theory with empirical evidence. The Irish Journal of Management, 36(1), 49-59.
Kollmann, T., & Stöckmann, C. (2014). Filling the entrepreneurial orientation–performance gap: The mediating effects of exploratory and exploitative innovations. Entrepreneurship Theory and Practice, 38(5), 1001-1026.
Kosa, A., Mohammad, I., & Ajibie, D. (2018). Entrepreneurial orientation and venture performance in Ethiopia: the moderating role of business sector and enterprise location. Journal of Global Entrepreneurship Research, 8, 1-17.
Kraus, S., Rigtering, J. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands. Review of Managerial Science, 6, 161-182.
Lawal, A. A., Ajonbadi, H. A., & Otokiti, B. O. (2014). Strategic importance of the Nigerian small and medium enterprises (SMEs): Myth or reality. American Journal of Business, Economics and Management, 2(4), 94-104.
Martín‐Rojas, R., García‐Morales, V. J., & García‐Sánchez, E. (2011). The influence on corporate entrepreneurship of technological variables. Industrial Management & Data Systems, 111(7), 984-1005.
Mohammad, H. I., Luka, J., & Daniel, M. (2021). Entrepreneurship Orientation, Innovation and Firm Performance in North-East Nigeria. Nigerian Journal of Accounting and Finance, 13(1).
Moreno, C. E., & Reyes, J. F. (2013). The value of proactive environmental strategy: An empirical evaluation of the contingent approach to dynamic capabilities. Cuadernos de Administración, 26(47), 87-118.
Okeyo, W., Gathungu, J. M., & K’Obonyo, P. (2016). Entrepreneurial orientation, business development services, Business environment, and performance: A critical literature review. European Scientific Journal 12(28), 188-218
Olubiyi, T. O., Egwakhe, A. J., Amos, B., & Ajayi, A. A. (2019). Entrepreneurial orientation and firm profitability: Evidence from Lagos State Nigeria. IOSR Journal of Business and Management, 21(6), 42-54.
Oni, O., Agbobli, E. K., & Iwu, C. G. (2019). Entrepreneurial Orientation and Performance of Small Business in Vryburg Region North West Province South Africa. Journal of Reviews on Global Economics, 8, 63-71.
Oriazowanlan, A. O. (2013). Status of entrepreneurship education in south-south Nigerian tertiary institutions as perceived by lecturers. Unpublished Doctoral Dissertation). Nnamdi Azikiwe University, Awka.
Sari, E., Bulkani, B., & Rahmaniati, R. (2023). The Effect of Using the STAD (Student Teams Achievement Division) Cooperative Model Assisted by Finger Puppets on Students’ Learning Motivation. International Journal of Universal Education, 1(2), 61–68. https://doi.org/10.33084/ijue.v1i2.6949
Soares, M. D. C., & Perin, M. G. (2020). Entrepreneurial orientation and firm performance: an updated meta-analysis. RAUSP Management Journal, 55, 143-159.
Susanto, P., Hoque, M. E., Shah, N. U., Candra, A. H., Hashim, N. M. H. N., & Abdullah, N. L. (2023). Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media usage. Journal of Entrepreneurship in Emerging Economies, 15(2), 379-403.
Uchenna, E. B., Sanjo, O. M., & Joseph, F. (2019). Entrepreneurial orientation and micro, small and medium enterprises (MSMEs) performance in Abia State, Nigeria. Covenant Journal of Entrepreneurship (Special Edition).
Zehir, C., Can, E., & Karaboga, T. (2015). Linking entrepreneurial orientation to firm performance: the role of differentiation strategy and innovation performance. Procedia-Social and Behavioral Sciences, 210, 358-367.
Zhai, Y. M., Sun, W. Q., Tsai, S. B., Wang, Z., Zhao, Y., & Chen, Q. (2018). An empirical study on entrepreneurial orientation, absorptive capacity, and SMEs’ innovation performance: A sustainable perspective. Sustainability, 10(2), 314.
Zhang, Z., & Xing, Y. (2023). Impact of entrepreneurial orientation and risk sharing on organizational performance influencing role of news media and public opinion. Frontiers in Psychology, 14, 1126743.