IDEAS home Printed from https://ideas.repec.org/a/ibn/resjnl/v12y2020i2p85.html
   My bibliography  Save this article

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

Author

Listed:
  • Arokodare, M. A.
  • Asikhia, O. U.

Abstract

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.

Suggested Citation

  • Arokodare, M. A. & Asikhia, O. U., 2020. "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," Review of European Studies, Canadian Center of Science and Education, vol. 12(2), pages 1-85, June.
    • Handle: RePEc:ibn:resjnl:v:12:y:2020:i:2:p:85
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/res/article/download/0/0/42820/44825
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/res/article/view/0/42820
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jonathan Doh & Suzana Rodrigues & Ayse Saka-Helmhout & Mona Makhija, 2017. "International business responses to institutional voids," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 293-307, April.
    2. Sascha Kraus & Ilkka Kauranen & Carl Henning Reschke, 2011. "Identification of domains for a new conceptual model of strategic entrepreneurship using the configuration approach," Management Research Review, Emerald Group Publishing Limited, vol. 34(1), pages 58-74, January.
    3. Bereket Mamo Buli, 2017. "Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry," Management Research Review, Emerald Group Publishing Limited, vol. 40(3), pages 292-309, March.
    4. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    5. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    6. Mark Freel, 2005. "Perceived Environmental Uncertainty and Innovation in Small Firms," Small Business Economics, Springer, vol. 25(1), pages 49-64, August.
    7. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    8. Donald F. Kuratko & David B. Audretsch, 2009. "Strategic Entrepreneurship: Exploring Different Perspectives of an Emerging Concept," Entrepreneurship Theory and Practice, , vol. 33(1), pages 1-17, January.
    9. Catalina Nicolás & Alicia Rubio & Ana Fernández-Laviada, 2018. "Cognitive Determinants of Social Entrepreneurship: Variations According to the Degree of Economic Development," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 9(2), pages 154-168, May.
    10. Mojarad Ali Asghar Sadeghi & Atashbari Vahid & Tantau Adrian, 2018. "Challenges for sustainable development strategies in oil and gas industries," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 12(1), pages 626-638, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.
    2. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    3. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    4. Cardona Montoya, Raúl Armando & Martins, Izaias & Velásquez Ceballos, Hermilson, 2017. "Entrepreneurial orientation, assessment and management of projects and impact in corporate entrepreneurship: intention to action," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    5. Yu-Ming Zhai & Wan-Qin Sun & Sang-Bing Tsai & Zhen Wang & Yu Zhao & Quan Chen, 2018. "An Empirical Study on Entrepreneurial Orientation, Absorptive Capacity, and SMEs’ Innovation Performance: A Sustainable Perspective," Sustainability, MDPI, vol. 10(2), pages 1-14, January.
    6. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    7. Matthew J. Mazzei, 2018. "Strategic entrepreneurship: Content, process, context, and outcomes," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 657-670, September.
    8. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    9. Shirokova, G. & Ivvonen, L., 2016. "Performance of Russian SMEs during the economic crisis: The role of strategic entrepreneurship," Working Papers 6454, Graduate School of Management, St. Petersburg State University.
    10. Abiodun Tope Samson, 2015. "The Impact of Entrepreneurial Orientation, Reconfiguring Capability and Moderation of Environmental Turbulence on Export Performance of SMEs in Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 7(3), pages 76-87.
    11. Claudio Vitari & Elisabetta Raguseo, 2016. "Big data value and financial performance: an empirical investigation [Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data]," Post-Print halshs-01923271, HAL.
    12. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    13. Misbah Haque & Imran Ali, 2016. "Uncertain Environment and Organizational Performance: The Mediating Role of Organizational Innovation," Asian Social Science, Canadian Center of Science and Education, vol. 12(9), pages 124-124, September.
    14. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    15. Uwe Cantner & Michael Stützer, 2010. "The Use and Effect of Social Capital in New Venture Creation - Solo Entrepreneurs vs. New Venture Teams," Jena Economics Research Papers 2010-012, Friedrich-Schiller-University Jena.
    16. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    17. G. Page West III & Charles E. Bamford & Jesse W. Marsden, 2008. "Contrasting Entrepreneurial Economic Development in Emerging Latin American Economies: Applications and Extensions of Resource-Based Theory," Entrepreneurship Theory and Practice, , vol. 32(1), pages 15-36, January.
    18. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    19. Hafeez, Salima & Rana, Asif Mehmood & Chaudhry, Rashid Mehmood & Khan, Muhammad Aslam & Ahmad, H.Mushtaq & Rehman, Kashif Ur, 2011. "Perspectives of entrepreneurial orientation with the quality of life," MPRA Paper 53860, University Library of Munich, Germany.
    20. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, vol. 41(1), pages 1-24, June.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:resjnl:v:12:y:2020:i:2:p:85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.