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Influence of Entrepreneurial Orientation and Business Environment on Small and Medium Firm Performance: A PLS Approach

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  • Aliyu Mukhtar Shehu
  • Rosli Mahmood

Abstract

The purpose of this study is to investigate the relationship of entrepreneurial orientation and business environment on firm performance, underpinned by Resource based view. Their relationship receives a considerable scholarly attention in the literature, but few studies have been conducted among Nigerian SMEs. SMEs are considered as important to the economic growth of Nigeria and they constitute the major source of employment and significantly contribute to the gross domestic production. Based on the theoretical consideration, a model was proposed to examine this relationship. A quantitative method was used with a total of 640 questionnaires personally distributed to the owner/managers of SMEs in Nigeria. A total of 511 questions was duly completed and returned representing 79.8% response rate. The study finding is in support of previous researchers who have suggested the positive relationship of entrepreneurial orientation and firm performance in many organizations. The finding from the study indicated no relationship between the business environment and firm performance. The finding from this study will benefit SME owner/managers, regulatory agency ie small and medium enterprise development agency of Nigeria, it will also help in policy formulation and will serve as a frame of future reference.

Suggested Citation

  • Aliyu Mukhtar Shehu & Rosli Mahmood, 2014. "Influence of Entrepreneurial Orientation and Business Environment on Small and Medium Firm Performance: A PLS Approach," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 4(4), pages 1-8.
    • Handle: RePEc:spt:admaec:v:4:y:2014:i:4:f:4_4_8
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    Citations

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    Cited by:

    1. Jung-Fa Tsai & Phi-Hung Nguyen & Ming-Hua Lin & Duy-Van Nguyen & Hsu-Hao Lin & Anh-Tuan Ngo, 2021. "Impacts of Environmental Certificate and Pollution Abatement Equipment on SMEs’ Performance: An Empirical Case in Vietnam," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    2. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 0. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    3. Olubanjo Michael Adetunji & Akintola Amos Owolabi, 2016. "Firm Performance and Its Drivers: How Important Are the Industry and Firm-Level Factors?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 60-77, November.
    4. Olubanjo Adetunji & Akintola Owolabi, 2016. "Firm Performance and Its Drivers: How Important Are the Industry and Firm-Level Factors?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 1-60, November.
    5. Aliyu Mukhtar Shehu & Rosli Mahmood, 2014. "An Empirical Analysis of Market Orientation and Business Performance Relationship in the Context of Developing Economy," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(9), pages 219-232, September.
    6. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 2017. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 427-463, June.
    7. Nwankwo Cosmas Anayochukwu & Kanyangale Macdonald Isaac, 2019. "Market Orientation and Survival of Small and Medium Enterprises in Nigeria," Foundations of Management, Sciendo, vol. 11(1), pages 291-304, January.

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