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Dimensions of entrepreneurial orientation and small and medium enterprise performance in emerging economies

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  • Ingrid Le Roux
  • Kenneth M K Bengesi

Abstract

The removal of trade barriers has encouraged the entry of new competitors into formerly protected markets. This situation creates pressure on many small and medium enterprises (SMEs) in emerging economies such as Tanzania. Using a survey method and cross-sectional research design, the research examines three dimensions of entrepreneurial orientation (EO), namely: pro-activeness, risk-taking and competitive aggressiveness. Understanding their relationships and variance may help to improve our ability to explain SME performance. The findings contribute to how SME performance in emerging economies can be enhanced to enable SMEs to face challenges posed by competitor influx in the context of an open market economy. The findings indicate a strong relationship between EO dimensions and performance, with risk-taking and competitive aggressiveness moderating the effect of pro-activeness. The proposed model could predict 72% of the variance explained in SME performance.

Suggested Citation

  • Ingrid Le Roux & Kenneth M K Bengesi, 2014. "Dimensions of entrepreneurial orientation and small and medium enterprise performance in emerging economies," Development Southern Africa, Taylor & Francis Journals, vol. 31(4), pages 606-624, July.
    • Handle: RePEc:taf:deveza:v:31:y:2014:i:4:p:606-624
    DOI: 10.1080/0376835X.2014.913474
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    Citations

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    Cited by:

    1. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    2. Neneh Brownhilder, 2017. "Examining the Moderating Effect of Environmental Hostility on the Entrepreneurial Orientation -Performance Relationship," Journal of Economics and Behavioral Studies, AMH International, vol. 8(6), pages 6-18.
    3. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    4. Lavlu Mozumdar & Geoffrey Hagelaar & Gerben van der Velde & S.W.F. Omta, 2020. "Determinants of the Business Performance of Women Entrepreneurs in the Developing World Context," J, MDPI, vol. 3(2), pages 1-21, May.
    5. 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.
    6. Ardjouman Diabate & Hagan Sibiri & Linyu Wang & Liying Yu, 2019. "Assessing SMEs’ Sustainable Growth through Entrepreneurs’ Ability and Entrepreneurial Orientation: An Insight into SMEs in Côte d’Ivoire," Sustainability, MDPI, vol. 11(24), pages 1-26, December.
    7. Willy MALIGANYA & Kenneth M. K. BENGESI, 2023. "Compliance Of Large-Scale Mining Companies To Regulatory Framework For Sustainable Mining: A Case Of Buzwagi Gold Mine, Kahama District, Tanzania," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(3), pages 73-96, September.
    8. 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.

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