Entrepreneurial Orientation and Business Performance of Manufacturing Sector Small and Medium Scale Enterprises of Punjab Pakistan
European Business & Management
Volume 3, Issue 2, March 2017, Pages: 21-28
Received: Jan. 10, 2017; Accepted: Feb. 9, 2017; Published: Mar. 24, 2017
Views 1975      Downloads 221
Syed Hussain Haider, Strategic Management Division, Akhuwat, Lahore, Pakistan
Muzaffar Asad, Teaching Faculty School of Accounting and Finance, Faculty of Management Studies University of Central Punjab, Lahore, Pakistan
Minaa Fatima, P & D Department, Government of Punjab, Lahore, Pakistan
Article Tools
Follow on us
Small and Medium Enterprises (SMEs) play an important role in economic growth, innovation, and competitiveness, which ultimately enhances business performance. This study investigated the three dimensions of Entrepreneurial Orientation (EO) of manufacturing sector SMEs in Punjab, Pakistan. In this study the effects of three EO dimensions including innovativeness, pro-activeness, and risk taking have been analyzed with regard to business performance. Questionnaire was used as the main instrument of data collection. Quantitative techniques were applied for analyzing the data. Innovativeness, pro-activeness, and risk taking have a significant impact over business performance of manufacturing sector SMEs. Results further indicated there were positive correlations among innovativeness, pro-activeness and risk taking with business performance of SMEs. This study could be useful for policy makers, owners, and managers to plan their activities for getting better performance of SMEs operating in Punjab, Pakistan.
SMEs Performance, Manufacturing Sector, Innovativeness, Pro-activeness, Risk Taking, Entrepreneurial Orientation, Manufacturing Sector
To cite this article
Syed Hussain Haider, Muzaffar Asad, Minaa Fatima, Entrepreneurial Orientation and Business Performance of Manufacturing Sector Small and Medium Scale Enterprises of Punjab Pakistan, European Business & Management. Vol. 3, No. 2, 2017, pp. 21-28. doi: 10.11648/j.ebm.20170302.12
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Saeed, S., Yousafzai, S. Y., & Engelen, A. (2014). On cultural and macroeconomic contingencies of the entrepreneurial orientation–performance relationship. Entrepreneurship Theory and Practice, 38 (2), 255-290. doi:10.1111/etap.12097.
Kongolo, M. (2010). Job creation versus job shedding and the role of SMEs in economic development. African Journal of Business Management, 4 (11), 2288-2295.
Asad, M., Sharif, M. N., & Hafeez, M. (2016). Moderating effect of network ties on the relationship between entrepreneurial orientation, market orientation, and performance of MSEs. Paradigms A Research Journal of Commerce, Economics, and Social Sciences, 10 (2), 74-81.
Sherazi, S. K., Iqbal, M. Z., Asif, M., Rehman, K. u., & Shah, S. S. (2013). Obstacles to small and medium enterprises in Pakistan: Principal component analysis approach. Journal of Scientific Research, 13 (10), 1325-1334. doi:10.5829/idosi.mejsr.2013.13.10.1186.
Dougherty, D. (1992). Interpretive Barriers to Successful Product Innovation in Large Firms (Vol. 3).
Aloulou, W., & Fayolle, A. (2005). A conceptual approach of entrepreneurial orientation within small business context. Journal of Entreprising Culture, 3 (1), 21-45.
Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47 (4), 443–464. doi:10.1111/j.1540-627X.2009.00278.x.
Altinay, L., & Wang, C. L. (2011). The influence of an entrepreneur's socio‐cultural characteristics on the entrepreneurial orientation of small firms. Journal of Small Business and Enterprise Development, 18 (4), 673-694.
Wieneke, A., & Gries, T. (2011). SME performance in transition economies: The financial regulation and firm-level corruption nexus. Journal of Comparative Economics, 39(2), 221-229. doi:10.1016/j.jce.2010.09.001.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance (Vol. 21).
Boso, N., Story, V. M., & Cadogan, J. W. (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28 (6), 708–727. doi:10.1016/j.jbusvent.2013.04.001.
Kreiser, P. M., & Davis, J. (2010). Entrepreneurial orientation and firm performance: The unique impact of innovativeness, proactiveness, and risk-taking. Journal of Small Business & Entrepreneurship, 23 (1), 39-51. doi:10.1080/08276331.2010.10593472.
Wasti, S. E. (2015). Economic Survey of Pakistan 2014-15. Islamabad: Government of Pakistan.
Semrau, T., Ambos, T., & Kraus, S. (2016). Entrepreneurial orientation and SME performance across societal cultures: An international study. Journal of Business Research, 69 (5), 1928-1932. doi:10.1016/j.jbusres.2015.10.082.
Dai, L., Maksimov, V., Gilbert, B. A., & Fernhaber, S. A. (2014). Entrepreneurial orientation and international scope: The differential roles of innovativeness, proactiveness, and risk-taking. Journal of Business Venturing, 29 (4), 511-524. doi:10.1016/j.jbusvent.2013.07.004.
Lechner, C., & Gudmundsson, S. V. (2012). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32 (1), 36-60. doi:10.1177/0266242612455034.
Hznafi, N. B. (2012, June). Business Performance of Women-Owned SMEs in Malaysia: Learning and Entrepreneurial Orientation and the Mediating Role of Competitive Advantage. PhD. Disertation. Sintok, Kedah, Malaysia: University Utara Malaysia.
Simon, M., Stachel, C., & Covin, J. G. (2011). The effects of entrepreneurial orientation and commitment to objectives on performance. New England Journal of Entrepreneurship, 14 (2), 1-9.
Renko, M., Carsrud, A., & Brännback, M. (2009). The effect of a market orientation, entrepreneurial orientation, and technological capability on innovativeness: A study of young biotechnology ventures in the United States and in Scandinavia. Journal of Small Business, 47 (3), 331–369. doi:10.1111/j.1540-627X.2009.00274.x.
Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation. Technovation, 30 (1), 65–75. doi:10.1016/j.technovation.2009.04.008.
Rubera, G., & Kirca, A. H. (2012). Firm innovativeness and its performance outcomes: A meta-analytic review and theoretical integration. Journal of Marketing, 76 (3), 130-147. doi:http://dx.doi.org/10.1509/jm.10.0494.
Boso, N., Cadogan, J. W., & Story, V. M. (2012). Entrepreneurial orientation and market orientation as drivers of product innovation success: A study of exporters from a developing economy. International Small Business Journal. doi:10.1177/0266242611400469.
Lumpkin, G., Cogliser, C. C., & Schneider, D. R. (2009). Understanding and measuring autonomy: An entrepreneurial orientation perspective. Entrepreneurship Theory and Practice, 33 (1), 47-69. doi:10.1111/j.1540-6520.2008.00280.x.
Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating entrepreneurial orientation: The non-linear impact of innovativeness, proactiveness and risk-taking on SME performance. Small Business Economics, 40(2), 273-291. doi:10.1007/s11187-012-9460-x
Brettel, M., Chomik, C., & Flatten, T. C. (2015). How organizational culture influences innovativeness, proactiveness, and risk-taking: Fostering entrepreneurial orientation in SMEs. Journal of Small Business Management, 53(4), 868–885. doi:10.1111/jsbm.12108
Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761-787. doi:10.1111/j.1540-6520.2009.00308.x
Akhtar, C. S., Ismail, K., Hussain, J., & Umair-ur-Rehman, M. (2015). Investigating the moderating effect of family on the relationship between entrepreneurial orientation and success of enterprise: Case of Pakistani manufacturing SMEs. International Journal of Entrepreneurship and Small Business, 26(2).
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 50(2), 171-180. doi:10.1002/smj.4250050207
Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business Research Methods. Masson: Cengage Learning.
Creswell, J. (2013). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Chicago: SAGE Publications.
Kraus, S., Rigtering, J. P., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: A quantitative study from the Netherlands. Review of Managerial Science, 6(2), 161-182.
Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods. Chicago: McGraw-Hill Irwin.
Gardner, P. L. (1998). Measuring attitudes to science: Unidimensionality and internal consistency revisited. Research in Science Education, 25(3), 283-289. doi:10.1007/BF02357402
Kline, R. B. (2005). Principles and Practice of Structural Equation Modeling. New York: The Guilford Press.
Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling: A Multidisciplinary Journal, 17(1), 82-109. doi:10.1080/10705510903439003
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414-433. doi:10.1007/s11747-011-0261-6
Joseph F. Hair, J., Hult, G. T., Ringle, C., & Sarstedt, M. (2013). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186