The Impacts of Entrepreneurial Orientation Dimensions to the Success of Malaysian Smes

  • Authors

    • Noorain Mohd Nordin
    • Munirah Mohamed
    • Nurul Azrin Ariffin
    • Norshiba Norhisham
    • Siti Zaitun Saddam
    • Ummi Kalsum Hassian
    • Zuhairah Hasan
    https://doi.org/10.14419/ijet.v7i3.35.29461
  • Entrepreneurial Orientation

  • Abstract

    Firms are always seeking for new opportunities to achieve higher performance, especially Small and Medium Enterprises (SMEs), which some has been evaluated by SME Corporation. However, none of SMEs in Malaysia achieves the highest performance according to their score measurement. The aims of study were to determine the relationship between the EO and firm performance and determine the significant predictor variable of firm performance among SMEs. There are five dimensions of EO namely innovation, risk taking, market proactiveness, autonomy and competitive aggressiveness used to analyse which dimension are the most important using a statistical analyses such as correlation and multiple regression analysis. Based on the findings, SMEs should focus more on risk taking, market proactiveness and innovativeness in order to increase the performance of their firms in the challenging business market.

     

     

  • References

    1. [1] Brouthers, K.D Nakos, G and Dimitratos, P (2014) “SME entrepreneurial orientation, international performance and the moderating role of strategic alliancesâ€, Entrepreneurship Theory and Practice doi:10.1111/etap.12101

      [2] Elifson, K. W., Runyon, R. P., & Haber, A. (1998). Fundamentals of social statistics. Third Edition. Boston: McGraw-Hill.

      [3] Hart, S.L. (1992) An Integrative Framework for Strategy-Making Process, Academy of Management Review, 17 (2): 327-351.

      [4] Hashim, M.K. (2000). SMEs in Malaysia: Past, present and future. Malaysia Management Review, 35, 22-32.

      [5] Hashim, M.K. (2002). Small and medium-sized enterprise in Malaysia: Role and issues. Publisher UUM.

      [6] Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2003). Strategic Management Competitiveness and Globalization (5th edition).

      [7] Kropp, F. Lindsay, N. J., Shoham, A., (2005), “Entrepreneurial, market, and learning orientations and international entrepreneurial business venture performance in South African firmsâ€, International Marketing Review, Vol. 23, No, 5, p. 504-523.

      [8] Lumpkin, G.T. and Dess, C.G., (1996). “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance.†Academy of Management Review, 21, 135-172.

      [9] Lumpkin, G. T. and Dess, G. (2001), “Linking Two Dimensions of Entrepreneurial Orientation to Firm Performance: The Moderating Role of Environment and Industry Life Cycle.†Journal of Business Venturing 16: 429-451.

      [10] Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29, 770-791.

      [11] Miller, D., and Friesen, P.H. (1983) Strategy-making and Environment: The Third Link, Strategic Management Journal, 4 (3): 221-235.

      [12] Murphy, T. (1996). Entrepreneurial orientation and business performance: Cumulative empirical evidence. Frontiers of Entrepreneurship Research, Wellesley, MA: Babson College.

      [13] Odhiambo, L.O (2015). The Relationship between Capital Structure, Performance and Replacement of CEO’s in forms listed on the Nairobi Securities Exchange. Unpublished PhD Thesis, University of South Africa, School of Business.

      [14] SMIDEX (2010) – Convention SME

      [15] Innovation Showcase

      [16] Soinen, J.S Puulainen. K, Sjogren H. Syrja P. and Durst, S (2013), “Entrepreneurial Orientation of Small Firms-Values, attitudes, behavior approachâ€, International Journal of Entrepreneurial Behavior and Research, Vol.19 No6, pp.611-632

      [17] Timmons, J. and Stephen Spinelli, S. (2004), New Venture Creation: Entrepreneurship for the 21stCentury, New York: McGraw-Hill/Irwin.

      [18] Wang, C.L. (2008), “Entrepreneurial Orientation, Learning Orientation, and Firm Performance, Entrepreneurship Theory and Practice, Vol. 32, No.4, pp.635-657.

      [19] Wei, L and Ling, Y (2015), “CEO characteristics and corporate entrepreneurship in transition economies: evidence from China†Journal of Business Research Vol 68 No6 pp.1157-1165

      [20] Wiklund, J. (1999). “The Sustainability of the Entrepreneurial Orientation-Performance Relationship.†Entrepreneurship Theory and Practice, 24(1), 37-48.

      [21] Wiklund, J., and Shepherd, D., (2005). “Entrepreneurial Orientation and Small Business Performance: A Configurational Approach.†Journal of Business Venturing, 20, 71-91.

      [22] Zahra, S. A., & Covin, J. G. (1995). “Contextual Influences on the Corporate Entrepreneurship Performance Relationship: A Longitudinal Analysis. “Journal of Business Venturing, 10: 43-58.

  • Downloads

  • How to Cite

    Mohd Nordin, N., Mohamed, M., Azrin Ariffin, N., Norhisham, N., Zaitun Saddam, S., Kalsum Hassian, U., & Hasan, Z. (2018). The Impacts of Entrepreneurial Orientation Dimensions to the Success of Malaysian Smes. International Journal of Engineering & Technology, 7(3.35), 269-271. https://doi.org/10.14419/ijet.v7i3.35.29461

    Received date: 2019-06-09

    Accepted date: 2019-06-09