The Relationship between Entrepreneurial Orientation and Export Performance of Leather and Leather Product Industries in Ethiopia: The Mediating Role of Exploratory and Exploitative Innovation Capabilities
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Date
2021-04
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A.A.U
Abstract
This study investigated the mediating role of Exploratory Innovative Capability (ICER) and Exploitative Innovative Capability (ICET) in the relationship between Entrepreneurial Orientation (EO) and Export Performance (EP) of leather and leather product industries in Addis Ababa. The research followed cross-sectional explanatory research design, quantitative approach, survey method and questionnaire was used as data collection instrument. The study employed exploratory factor analysis (EFA) through principal component analysis and structural equation modeling (SEM) to validate study results. 10 exporting industries out of 25 were selected purposively to represent different industries and geographical locations. To represent tanneries, shoe factories and other leather product industries, a proportional stratified sampling was used and respondents of 251 were selected randomly. 188 usable responses were collected. The analysis result showed EO has a direct and indirect effect on the outcome variable. The finding signposts ICER and ICET has a complimentary and competitive mediation role, respectively. Moreover, second order variables maintained a significant association with EO. Finally, the independent analysis indicated EO dimensions has a positive and significant relationship with EP except autonomy. The research concludes leather and leather product industries in Addis Ababa shall primarily focus on ICER and then on ICET.
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Keywords
Entrepreneurial Orientation, Exploratory innovation capability