The Moderating Role of Firm Age in the Relationship between Entrepreneurial Orientation and SME Performance
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Date
2021-06
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A.A.U
Abstract
The aim of the study was to analyze the Moderating Role of Firm Age in the Relationship
between Entrepreneurial Orientation and SME Performance. To undertake this research
Descriptive and Explanatory research design was implemented. The total population was divided
into strata and a simple random sampling was employed. A total of 209 standard questionnaires
were distributed, collected and analyzed from the SME Owners/Managers (i.e. 92 % of response
rate). Descriptive statistics, Correlation and Hierarchical Regression Analysis were used to
analyze both the study variables and the moderating variable using the data by applying SPSS
version 26. In addition, Hayes process model version 3.5 was used for computing and describing
the moderation analysis. Evidence from the study showed that all the study variables
(Innovativeness, risk-taking and proactive-ness) significantly influenced the level of SME
Performance. Firm age is found to have a moderating role in the relationship between the three
Entrepreneurial Orientation dimensions (Innovativeness, risk-taking and proactive-ness) and
SME Performance. The study shows that younger firms are more Entrepreneurial than older
firms. Based on the findings, it is recommended that older firms should practice
Entrepreneurship in their businesses. However further research is necessary to consider the
impact of other factors and the moderating effect of other factors in predicting SME
performance.
Findings in the form of tables are recorded and relevant recommendations have been
provided. The study recommends the introduction of strategies by SME owners/managers that
will help in improving their businesses, increase the degree of entrepreneurial orientation, to
have a deep organizational dedication in investing in innovative ideas and promoting them.
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Keywords
Entrepreneurial Orientation, Firm age, performance