Entrepreneurial Orientation and Small Enterprises’ Performance: Roles of Marketing Resources Allocation and Access to Financing

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Date

2018-06

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Publisher

Addis Ababa University

Abstract

Entrepreneurial Orientation is one interesting area of research in business strategy and entrepreneurship disciplines in the last few decades, as it is influential concept in successful business performance. Although a number of related researches have been conducted in different parts of the world, only limited were in Ethiopia. This research, thus, aims to address this gap by taking 233 random samples from small enterprises in Addis Ababa. Both direct EO – Performance relationship and interaction effects of access to financing (FNS) and marketing resources allocation (MKT) as moderators were examined in this relationship. Moderated hierarchical regression has been applied to see how EO as independent variable and MKT and FNS as moderators influence small enterprises’ performance. From the analyses it is confirmed that EO has positive and statistically significant (p<0.01) effect on small enterprises’ performance. MKT and FNS are also found to moderate the relationship between EO and performance but negatively against the hypothesized direction (p<0.01). Based on the findings it is concluded that EO is a beneficial strategic posture for small enterprises in resources constrained environment. Besides, it is learned that resources accessibility and allocation may not directly ensure maximum exploitation of EO to achieve high performance.

Description

A Thesis Submitted to Addis Ababa University College of Business and Economics, Graduate Studies in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration, Specialization in Management

Keywords

Access to Financing, Contingency framework, Contingency theory, Entrepreneurial Orientation

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