Tipo: artículo
Idioma: Español

Título:

Article

Influence of Individual Entrepreneurial Orientation on the
Performance of Small and Medium Enterprises in Malaysia

This study examined the influence of three elements of individual entrepreneurial orientation (IEO), namely innovativeness, risk-taking, and  proactiveness on the performance of small and medium enterprises (SMEs). It is worth noting that SMEs have experienced low productivity,  low profit, and low performance during the COVID-19 pandemic era. Although several studies have shown that entrepreneurial orientation  (EO) is a key factor of company performance, few have focused on IEO. This study employed a quantitative research design because all  variables were measurable. It used a questionnaire to survey 384 SMEs in the service sector and employed structural equation modeling  (SEM) in data analysis. The findings suggested that SMEs’ performance was influenced by risk-taking and proactiveness. This could be  related to the fact that SMEs have a less formal structure, allowing owner-managers to take risks and make quick decisions. Furthermore,  high performance was ensured by being very sensitive to market trends and changes in the business environment. Innovativeness was not  a significant factor in influencing the performance of SMEs. Perhaps it was rather difficult for SME owner-managers to be innovative  due to the lack of various resources. This study successfully re-confirmed the effect of IEO on business performance and highlighted the  importance of risk-taking and proactiveness in improving the performance of SMEs..

Keywords: Entrepreneurial Orientation, Individual Entrepreneurial Orientation, Firm Performance, Small Businesses

Autores: 

Wei-Loon KOE

,Mastura RONI

Tee Suan CHIN

Publicación:

Journal of Asian Finance, Economics and Business 

ISSN: 2288-4637

Año: 2022

Aportado por: José Carlos Sánchez García