Moderating Effect of Entrepreneurial Self-Efficacy on the Relationship between Entrepreneurial Orientation and Performance of Small and Medium Enterprises in Gombe State
Moderating Effect of Entrepreneurial Self-Efficacy on the Relationship
between Entrepreneurial Orientation and Performance of Small and
Medium Enterprises in Gombe State
Small and medium-sized enterprises (SMEs) are among the major drivers of economic development in any nation. However, in Nigeria SMEs performance is not encouraging as most of these SMEs do not grow to become corporate entities. About 70% of most SMEs do not survive in their first three to five years of operations and some of them disappear within the sixth and tenth year of existence. This study therefore sets out to investigate the moderating effect of self-efficacy on the relationship between entrepreneurial orientation and performance of SMEs in Gombe state. The study adopted the cross-sectional survey research design with a population of 904 registered SMEs with Gombe State Board of Internal Revenue in the 11 local government areas of the state. The data were collected using primary sources from the questionnaire administered to the owners/managers. The sample size with 10% attrition is 440 which was computed using the Yamane, (1973) formula with 95% confidential level at 5% level of precision. Partial Least Square Structural Equation Model (PLS –SEM) 2.0 software was applied for the purpose of testing the model. This study found that selfefficacy positively moderates the relationship between both proactive and risk-taking on performance of SMEs in Gombe state. The study recommends that entrepreneurs and managers should exhibit high level of self-efficacy in order to be proactive and take a risk by engaging in the development of new products and services, entry into new markets in Gombe state.
Self-Efficacy, Entrepreneurial orientation, Performance of SMES
Zainab Faruk Yunusa , Mohammed Aminu , Muazu Saidu Badara , Nura Naala
Aportado por: José Carlos Sánchez García.