Mediating role of Innovation and Moderating Role of Size of Enterprise over the Relationship between Entrepreneurial Orientation and Performance of Micro and Small Enterprises

 
 
 
  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract


    In this study the authors tried to identify mediating role of innovation and moderating role of size of enterprise in the relationship between entrepreneurial orientation and performance of Micro and Small Enterprises (MSEs). The researchers also investigated the effect that vary from enterprise size that basically means micro and small enterprises. For the purpose of this study data was collected from 384 MSE's operating in Punjab province. Initially the data was analyzed using SPSS 22 and later on for the development of structure equation modeling Smart PLS-3 was used. Only two aspects of entrepreneurial orientation have been analyzed; first one is risk taking and second one is pro-activeness, third most common aspect innovation has been taken as mediating variable as an enterprise cannot be innovative if it has not the capacity of risk taking and pro-activeness. These both aspects are attached to performance and also deals with innovation. The major contribution of the study is to identify any moderating effect of size of the enterprise over the relationship between entrepreneurial orientation, innovation and performance of MSEs. These elements basically show the contribution that is made by the innovation and performance of the MSE's. The objectives of the study were achieved, and it was found that there is no difference between performance of MSEs on the basis of entrepreneurial orientation and innovation. It is proved that the size of the enterprise is not the factor. The linkages found are affected by size of the enterprises.

     


  • Keywords


    Entrepreneurship, Innovation, Micro and small enterprises, Performance, Risk taking.

  • References


      [1] Abe, M., Troilo, M., Juneja, J., & Narain, S. (2012). Policy Guidebook for SME Development in Asia and the Pacific. Bangkok: United Nations Economic and Social Commission for Asia and the Pacific .

      [2] Aftab, M., & Naveed, T. A. (2013). Role of microfinance institutions in entrepreneurship development in district Gujrat, Pakistan. Journal of Global and Scientific Issues, 1(1), 53-69.

      [3] Ahlin, B., Drnovšek, M., & Hisrich, R. D. (2013). Entrepreneurs’ creativity and firm innovation: The moderating role of entrepreneurial self-efficacy. Small Business Economics, 43(1), 101-117. doi:10.1007/s11187-013-9531-7

      [4] Ali, S. (2013). The small and medium enterprises and poverty in Pakistan: An empirical analysis. European Journal of Business and Economics, 8(2), 25-30.

      [5] Aloulou, W., & Fayolle, A. (2005). A conceptual approach of entrepreneurial orientation within small business context. Journal of Entreprising Culture, 3(1), 21-45.

      [6] Andersona, B. S., & Eshima, Y. (2013). The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing, 28(3), 413-429. doi:10.1016/j.jbusvent.2011.10.001

      [7] Andersson, M., & Lööf, H. (2012). Small business innovation: Firm level evidence from Sweden. The Journal of Technology Transfer, 37(5), 732-754. doi:10.1007/s10961-011-9216-9

      [8] Aribaba, F. O., Asaolu, T. O., & Olaopa, O. (2011). An evaluation of the impact of technological innovative entrepreneurial development programmes on the performance of small scale business in Nigeria. Global Journal of Business,Management And Accounting, 1(1), 001-009.

      [9] Asad, M., Sharif, M. N., & Alekam, J. M. (2016). Moderating role of entrepreneurial networking on the relationship between access to finance and performance of MSEs in Punjab Pakistan. Paradigms A Research Journal of Commerce, Economics, and Social Sciences, 10(1), 1-13.

      [10] Asad, M., Sharif, M. N., & ALekam, J. M. (2016). Moderating role of entrepreneurial networking on the relationship netween entrepreneurial orientation and performance of MSEs in Punjab Pakistan. Science International, 28(2), 1551-1556.

      [11] Asad, M., Sharif, M. N., & Hafeez, M. (2016). Moderating effect of network ties on the relationship between entrepreneurial orientation, market orientation, and performance of MSEs. Paradigms A Research Journal of Commerce, Economics, and Social Sciences, 10(2), 74-81.

      [12] Vu Van TUAN Communicative Competence of the Fourth Year College Students: Basis for proposed English Language Program, Astra Salvensis, Supplement No. 2, 2017, p. 45

      [13] [1] Irina MALGANOVA, Andrey ERMAKOV, Development of heating Devices from Polypropylene, Astra Salvensis, Supplement No. 2, 2017, p. 93

      [14] Jana Arturovna KLAAS, Thomas Arturovich KLAAS Econometric Model of Early Diagnosis of a Credit Institution Bankruptcy Risk, Astra Salvensis, Supplement No. 2/2017, p. 107.

      [15] Gulnaz Mavletzyanovna GALEEVA, Olga Aleksandrovna AKTASHEVA Forecasting the Dynamics of Foreign Direct Investment in the Russian Economy, Astra Salvensis, Supplement No. 2/2017, p. 137

      [16] Kamil Maratovich ARSLANOV, Artur Ilfarovich KHABIROV About the Weak Party of the Loan Contract, Astra Salvensis, Supplement No. 2/2017, p. 323.

      [17] Cooper, D. R., & Schindler, P. S. (2006). Business Research Methods. Chicago: McGraw-Hill Irwin.

      [18] Covin, J. G., & Lumpkin, G. (2011). Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship Theory and Practice, 35(5), 855-872. doi:10.1111/j.1540-6520.2011.00482.x

      [19] Shatilova L.M., Borisova V.V., Kasatkina O.A. (2018). Representation of the linguistic and cultural concept “lie” in the French and Russian language picture of the world, 34(85), Pp. 194-212.

      [20] 2 Bakhyt S., Kalimbetov B., Khabibullayev Z. (2018). Possibilities of Mathematical Problems in Logical Thinking, Development of Secondary Education Pupils, 34(85), P.p. 321-338..

      [21] Hafeez, M. H., Shariff, M. N., & Lazim, H. B. (2012). Relationship between entrepreneurial orientation, firm resources, SME branding and firm's performance: Is innovation the missing link. American Journal of Industrial and Business Management, 2, 153-159.

      [22] Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Editorial-partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1), 1-12.

      [23] Horne, J. C. (2013). Fundamentals of Financial Management . London: McGraw Hill.

      [24] Inmyxai, S., & Takahashi, Y. (2010). The effect of firm resources on business performance of male-and female-headed firms in the case of Lao micro-, small-, and medium-sized enterprises (MSMEs). International Journal of Business, 5(1), 63-90.

      [25] Kovaleva, S., & Vries, N. d. (2016). Competitive strategies, perceived competition and firm performance of micro firms: The case of Trento. Contemporary Entrepreneurship, 75-93. doi:10.1007/978-3-319-28134-6_5

      [26] Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M. (2013). Disaggregating entrepreneurial orientation: The non-linear impact of innovativeness, proactiveness and risk-taking on SME performance. Small Business Economics, 40(2), 273-291. doi:10.1007/s11187-012-9460-x

      [27] Lechner, C., & Gudmundsson, S. V. (2012). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36-60. doi:10.1177/0266242612455034

      [28] Lee, S. Y., Florida, R., & Acs, Z. (2004). Creativity and entrepreneurship: A regional analysis of new firm formation. Regional Studies, 38(8), 879-891. doi:10.1080/0034340042000280910

      [29] Madsen, E. L. (2007). The significance of sustained entrepreneurial orientation on performance of firms – A longitudinal analysis. Entrepreneurship & Regional Development: An International Journal, 19(2), 185-204. doi:10.1080/08985620601136812

      [30] McMullen, J. S., & Shepherd, D. A. (2006). Entrepreneurial action and the role of uncertainty in the Theory of the Entrepreneur. Academy of Management Review, 31(1), 132-152. doi:10.5465/AMR.2006.19379628

      [31] O'Regan, N., & Ghobadian, A. (2004). Testing the homogeneity of SMEs: The impact of size on managerial and organisational processes. European Business Review, 16(1), 64 - 77. doi:org/10.1108/09555340410512411

      [32] Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761-787. doi:10.1111/j.1540-6520.2009.00308.x

      [33] Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26(4), 441-457. doi:10.1016/j.jbusvent.2009.12.002

      [34] Rubera, G., & Kirca, A. H. (2012). Firm innovativeness and its performance outcomes: A meta-analytic review and theoretical integration. Journal of Marketing, 76(3), 130-147. doi:http://dx.doi.org/10.1509/jm.10.0494

      [35] Runyan, R., Droge, C., & Swinney, J. (2008). Entrepreneurial Orientation versus small business orientation: What are their relationships to firm performance? Journal of Small Business Management, 46(4), 567–588. doi:10.1111/j.1540-627X.2008.00257.x

      [36] Sahut, J.-M., & Peris-Ortiz, M. (2013). Small business, innovation, and entrepreneurship. Small Business Economics, 42(4), 663-668. doi:10.1007/s11187-013-9521-9

      [37] Shabbir, M. S., Mohd Shariff, M. N., Kiran, R., Faisal, M., & Shahzad, A. (2016). Cyber entrepreneurship: A note on indigenous perspective from a developing country. Social Sciences (Pakistan). http://doi.org/10.3923/sscience.2016.704.709

      [38] Shabbir, M. S., Shariff, M. N. M., Salman, R., & Shabbir, M. F. (2017). Exploring the link between entrepreneurial skills and entrepreneurial intentions: Proposing a hypothesized model for future research. Paradigms: A Research Journal of Commerce, Economics, and Social Sciences, 11(1), 72–77.

      [39] Shabbir, M. S., Shariff, M. N. M., & Shahzad, A. (2016a). A Conceptual Development of Entrepreneurial Skills and Entrepreneurial Intentions: A Case of IT employees in Pakistan. International Journal of Academic Research in Business and Social Sciences, 6(3). http://doi.org/10.6007/IJARBSS/v6-i3/2040

      [40] Shabbir, M. S., Shariff, M. N. M., & Shahzad, A. (2016b). A Conceptual Development of Entrepreneurial Skills and Entrepreneurial Intentions A Case of IT employees in Pakistan A Conceptual Development of Entrepreneurial Skills and Entrepreneurial Intentions : A Case of IT employees in Pakistan. International Journal of Academic Research in Business and Social Sciences, 6(3), 65–78. http://doi.org/10.6007/IJARBSS/v6-i3/2040

      [41] Shabbir, M. S., Shariff, M. N. M., & Shahzad, A. (2016c). Mediating role of perceived behavioral control and stakeholders’ support system on the relationship between entrepreneurial personal skills and entrepreneurial intentions of it employees in Pakistan. International Business Management. http://doi.org/10.3923/ibm.2016.1745.1755

      [42] Shabbir, M. S., Shariff, M. N. M., Yusof, M. S. Bin, Salman, R., & Hafeez, S. (2018). Corporate Social Responsibility and Customer loyalty in Islamic Banks of Pakistan: A Mediating Role of Brand Image. Academy of Accounting and Financial Studies Journal, 22(Special Issue), 1–6.

      [43] Simon, M., Stachel, C., & Covin, J. G. (2011). The effects of entrepreneurial orientation and commitment to objectives on performance. New England Journal of Entrepreneurship, 14(2), 1-9.

      [44] Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business Research Methods. Masson: Cengage Learning.


 

View

Download

Article ID: 20383
 
DOI: 10.14419/ijet.v7i4.7.20383




Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.