The Relationship between Entrepreneurial Orientation and Business Performance of SMEs in Malaysia
Keywords:
Entrepreneurial orientation, business performance, small medium enterprisesAbstract
This paper investigates the relationship between entrepreneurial orientation and the business performance of SMEs in Malaysia. The owner/managers were sent a package of questionnaires which comprised the Entrepreneurial Orientation Questionnaire EOQ, the Business Performance BP questionnaire and the demographic questionnaire. The finding revealed that there was a significant positive relationship between entrepreneurial orientation and business performance of SMEs in Malaysia. This study also provides an opportunity to expand the research on other industries such as manufacturing, constructions, agricultures and telecommunications.
References
Arinaitwe, S. (2006). Factors constraining the growth and survival of small scale businesses. A developing country analysis. Journal of American Academy of Business , 8 (2).
Audretsch, D. (2002). The dynamic role of small firms: Evidence from U.S. Small Business Economics , 18, 1-3.
Ayyagari, M., Beck, T., & Demirguc-Kunt, A. (2005). Retrieved 20 1, 2006, from Small and Medium Enterprises across the Globe: http://www.worldbank.org/research/bios/t-beck/abd.pdf
Barringer, R., & Bluedon, A. (1999). The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal , 20 (5), 421-44.
Census. (2011). Department of Statistics Malaysia. Kuala Lumpur: Malaysian Government.
Chakravarty, B. (1986). Measuring strategic performance. Strategic Management Journal , 7 (5), 437-458.
Chow, I. (2006). The relationship between entrepreneurial orientation and firm performance in China. SAM Advanced Management Journal (USA) , 71 (3), 11-21.
Covin, J., & Slevin, D. (1991). A conceptual entrepreneurship as firm behaviour. Entrepreneurship Theory and Practice , 16 (1), 7-25.
Covin, J., & Slevin, D. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal , 10 (1), 75-87.
Dess, G., Lumpkin, G., & Covin, J. (1997). Entrepreneurial strategy making and firm performance: Tests of contigency and configurational models. Strategic Management Journal , 18 (9), 677-695.
Frese, M., Brantjes, A., & Hoorn, R. (2002). Psychological success factors of small scale business in Namibia: The roles of strategy process, entrepreneurial orientation and the environment. Journal of Development Entrepreneurship , 7 (3), 259-282.
Gartner, W., & Shane, S. (1995). Measuring entrepreneurship over time. Journal of Business Venturing , 10 (4), 283-301.
Ghobadian, A., & Gallear, D. (1996). Total quality management in SMEs. Omega , 24 (1), 83.
Gurbuz, G., & Aykol, S. (2009). Entrepreneurial management, entrepreneurial orientation and Turkish small firm growth. Management Research News , 32 (4), 321-336.
Ibeh, K. (2004). Furthering export participation in less performing developing countries: The effects of entrepreneurial orientation and managerial capacity factors. International Journal of Social Economics , 31 (1), 94-110.
Karides, M. (2005). Whose solution is it? Development ideology and the work of micro-entrepreuneurs in Caribbean context. The International Journal of Sociology and Social Policy , 25 (1), 30-62.
Khandwalla, P. (1977). Some top management styles, their context and performance. Organization & Administrative Sciences , 7, 21-51.
Krauss, S., Frese, M., Friedrich, C., & Unger, J. (2005). Entrepreneurial orientation: A psychological model success among southern African small business owners. European Journal of Work and Organizational Psychology , 14 (3), 315-344.
Kreiser, P., Marino, L., & Weaver, K. (2002). Assessing the psychometric properties of the entrepreneurial orientation scale: A multi-country analysis. Entrepreneurship Theory and Practice , 26 (4), 71-94.
Ladzani, W., & Van Vuuren, J. (2002). Entrepreneurship training for emerging SMEs in South Africa. Journal of Small Business Management , 40 (2), 154-161.
Lumpkin, G., & Dess, G. (1996). Clarifying the entrepreneurship orientation construct and linking it to performance. Academic Management Review , 21 (1), 135-172.
Lumpkin, G., & Dess, G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing , 16 (5), 429-451.
McGrath, R., & MacMillan, I. (2000). The entrepreneurial mindset. Boston: Harvard Business School Press.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science , 29 (7), 770-791.
Miller, D., & Friesen, P. (1982). Archetypes of strategy formulation. Management Science , 24, 921-933.
Miller, K., & Bromiley, P. (1990). Strategic risk and corporate performance: An analysis of alternative risk measure. Academy of Management Journal , 33 (4), 756-779.
Nunnally, J. (1978). Psychometric Theory (2nd Edition ed.). New York: McGraw Hill.
O'Regan, N., & Ghobadian, A. (2004). Testing the homogeneity of SMEs. The impact of size on managerial and operation processes. European Business Review , 16 (1), 64-79.
Sathe, V. (2003). Corporate entrepreneurship: Top managers and new business creation. Cambrige: University Press.
Sekaran, U. (2005). Research Methods For Business: A Skill Building Approach. Singapore: John Wiley and Sons.
Smart, D., & Conan, J. (1994). Entrepreneurial orientation, distinctive marketing competencies and organizational performance. Journal of Applied Business Research , 10 (3), 28-38.
Tang, J., Tang, Z., Zhang, & Li, Q. (2007). The impact of Entrepreneurial Orientation and Ownership Thype on Firm Performance in the emerging region of China. Journal of Development Entrepreneurship , 12 (4), 383-397.
Thornton, P. (1999). The sociology of entrepreneurship. Annual Review of Sociology , 25, 19-46.
Wiklund, J. (1999). The sustainability of the entrepreneurial orientation-performance relationship. Entrepreneurship Theory and Practice , 24 (1), 37-48.
Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-size business. Strategic Management Journal , 24 (13), 1307-1314.
Zahra, S. (1991). Predictors and financial outcomes of corporate entrepreneurship: An explorative study. Journal of Business Venturing , 6 (4), 259-285.
Zahra, S., & Covin, J. (1995). Contextual influence on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of Business Venturing , 10 (1), 43-58.