Influence of Individual Entrepreneurial Orientation on the Performance of Small and Medium Enterprises in Malaysia
- 한국유통과학회
- The Journal of Asian Finance, Economics and Business(JAFEB)
- The Journal of Asian Finance, Economics, and Business Vol. 9 No.5
- : SCOPUS, KCI등재
- 2022.05
- 325 - 333 (9 pages)
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.
1. Introduction
2. Literature Review
3. Research Methodology
4. Results and Discussion
5. Conclusion
References