The Moderating Role of Business Environment in the Relationship between Entrepreneurial Orientation and Business Performance among Nigerian SMEs

Aliyu Mukhtar Shehu, Rosli Mahmood

Abstract


ABSTRACT

Small and medium enterprises (SMEs) are essential to economic growth of Nigeria, and therefore are considered as a major source of job creation, and poverty reduction as they significantly contribute to the gross domestic products. Thus the aim of this study is to investigate the direct relationship between entrepreneurial orientation (EO) and business performance of SMEs in Nigeria, with the moderating effect of business environment. A quantitative research design was employed, using a structured questionnaire survey, and a total of 511 valid responses were duly completed and returned, representing 79.8 percent response rate. Based on theoretical consideration, a framework was developed to investigate these relationships. The result of regression analysis established a strong and positive relationship between EO and business performance. However, the hypothesized moderating effect of the business environment on the relationship between EO and business performance was not supported. The findings from this study will benefit SME owner/managers, regulatory agencies, and government at all levels, and will also serve as a frame of reference for future studies.

Keywords: Entrepreneurial orientation (EO); business performance (BP); business environment (BE); small and medium enterprises (SMEs)

ABSTRAK

Perusahaan kecil dan sederhana (PKS) adalah penting kepada pertumbuhan ekonomi Nigeria dan ianya dianggap sebagai punca utama kepada kewujudan peluang pekerjaan, pengurangan kadar kemiskinan dan memberi sumbangan signifikan ke atas keluaran kasar negara. Justeru, tujuan kajian ini ialah untuk meneliti hubungan langsung di antara orientasi keusahawanan (OK) dengan prestasi perniagaan PKS di Nigeria, dengan kesan penyederhanaan persekitaran perniagaan. Reka bentuk penyelidikan kuantitatif telah digunakan melalui tinjauan soal selidik berstruktur, dan sebanyak 511 respons yang lengkap telah dikembalikan menjadikan kadar respons sebanyak 79.8 peratus. Berdasarkan pertimbangan teoretikal, satu rangkerja telah dibentuk untuk meneliti hubungan-hubungan tersebut. Dapatan daripada analisis regresi menunjukkan wujud satu hubungan kukuh dan positif di antara OK dengan prestasi perniagaan. Namun dapatan kajian tidak menyokong hipotesis kesan penyederhanaan persekitaran perniagaan ke atas hubungan di antara OK dengan prestasi perniagaan. Dapatan kajian ini dijangka akan memberi manfaat kepada tuan punya/pengurus PKS, agensi-agensi penguatkuasa, pihak kerajaan di semua peringkat serta boleh dijadikan sebagai asas untuk kajian masa hadapan.

Kata kunci: Orientasi keusahawanan (OK); prestasi perniagaan (PP); persekitaran perniagaan (PP); perusahaan kecil dan sederhana (PKS)


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