Impact of Entrepreneurial Orientation on Firm Performance through Organizational Learning: The Moderating Role of Environmental Turbulence

Author(s):  
Syeda Mahlaqa Hina ◽  
Gul Hassan ◽  
Mahwish Parveen ◽  
Syeda Arooj
2019 ◽  
Vol 1 (1) ◽  
pp. 13-26
Author(s):  
Khawar Naheed ◽  
◽  
Muhammad Aamir ◽  
Naveed Ahmad ◽  
◽  
...  

The objectives of this study are to examine; the direct effect of entrepreneurial orientation, firm innovativeness on firm performance; the indirect effect of firm innovativeness between entrepreneurial orientation and firm performance; and the moderating role of market turbulence between firm innovativeness and firm performance. Using a quantitative approach, this study has collected data through a survey questionnaire from a sample of 300 Pakistani IT-based SMEs operating in South Punjab, Pakistan. The data was analyzed in SPSS and PLS-SEM software. The results revealed a significant direct positive impact of entrepreneurial orientation and firm innovativeness on business performance. The result also confirmed the partial mediation of firm innovativeness between entrepreneurial orientation and business performance. The moderating role of environmental turbulence indicated that SMEs owners’ market and technological environment decrease the firm performance. Overall, these findings highlighted the importance of entrepreneurial orientation, firm innovativeness, market turbulence and technological competition jointly influence the direction and strength of the SMEs performance. This study enhanced firm performance and innovation-based research by identifying the configurationally market conditions that augment or limit the value of firm innovativeness. Besides, the study has highlighted the role of environmental turbulence on firm performance as the studies on this issue is scarce.


2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.


Author(s):  
Stanley Ndungu ◽  
Kenneth Wanjau ◽  
Robert Gichira ◽  
Waweru Mwangi

This study explored moderating role of entrepreneurial orientation on the relationship between Information Technology Competence and firm performance in Kenya. The impact of IT on FP remains debatable to-date because some results of previous studies have had high variations resulting from diversities in the conceptualization of the key constructs and their interrelationship, coupled with the exclusion of intangible effect of IT on performance. In Kenya, SMEs employ about 85 percent of the workforce. The need to link ITC with FP has become vital for firms striving to achieve superior performance. However, limited attention has been paid to the link and more so to the moderating role of EO on ITC- FP relationship model. To better understand this relationship, this paper adopted a mixed methods research guided by cross-sectional survey design. Quantitative and qualitative techniques were employed to analyze the collected data using SPSS, Ms-Excel, AMOS, SmartPLS, STATA, R-GUI and ATLAS.ti analytical softwares. Analyses were conducted using a two-phase process consisting of CFA and SEM models. The theoretical models and hypotheses were tested based on empirical data gathered from 94 SMEs in the 2013 Top 100 Survey. The study found that ITC had a positive relationship with FP. The results also revealed that EO did not significantly moderate the relationship between ITC and FP in Kenya. However, when run with the interaction term, the Technical (ITC and ISRA)*EO was statistically significant at 10% α-level. This study will enhance the skill set in Kenyan SMEs and produce a more sustainable solution.


2021 ◽  
Vol 8 (7) ◽  
pp. 14-22
Author(s):  
Sami Salem Alzahrani ◽  

This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. A deductive approach was used to test the model empirically. Primary data were collected at one point in time from employees of small and medium enterprises in the Kingdom of Saudi Arabia. 354 responses were used for final data analysis. The structure Equation Modeling (SEM) technique was used to analyze the hypothesized relationships by using the Smart PLS3. The findings indicate that entrepreneurial orientation has a significant impact on firm performance and project success also significantly mediates this relationship. Moreover, absorptive capacity moderates the entrepreneurial orientation impact on project success this relation becomes stronger in the presence of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity. Practically, it highlights the importance of entrepreneurial activities for firm performance and project success.


Author(s):  
Stanley Ndungu ◽  
Kenneth Wanjau ◽  
Robert Gichira ◽  
Waweru Mwangi

Information security risk assessments enable SMEs to identify their key information assets and risks in order to develop effective and economically-viable control strategies. In Kenya, SMEs employ about 85 percent of the workforce. The need to link ISRA with firm performance has become vital for firms striving to achieve superior performance. However, limited attention has been paid to the link and more so to the moderating role of EO on ISRA-firm performance relationship model. To better understand this relationship, this paper employed a mixed methods research guided by a cross-sectional research design. Quantitative and qualitative techniques were employed to analyze the collected data using SPSS, Ms-Excel, AMOS, SmartPLS, STATA, R-GUI and ATLAS.ti analytical softwares. Analyses were conducted using a two-phase process consisting of CFA and SEM. The theoretical models and hypotheses were tested based on empirical data gathered from 94 SMEs in the 2013 Top 100 Survey. The study found that ISRA was a significant predictor of firm performance. The results also revealed that entrepreneurial orientation significantly moderated the relationship between ISRA and firm performance in Kenya. This study will enhance the skill set in Kenyan SMEs and produce a more sustainable solution.


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