EFFECT OF ENVIRONMENTAL UNCERTAINTIES ON THE RELATIONSHIP OF ENTREPRENEURIAL ORIENTATION AND BUSINESS SUCCESS: CHILD CARE CENTRES IN MALAYSIA

Abstract

The main objective of this study is to examine the moderating role of environmental uncertainties on the relationships between entrepreneurial orientation (EO) being innovativeness, risk-taking, and pro-activeness and performance of childcare centres in Malaysia. Data were collected from the childcare centres operating in the whole of Malaysia using a quantitative survey design. The study adopted a cluster sampling, respondents were selected from the population of 3,490 childcare centres in Malaysia, and questionnaires were distributed through the postal method and online survey method. A total of 117 usable questionnaires were returned, giving a response rate of 29.7%. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to test the study hypotheses. The findings revealed that Entrepreneurial orientations are important strategic orientations for the performance of childcare centres in Malaysia. The findings of the study supported the hypothesized positive relationship between innovativeness and pro-activeness to business success but no relationship between risk-taking and business success. For the moderating effect, perceived environmental uncertainties were found to have a moderating effect on innovativeness but not to risk-taking and pro-activeness. The findings of this study provide important insights to owners/managers of childcare centres in Malaysia, policymakers, and researchers to further understand the effects of EO on the performance of childcare centres in Malaysia. Owners in the childcare centres in Malaysia should also be encouraged to improve their entrepreneur orientation which may increase their performances. Finally, the study implications, limitations as well suggestions for future research are discussed.