Entrepreneurial Orientation and its Impact on Organizational Performance. Case of Selected Micro Financial Institutions (MFIs) In Yaoundé, Cameroon

Abstract

This study aimed at assessing entrepreneurial orientation (EO) and its impact on organizational performance. The study measure EO using innovativeness, proactiveness, and risk-taking which are key dimensions of EO. This researcher adopted a descriptive and casual research design for the study which allowed the researcher to identify the cause-and-effect relationship between study variables. A purposive sample of 127 respondents was taken from different Micro Financial Institutions (MFIs) in Yaounde, Cameroon for the study. A well-structured self-administered questionnaire was used in collecting data for the study. The relative performance of the organization compared to major competitors for the last three years has been considered as the measure for organizational performance. The scales used for the survey were validated using the Cronbach Alpha Test before performing the correlation and regression analyses which were the analytical method used to test our different hypotheses. The result of the correlation analysis revealed that innovativeness, proactiveness, and risk-taking had a positive relationship with organizational performance. In the same light, the regression analysis revealed that EO has a significant and positive impact on the organizational performance of MFIs in Yaounde. The findings of the study will help entrepreneurs, business management researchers, and practitioners (managers) in developing strategies for better performance.