Abstract
PurposeThe purpose of this study is to investigate the direct and indirect role of autonomy on firm performance. It also determines the role of professional experience in the relationship.Design/methodology/approachThe authors analyzed data collected from 124 small firms in Addis Ababa city using the ordinary least square (OLS) regression and hierarchical regression analysis.FindingsThe result of the OLS regression revealed that autonomy directly and indirectly (through entrepreneurial engagement) influences the firm's performance. Besides, professional experience moderates the relationship between autonomy and performance, as well as the relationship between autonomy and entrepreneurial engagement.Practical implicationsEntrepreneurs should tend to engage in the works that they have professional experience than involving in jobs that they have no experience.Originality/valueThis study examines the relationship between autonomy and firm performance in established firms. It is among the first studies that tested the moderation influence in the relationship. That is, determining the role of professional experience is a novel contribution of this study, which is forgotten previously.
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