The Buginese entrepreneurs; the influence of local values, motivation and entrepreneurial traits on business performance

Abstract

Purpose This study aims to investigate the role of Buginese cultural value system (BCVS), motivational values type (MVT) and entrepreneurial traits (ET) on business performance (BP). The study investigated the role of each variable in predicting BP among Buginese entrepreneurs. Design/methodology/approach The study was conducted in South Sulawesi, in small and medium scale enterprises with a focus on Buginese entrepreneurs. Random sampling technique was used along with some inclusion criteria. Based on those criteria, the questionnaires were administered to 300 participants with 70 per cent valid responses (180 males, 30 females). The study used well-constructed measures (i.e. BCVS, MVT, ET and BP) by following a guideline of adapting and developing instruments. The data were analyzed using structural equation model technique to examine the proposed theoretical model. Findings The results showed that the hypothesized model fitted the empirical data. The MVT and ET-mediated the effect of BCVS on BP or BCVS indirectly influenced BP. In brief, this research successfully showed that local cultural value system (BCVS) had a significant effect on the performance of Buginese entrepreneurs through the mediating role of MTV and ET, which means that local cultural value functions as a predictor of the performance of Buginese entrepreneurs. Originality/value A number of previous studies have investigated the significant role of local culture in predicting business and entrepreneurship performance. This study focused on local values and considering some advanced theories in both entrepreneurship and psychology. As a result, this study provided a new perspective in understanding local culture as an antecedent to entrepreneurship performance.