The Effects of Entrepreneurial Orientation on The Performance of Small and Medium Enterprises in Emerging Economies: Evidence from Pakistan’s Electric Fans Industry

Abstract

Entrepreneurial orientation (EO) is a crucial multidimensional concept of entrepreneurship that encompasses the entrepreneur’s autonomy, attitude towards risk-taking, proactiveness, and competitiveness of entrepreneurs. EO influences the manner in which entrepreneurs perceive and react to their business environment. The majority of research on EO has been conducted in developed countries such as the USA, where institutional development is well established. There is a scarcity of studies focusing on emerging economies. In order to bridge this gap, the current study aims to investigate the construct and application of EO in Pakistan. The study focuses on Pakistan’s electric fan manufacturing industry to gain insight into the implementation of EO and its impact on the performance of small and medium-sized enterprises (SMEs) in emerging economies. In addition, the study aims to provide evidence-based knowledge regarding the causal relationship between EO and SME performance in Pakistan, as well as the impact of moderating variables, through hierarchical regression analysis and an analysis of a sample of 247 SMEs. The study provides solid evidence that Pakistan's electric fan manufacturing industry demonstrates all five dimensions of EO, as outlined in the existing literature. Furthermore, the study highlights the influence of age, education, and experience as moderating variables in the relationship between EO dimensions and the performance of SMEs in Pakistan.