The Impact of Entrepreneurial Orientation on the Export Performance of Emerging Economies: A Multi-dimensional Approach

Abstract

Purpose - Owing to the dynamic and complex nature of the global business environment, firms are required to develop clearer organizational strategic approaches for combating market ambiguity when creating sustainable growth while undertaking internationalization. As a strategic-making process, entrepreneurial orientation (EO) has received much attention in current business literature. Consequently, the purpose of this study was to further examine the entrepreneurial construct with regards to its multi-dimensional classification which provides additional benefits for smaller or medium sized firms (hereafter SME). Further discussed in this research is the extent to which SMEs need to possess knowledge or competencies related to all the (or individual) dimensions of EO when conducting global commerce. Design/Methodology/Approach - To test the presumptions of the study further, data were collected from 204 South African exporting SMEs. An EFA and CFA where adopted to assess data reliability and validity. Finally, a hierarchical linear regression analysis technique was considered for evaluating the research models and clearly present the findings. Findings - Results from the data analysis shows that while several EO dimensions contributed significantly towards the improved export performance of SMEs, others did not. As SMEs are often hampered by resource limitations, a focus on the roles of each EO dimension provides an opportunity for greater efficiency when SMEs conduct global business by assisting SMEs in increasing their overall exporting performance. Research Implications - While much research exists in the field of EO, a clearer approach for measuring the construct has provided opportunities to explore EO further. The current study builds upon the current novel approach of EO, thus adding more to the papers originality. Finally, the context of the study offers a defining feature towards the originality of the research. While most EO research is focused on advanced nations, the current study conducts research in an African nation, where EO and export research remains scarce.