The Importance of Entrepreneurial Orientation's Dimensions in Influencing the Organizational Performance of Food and Beverage SMEs

Abstract

The study is attempted to examine and analyze the important influence of entrepreneurial orientation components - risk-taking, innovativeness, and proactiveness- on the organizational performance of Yemeni Small and Medium Enterprises within the food and beverage industry. The model of study is tested on 459 owners/Managers of SMEs by employing the analysis of Partial Least squares structural equation modeling (PLS-SEM), as well as Importance-Performance Map Analysis (IPMA). After utilizing the cross-sectional approach, the results illustrated that the innovativeness and risk-taking have a significant and positive impact on organizational performance, but their effect was less than proactiveness. Moreover, the analysis of importance-performance pointed out that proactiveness more important than innovativeness and risk-taking in determining organizational performance. The model of study expounded 34% of the whole variance in SME's performance. Moreover, it provided the implications of practical and theoretical.