The linkage between entrepreneurial orientation, self-efficacy, and financial performance of tourism entrepreneurs in Langkawi Island, Malaysia

Abstract

Although considerable attention has been given to the literature that emphasises theoretical linkages between entrepreneurial orientation and firm performance, however, very few empirical studies have been conducted to investigate this relationship in the context of the tourism industry. This research investigated the effects of entrepreneurial orientation via self-efficacy as a mediator on financial performance by integrating resource-based view theory and entrepreneurial orientation. Using the snowball method, 105 usable questionnaires were received through Google Docs with a response rate of 67%. PLS-SEM was then employed for testing the hypotheses. The results show that entrepreneurial orientation (innovativeness, riskiness, and proactiveness) has significant positive influences on self-efficacy, which in turn affects businesses' financial performance.