Entrepreneurial orientation: A psychological model of success among southern African small business owners
- 1 September 2005
- journal article
- research article
- Published by Informa UK Limited in European Journal of Work and Organizational Psychology
- Vol. 14 (3), 315-344
- https://doi.org/10.1080/13594320500170227
Abstract
This study examines the relationship of the psychological construct Entrepreneurial Orientation (EO) with business success in a sample of N = 248 southern African business owners. We reintroduce the individual in EO research and show the importance of the person of the entrepreneur for business performance: Hierarchical regression analyses revealed significant relationships between EO components (personal initiative, achievement-, and risk-taking orientation) as well as overall EO and business performance. In addition, confirmatory factor analysis supported a single factor construct of EO that consists of learning, achievement, and autonomy orientation, competitive aggressiveness, innovative and risk-taking orientation, and of personal initiative. In this study, we develop an individual-based psychological concept of Entrepreneurial Orientation (EO) and investigate the relationship between business owners' EO and business performance in southern Africa. EO has primarily been discussed from a firm-level perspective (e.g., Covin & Slevin, 1991 Covin JG Slevin DP 1991 A conceptual model of entrepreneurship as firm behavior Entrepreneurship Theory and Practice Fall 7 25 ; Lumpkin & Dess, 1996 Lumpkin, GT and Dess, GG . 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1): 135–172. ). It characterized businesses in their early years and was found to be important for firm success. In contrast, we apply a psychological approach with EO as an interindividual difference variable. Thus, our focus is the business owner and the general relationship between individual EO and performance of southern African small business owners.Keywords
This publication has 45 references indexed in Scilit:
- Entrepreneurial Dispositions and Goal Orientations: A Comparative Exploration of United States and Russian EntrepreneursJournal of Small Business Management, 2003
- Perceptions of SME Growth Constraints in NigeriaJournal of Small Business Management, 2002
- Nature and Operation of AttitudesAnnual Review of Psychology, 2001
- Psychological testing and psychological assessment: A review of evidence and issues.American Psychologist, 2001
- A Case for Comparative Entrepreneurship: Assessing the Relevance of CultureJournal of International Business Studies, 2000
- ATTITUDES AND ATTITUDE CHANGEAnnual Review of Psychology, 1997
- Effectiveness of Individual and Aggregate Compensation StrategiesIndustrial Relations: A Journal of Economy and Society, 1989
- Differentiating Entrepreneurs from Small Business Owners: A ConceptualizationAcademy of Management Review, 1984
- The role o f the founder in creating organizational cultureOrganizational Dynamics, 1983
- Innovation in conservative and entrepreneurial firms: Two models of strategic momentumStrategic Management Journal, 1982