The impact of entrepreneurs’ decision-making style on SMEs’ financial performance
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 11 February 2022
Issue publication date: 31 October 2023
Abstract
Purpose
This study aims to investigate the impact of entrepreneurs’ decision-making styles on enterprise performance and suggests several entrepreneurial ecosystems – factors are impacting this relationship. The authors extend this line of work by examining how regional entrepreneurial culture, educational institutional support and business and social networks mediating the relationship between entrepreneurs’ decision-making style and small medium enterprises (SME)s’ financial performance.
Design/methodology/approach
The data were collected through an e-survey of SME owners in New South Wales, Australia. This study developed a model combining a set of entrepreneurial ecosystem factors, entrepreneurs’ decision-making styles and SMEs’ financial performance. Data were analysed using partial least square structural equation modelling.
Findings
The results suggest regional entrepreneurial culture, educational institutional support and business and social networks mediate the relationship between entrepreneurs’ decision-making style and SMEs’ financial performance. Hence, this study developed a more complete methodical understanding of entrepreneurs’ decision-making styles and their impact on SMEs’ financial performance. This study provides deeper insights into the conditions and processes by which an entrepreneurs’ decision-making style impacts SMEs’ financial performance.
Originality/value
The focus of this study was to understand the relationship of entrepreneurs’ decision-making styles on SMEs’ financial performance. The authors identified that the entrepreneurs’ decision-making style positively impacts SMEs’ financial performance. This study augments the body of knowledge by proposing ways in how the entrepreneurs’ decision-making style can be more strengthened.
Keywords
Citation
Weerasekara, S. and Bhanugopan, R. (2023), "The impact of entrepreneurs’ decision-making style on SMEs’ financial performance", Journal of Entrepreneurship in Emerging Economies, Vol. 15 No. 5, pp. 861-884. https://doi.org/10.1108/JEEE-03-2021-0099
Publisher
:Emerald Publishing Limited
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