Correlation between business innovation environment (BIE) and entrepreneurial orientation dimension (EOD) on financial performance of manufacturing SMEs in Ghana
World Journal of Entrepreneurship, Management and Sustainable Development
ISSN: 2042-5961
Article publication date: 21 May 2021
Issue publication date: 7 September 2021
Abstract
Purpose
The purpose of this study was to provide comprehensive overview, and exposure of the correlation between entrepreneurial orientation dimension (EOD) and business innovation environment (BIE) on small and medium enterprises (SMEs) financial performance in the Ghanaian manufacturing SMEs sector that enhances knowledge and contextualization in marketing and entrepreneurship literature.
Design/methodology/approach
Anchored on resource-based view theory, 520 manufacturing SMEs companies were conveniently drawn from Association of Ghana Industry, through National Board for Small Scale Industries, using structural equation modelling techniques to analyse the hypotheses.
Findings
This study revealed that three entrepreneurial orientation dimensions EOD: risk-taking, innovations and pro-activeness have positive significant impact on financial performance manufacturing of SMEs. BIE also has positive impact on financial performance of manufacturing of SMEs and BIE moderates SMEs financial performance.
Research limitations/implications
This is a country-specific manufacturing SMEs sector, which means that the findings cannot be used to justify other SMEs in Ghana and SMEs in different country. However, the study was limited to only three EODs: risk-taking, innovations, pro-activeness and Ghanaian manufacturing BIE of SMEs. More countries and other SMEs are needed to expand the field of research in EODs and BIE.
Practical implications
It provides an insight into BIE which is important for marketers, entrepreneurs, regulatory bodies, SMEs owners-managers, directors, government and NGO to strengthening and reshaping their BIE in manufacturing SMEs sector policies, conducts and laws.
Originality/value
This paper fills knowledge and contextual gap in entrepreneurship and marketing literature by presenting comprehensive overview of BIE and EOD research that enhances the on-going discussion in the marketing and entrepreneurship manufacturing SMEs context and proposing priorities for future research streams within an emerging economy.
Keywords
Acknowledgements
Declaration of interest statement: There is no conflict of interest with any party.
Citation
Deku, W.A., Wang, J., Danquah, E. and Narain, D. (2021), "Correlation between business innovation environment (BIE) and entrepreneurial orientation dimension (EOD) on financial performance of manufacturing SMEs in Ghana", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 4, pp. 787-803. https://doi.org/10.1108/WJEMSD-09-2020-0117
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited