Entrepreneurial Orientation and Growth in Mexican Small Business

Abstract

In the literature, there are various studies relating positively the entrepreneurial orientation to business performance. In such studies a great deal of variables have been introduced to measure business performance, among the variables most accepted by researchers and academics are profit and business growth. Therefore, it is possible to consider that entrepreneurial orientation plays an essential role in business growth. For that reason, this paper has the objective to analyse the existing relationship between entrepreneurial orientation and growth, by using a random sample of 318 small and medium-sixed enterprises in México. The results obtained show that proactivity, risk taking and innovativeness along with the competitive aggression and autonomy have significant and positive effects on small and medium-sized enterprises' growth.

Entrepreneurial orientation and performance of small and medium-sized enterprises

“…The results indicate that proactiveness has a significant positive relationship with firm performance of SMEs. This finding is consistent with research by Maldonado-Guzman et al (2017), Haider et al (2017), Mojikon et al (2016) who reported that proactiveness has a significant positive impact over firm performance of SMEs.…”

“…The results interpret that risk-taking propensity has a significant positive relationship with firm performance of SMEs. This finding is matching with the finding by Maldonado-Guzman et al (2017), Haider et al (2017), Gautam (2016), Belgacem (2015) who argued that risk-taking propensity had a significant positive impact over the firm performance.…”

“…The mediating effect of differentiation strategy on the relationship between EO and performance of SMEs is examined for the first time through this survey by using six EO dimensions, together with the individual relationship of its dimensions with the performance of SMEs, which differentiates this survey from others. The research study conducted by Maldonado-Guzman et al (2017) implying that test the relationship of EO and performance of SMEs by using more than five EO dimensions. The current study provides new insight into the relationship innovativeness and performance of SMEs, which also differentiates this survey from others.…”

“…In addition, this is also supported by a study conducted by Zahra and Garvis (2000). The latest research (Maldonado-Guzman et al , 2017) shows that EO has significant positive effect on the growth of SMEs.…”

Review on entrepreneurial orientation, economic stimulus packages, differentiation strategy and SME performance in Malaysia during the COVID-19 pandemic

“…Chen and Hambrick (1995) stated that passive and reactive aspects are essential for a firm's growth. Previous studies have shown that proactiveness relates positively to a firm's performance (Haider et al, 2017;Maldonado-Guzman et al, 2017;Yang and Meyer, 2019). Nevertheless, the COVID-19 pandemic may affect that positive relationship as it has disrupted the entire economic ecosystem (Wenzel, 2021).…”