The effect of entrepreneurial orientation on SMEs growth and export in Israeli peripheral regions

Abstract

This research explores the influence of entrepreneurial orientation (EO) on SMEs located at core and peripheral regions, by focusing on a single dimension of EO: proactiveness. We conducted a quantitative study of 626 Israeli SMEs. Business growth, as measured by the rate of change in number of employees, was found to be significantly higher in the core region. As expected, proactiveness was found to strongly affect SME growth as well as firm expansion to international markets. Our analysis shows that the difference in business growth between regions can be attributed also to a lower level of ownersʼ proactiveness in peripheral regions since it was found to mediate the effect of peripheral location on firm growth. Differences in proactiveness levels may be explained by the historical development of peripheral regions. Our results have useful implications for policies that aim to promote growth and development in peripheral regions.

Institutional Support in Managerial Capacity Building and Ghanaian SMEs Growth: The Mediating Effect of Marketing Orientation

“…intelligence generation, intelligence dissemination and responsiveness) to determine SMEs growth is consistent with resource-based value theory introduced by Wernerfelt (1984). Previous studies have established relationships between MO and SME growth (Farja et al 2016;Malshe et al 2017;Naidoo 2010). Malshe et al (2017) reported that marketing orientation influences the acquisition and utilization of marketing information, and stretches to the performance of firm.…”

“…Therefore, the H6 is supported. Hence both H5 and H6 support number of past studies (Farja et al 2016;Malshe et al 2017;Naidoo 2010). Meanwhile, the results further suggest that institutional support exert no significant effect on marketing orientations therefore H4 is unsupported.…”

The impacts of entrepreneurial orientation on the profitability growth of construction firms in Tanzania

“…The positive effects of proactivenes on growth of firms was also exhibited by Fairoz et al (2010) when they measured the link that exists between the dimensions of EO and firm performance in Sri Lanka Likewise, Kasumawardhani et al (2009) also found a positive and significant impact of proactiveness on the performance and growth of firms I Sri Lanka. Another study by Farja et al (2016) in Israel indicated that the higher the level of proactiveness in a company, the higher the level of growth was realized in such companies. In summary, as a result of the empirical findings provided, I derive the following hypothesis:…”

Entrepreneurial Orientation in Supply Chain Management: A Systematic Review

“…In order to overcome diverse obstacles, small firms and new ventures need to become entrepreneurial. On the one hand, affected by the liability of newness (Stinchcombe, 1965), new firms need to be entrepreneurial to overcome the relative lack of legitimacy, reliability, and accountability they possess compared to larger competitors (Farja et al, 2016;Golicic & Sebastiao, 2011). On the other hand, the assets of newness (Nagy & Lohrke, 2010) aid new and small firms to compensate for their limitations with congruence and flexibility.…”