The influence of entrepreneurial orientation on firm growth among Iranian agricultural SMEs: the mediation role of entrepreneurial leadership and market orientation

Abstract

Entrepreneurship orientation is a fundamental topic both in entrepreneurship and in management that has a critical role in the development of the firm. The purpose of this paper is to study the relationship between entrepreneurial orientation (EO) and firm growth, specifically, how entrepreneurial leadership and market orientation mediate the relationship between EO and firm growth. The population of this study is agricultural small- and medium-sized enterprises (ASMEs) across Tehran Province. The survey instrument is questionnaires that were sent to 240 owners and/or top managers of ASMEs as a sample. Validity of the questionnaires has been verified in two ways of face and construct, and its reliability has been verified using Cronbach’s alpha. The collected data has been analyzed by using the structural equation modeling. The results reveal that EO significantly influences firm growth in ASMEs. Notably, entrepreneurial leadership (EL) and market orientation (MO) perform a mediating role in the relationships between EO and firm’s growth in ASMEs.

The importance of entrepreneurial leadership in fostering bank performance

“…Previous studies have found positive relationships between entrepreneurial leadership and firm performance. According to Karimi et al (2023), the growth of firm performance is based on the predicted growth of leadership and organizational development in identifying business opportunities. Entrepreneurial leadership is considered a decision-making process that will play a crucial role in improving firm performance (El Manzani et al, 2022;Harris and Ogbonna, 2001;Karimi et al, 2023).…”

“…According to Karimi et al (2023), the growth of firm performance is based on the predicted growth of leadership and organizational development in identifying business opportunities. Entrepreneurial leadership is considered a decision-making process that will play a crucial role in improving firm performance (El Manzani et al, 2022;Harris and Ogbonna, 2001;Karimi et al, 2023). This indicates that the qualities of entrepreneurial leaders play an essential role in improving bank performance.…”