Delineating entrepreneurial orientation efficacy on retailer’s business performance

Palaniappan Sellappan · Kavitha Shanmugam

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Entrepreneurship Studies and Influences Innovation and Knowledge Management Migration, Ethnicity, and Economy

Abstract

Purpose In today’s technology-led volatile business environment all established businesses are trembling and retailing is no exception. Exploration of the entrepreneurial side of retailers will expose the essential attitudes to survive in the new world order. The present study is an endeavor towards this end. Design/methodology/approach In this descriptive research, a pre-tested entrepreneurial orientation questionnaire constructed by De Nobrega (2012) was adopted, and it was fine-tuned to suit for the retail environment. Initially, an exploratory study was organized, and it was followed by confirmatory factor analysis. Data collected were analyzed with SPSS 23.0, and the conceptual model was validated in AMOS 23.0. Findings The study evinces that the retailer’s entrepreneurial orientation is induced by five factors, namely, autonomy, risk-taking, innovation, competitive aggressiveness and pro-activeness. The study exposes the five dimensions and their ascendancy on business performance. Research limitations/implications The study is operationalized in a small sample, confined to two types of trade, limited to small and medium retailers in Chennai and all the constructs are measured with the help of perceptual self-reporting scales. Practical implications The study highlights that the art of spearheading retail business performance lies in attitude orientation. This work will propel retailers and trade bodies to nurture the entrepreneurial orientation. Social implications The study emphasizes that boosting entrepreneurial mindset of retailers will enable them to achieve business progress and protects the grass root sector of the society. Originality/value This work is the very first study to identify and evaluate the impact of five-dimensional entrepreneurial orientation construct on small and medium retailer’s business performance. The present study is a pioneering empirical contribution to the Indian context.

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References

1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1983The Correlates of Entrepreneurship in Three Types of Firms 1991A Conceptual Model of Entrepreneurship as Firm Behavior 2009Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future 1980Motivation, leadership, and organization: Do American theories apply abroad?2004Entrepreneurial orientation and small business performance: a configurational approach 2001Linking two dimensions of entrepreneurial orientation to firm performance 2003Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses

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