Linking entrepreneurial orientation and business performance: the examination toward performance of cooperatives firms in northern region of Peninsular Malaysia
Abdullah, Abdul Ghani
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Studies on entrepreneurial orientation (EO) and its influence on the performance of business firms have received widespread attention in the fields of entrepreneurship and strategy. A survey was conducted to assess the influence of five constructs of EO, including innovativeness, proactiveness, risktaking, autonomy and competitive aggressiveness toward the firm’s business performance to provide additional knowledge on this subject. Assessments took place at the company level involved 104 cooperatives firms in the Northern region of Peninsular Malaysia. Multiple regression analysis carried out revealed that only the innovativeness and proactiveness constructs had significant and positive relationship with the firm's business performance. On the other hand, the constructs of risk-taking, autonomy and competitive aggressiveness do not show significant relationship with the firm's business performance. These findings are useful for a better understanding of strategies of entrepreneurial orientation and its role in improving business performance in the cooperative sector.