THE EFFECT OF ENTREPRENEURIAL ORIENTATION AND DIMENSIONS ON THE ORGANIZATIONAL PERFORMANCE WITH SAUDI SMES

Nehal M. Rashad (), Sharifah Mousley () and Lindos Daou ()
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Nehal M. Rashad: : Effat University, Saudia Arabia
Sharifah Mousley: Jeddah University, Saudia Arabia
Lindos Daou: : Effat University, Saudia Arabia

Eurasian Journal of Business and Management, 2024, vol. 12, issue 1, 32-50

Abstract: Small and medium-sized enterprises (SMEs) in Saudi Arabia play a pivotal role in fostering economic growth, particularly aligned with the Saudi government's Vision 2030 initiative. SMEs contribute significantly to national production, job creation, and income growth. This research examines the impact of Entrepreneurial Orientation (EO) on Saudi SMEs' Organizational Performance (OP), with EO defined as a strategic decision-making framework encompassing various activities. The study explores how EO dimensions influence and predict higher OP, involving a sample of 100 Saudi SMEs from Jeddah, Riyadh, and Dammam who participated via an online survey. Statistical analyses included factor analysis to scrutinize EO dimensions and logistic regression to predict high and low-performance outcomes. Findings revealed a relationship between EO dimensions and OP, with logistic regression results indicating that the Autonomy dimension of EO positively impacts higher performance levels. Consequently, it is recommended that Saudi entrepreneurs emphasize the Autonomous dimension by incorporating methodologies that recognize employees' autonomy in strategic decision-making. This study contributes to academic discourse and practical applications by being among the first to investigate EO's impact on OP within Saudi SMEs. Future research should address limitations by expanding the sample size and incorporating advanced qualitative methods for a more comprehensive insight.

Keywords: : Entrepreneurship; SMEs; Entrepreneurial Orientation; Organizational Performance; Logistic Regression; Strategic Decision-Making (search for similar items in EconPapers)
Date: 2024
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