The autonomous side of EO and firm performance: the role of professional experience and entrepreneurial engagement

Tesfaye Leta Tufa, Aselefech Hailgiorgis Belete and Ashwinkumar A. Patel

African Journal of Economic and Management Studies, 2021, vol. 12, issue 3, 439-452

Abstract: Purpose - The purpose of this study is to investigate the direct and indirect role of autonomy on firm performance. It also determines the role of professional experience in the relationship. Design/methodology/approach - The authors analyzed data collected from 124 small firms in Addis Ababa city using the ordinary least square (OLS) regression and hierarchical regression analysis. Findings - The result of the OLS regression revealed that autonomy directly and indirectly (through entrepreneurial engagement) influences the firm's performance. Besides, professional experience moderates the relationship between autonomy and performance, as well as the relationship between autonomy and entrepreneurial engagement. Practical implications - Entrepreneurs should tend to engage in the works that they have professional experience than involving in jobs that they have no experience. Originality/value - This study examines the relationship between autonomy and firm performance in established firms. It is among the first studies that tested the moderation influence in the relationship. That is, determining the role of professional experience is a novel contribution of this study, which is forgotten previously.

Keywords: Autonomy; Performance; Professional experience; Entrepreneurial engagement (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajemsp:ajems-09-2020-0445

DOI: 10.1108/AJEMS-09-2020-0445

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