Entrepreneurial orientation dimension affects firm performance: A perspective from the Malaysian furniture industry

Abstract

Objective: The main objective of this study is to verify the impact of entrepreneurial orientation dimension on firm performance of furniture industry in Malaysia.

Research Design & Methods: In this study, we used a quantitative research method and collected data through a questionnaire from 391 furniture manufacturing company owners and managers, while following purposive sampling approach. The collected data was analysed using structural equation (Partial Least Square). To measure five entrepreneurial orientation dimensions, we adopted specific measuring instruments.

Findings: The study shows that the three dimensions of entrepreneurial orientation – i.e. innovation, risk-taking, and competitive aggressiveness – make unique statistical contributions to the considered model. Findings indicate low levels of autonomy and proactiveness. However, the entrepreneurial orientation and FP models significantly influence the unique contribution of individual entrepreneurial activities in the Malaysian furniture industry.

Implications & Recommendations: This article aims to fill the gaps in entrepreneurial orientation and performance literature within Malaysia’s context. This article provides relationship information among performance and entrepreneurial orientation existence, allowing policy-makers and management interventions to improve OE levels.

Contribution & Value Added: This study indicates that there exists a strong entrepreneurial orientation among Malaysian manufacturers, which furthermore establishes and provides basis for future research, as entrepreneurial orientation strongly impacts firm performance. The article is the first one to study complete entrepreneurial orientation dimensions as uni-dimensional in Malaysian manufacturing context.