The impact of entrepreneurial orientation on performance in the metals and engineering industry

Abstract

This study seeks to understand whether there exists a relationship between entrepreneurial orientation (EO) and firm performance (FP) and whether this is applicable in the context of the South African metals and engineering industry. An exploratory quantitative study of 125 SMEs and large firms in the metals and engineering industry was undertaken in 2012 to investigate the existence of the relationship between EO and FP. EO is measured using the Hughes&Morgan (2007) EO scale which incorporated the five dimensions of Lumpkin&Dess (1996). The Hughes&Morgan (2007) EO scale is used to study the independent effects of these multi-dimensions on FP. A Chi-square test is used to test the significance independence of the relationship between the multi-dimensions of EO and FP. This cross-section study finds out that there is convincingly a moderate to strong relationship between EO and FP.