Entrepreneurial orientation and performance of small-and medium-sized hotels in Gauteng, South Africa
Date
2021
Authors
Sekoere, Maloela
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Abstract
Entrepreneurial orientation has been widely touted as an essential element for augmenting firm performance. The main purpose of the current research study, consequently, was to ascertain the influence of entrepreneurial orientation with its dimensional variables – innovativeness, risk-taking and proactiveness on the performance of small-and medium-sized hotels in Gauteng, South Africa. To measure performance, both financial and nonfinancial criteria was then utilised. Furthermore, the external environment, in terms of (a) dynamism, (b) hostility and (c) turbulence, were used as a contingent to exert the outcome of a moderating influence on the entrepreneurial orientation and performance relationship. The study adopted a quantitative and positivist research approach. A cross-sectional method was used to gather the data by means of a questionnaire. Altogether, 309 questionnaires were disseminated to the owners and managers of small-and medium-sized hotels, both online and manually distributing the questionnaires concerned through visits to the respondents in question. Only 128 respondents participated in the survey. Cronbach’s alpha was then employed as the appropriate measure for reliability. The entrepreneurial orientation dimensions diverged into two, instead of into three, dimensions. Therefore, the results indicated a significant and positive association between risk-taking and proactiveness in relation to performance. Of the two dimensions, proactiveness was found to be a more predictive dimension than was risk-taking in the variance explained. The hypothesis pertaining to the moderating influence of external environmental factors on performance was rejected. Based on the findings made in the current study, the hotel owners and managers surveyed should be able to drive a culture of risk-taking and proactiveness to drive the performance for their establishments to be able to survive. Ultimately, the present study’s contribution could be wide-ranging in providing evidence from an African emerging context that has received minimal attention to date
Description
A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management (in Entrepreneurship and New Venture Creation), 2021
Keywords
Risk-taking, Innovativeness, Proactiveness, Environmental contingency, South Africa