Entrepreneurial orientation and entrepreneurial performance of central Johannesburg informal sector street traders
Date
2010-04-13T06:31:28Z
Authors
Callaghan, Christian William
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Abstract
Informal sector participation has been described as a trap associated with
impoverishment (Cassim, 1982); as the survivalist responses of marginalised persons
with no alternatives (Habib, 2005); yet it has also been described as potentially
dynamic (House, 1984). The former conceptions prescribe an identity to informal
sector participants, with little consideration given to individual potential and
individual action as means to escape impoverishment and a survivalist condition.
An entrepreneurial orientation is associated with increased earnings in certain
environments according to Lumpkin and Dess (1996), a process orientation that can
be learned. Research testing the relationship between entrepreneurship and
performance has been problematic due to the different definitions offered by different
entrepreneurship scholars (Cunningham and Lischeron, 1991; Lumpkin and Dess,
1996). In this context, entrepreneurial orientation as a construct was utilised to
overcome these challenges. Entrepreneurial orientation or certain of its dimensions
have been associated with positive effects related to performance (Chow, 2006;
Coulthard, 2007; De Clerq and Ruis, 2007; Jantunen, Puumalainen, Saarenketo, and
Kylaheiko, 2005) or with negative relationships (Naldi, Nordqvist, Sjőberg and
Wiklund, 2007).
Innovativeness, competitive aggressiveness, risk taking propensity, autonomy and
proactiveness, the dimensions of an entrepreneurial orientation (Lumpkin and Dess,
1996), and the effects of certain contextual factors were tested as to their associations
with entrepreneurial performance. Entrepreneurial performance was defined in this
context as a construct comprising earnings and continuance satisfaction. In terms of
entrepreneurial performance, the contention of Lumpkin and Dess (1996) that an
entrepreneurial orientation is associated with learning: the how of entrepreneurship, or
the learnable process conception of Stevenson and Jarillo (1990), was also tested by
investigating contextual factors and how they shaped an entrepreneurial orientation
and contributed to entrepreneurial performance.
ii
In this context a quantitative investigation of informal sector street traders and
providers of street-side services was undertaken using a survey format. The specific
relationships influencing entrepreneurial orientation and entrepreneurial performance
were investigated. Results contested assumptions that prescribed a theoretically
permanent and immutable survivalist orientation to certain informal participants in
that education and learning related factors were found to be associated with
entrepreneurial orientation and increased earnings. Entrepreneurial orientation was
found to be associated with increased earnings along the dimension of risk taking
propensity, and higher levels of autonomy were found to be associated with
continuance satisfaction. The relationships between entrepreneurial and contextual
factors were investigated and insights developed regarding potential street trader
upliftment.
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Keywords
Entrepreneurship, South Africa, Johannesburg, Street traders, Informal sector