The impact of entrepreneurial orientation on the financial performance of a South African engineering firm.
Mahlangu, Joseph Tebogo
The purpose of this research was to assess the impact of the dimensions of entrepreneurial orientation on the financial performance of a South African engineering firm. A literature study was conducted in the field of corporate entrepreneurship. The term ‘entrepreneurial orientation’ consisting of three constructs; namely innovativeness, proactiveness and risk-taking was defined. Financial controls used to measure performance of the company are sales growth, return on investment, return of equity, return on assets and gross profit. The results obtained from the questionnaire, in conjunction with the literature review, were used to draw up the conclusion and make recommendations. A questionnaire was administered to employees in a company called ABC Electrical that was perceived as a market leader in the electrical construction industry in South Africa. The study concluded that there is a significant relationship between entrepreneurial orientation and selected financial performance variables. The findings support that entrepreneurial orientation is an integral component for business performance in attaining sustainable competitive advantage and achieving success.
Entrepreneurship -- South Africa,Business enterprises -- South Africa -- Finance,Strategic planning -- South Africa.