Entrepreneurial orientation and value sustenance of a South African firm during the Covid-19 pandemic

Abstract

This study's overall theoretical issues related to the dimensions of entrepreneurial orientation adopted by organisations to survive the COVID-19 pandemic economically. As the world was economically thrown into upheaval and crisis, many organisations faced bankruptcy and stopped trading. The motivation of this study was to understand measures adopted by organisations by applying the dimensions of entrepreneurial orientation to survive the COVID-19 crisis and whether it proved fruitful. The purpose of this study was to determine whether the dimensions of entrepreneurial orientation (EO) that relate to innovation, proactiveness, risk-taking and autonomy had impacted and helped sustain firm value, measured through business financial performance, business retention, and moderated by financial reprieve received, during the COVID-19 pandemic.

The study was conducted in an emerging market context and focused on organisations operating within a South African context. The focus was placed on those industries that were negatively impacted by the crisis. In an organisational setting, a quantitative empirical study was conducted based on responses of 133 participants. Service, retail, and manufacturing enterprises were included in the sample, of which the retail and manufacturing enterprises housed dedicated IT departments. Through electronically distributed questionnaires, their organisational employees were invited to participate in the study. Regression analysis was used to support the hypotheses and literature read using the SPSS v27 tool. It was established that 72% of the responses were received from the manufacturing sector, 20% from the service sector, 5% from the IT sector, and 3% from the retail sector. The main results and findings of the study are summarised below