Entrepreneurial orientation and performance analysis at the private healthcare sector: The impact of limitation of resources

Elena Gjorevska

doi:10.36096/ijbes.v5i3.416

Authors

Elena Gjorevska Ph.D., EDBA, University American College Skopje, North Macedonia https://orcid.org/0009-0004-4447-7211

DOI:

https://doi.org/10.36096/ijbes.v5i3.416

Keywords:

SMEs, Entrepreneurial orientation, Performance Analysis, Healthcare Sector.

Abstract

The unavailability of resources has often been stated as one of the main limitations for SMEs’ growth in developing countries. The aim of this study is to address how the position of limited resources impacts the relationship between the entrepreneurial orientation of SMEs in developing countries and their business performances. For this purpose, a conceptual framework has been created, delivering six theoretical propositions aiming to test the impact of limited resources on SMEs’ courage for exploring new opportunities and taking risks, promoting innovation, act proactively on the market, and set autonomy and competitive aggressiveness as standards in their operations. Derived propositions have been elaborated by applying a multiple-case research strategy. Six companies from the private healthcare sector in North Macedonia have participated in the research and contributed to the same with a valuable set of data. Study results have indicated relatively low threats from the limited resources to the entrepreneurial orientation dimensions and the business's success correspondingly. Businesses have mainly been financed through their own resources and bank loans, and in some cases through grants as a result of collaboration with innovative and other SMEs supporting funds. Nevertheless, despite the unenthusiastic level of available resources, entrepreneurs have shown courage to take risks, initiate innovation and act proactively in the private healthcare market.

Downloads

Download data is not yet available.

References

Abdulkarim Kanaan-Jebna, Ahamd Suhaimi Baharudi, & Tariq Tawfeeq Yousif Alabdullah. (2021). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1-14. https://doi.org/10.21070/jas.v6i1.1590 DOI: https://doi.org/10.21070/jas.v6i1.1590

Akhtar, Umair Aftab & Julienti, Lily & Muhammad, Riaz & ud Din, Israr. (2022). Bibliometric Analysis of Entrepreneurial Orientation, For Years (2017-2021). International Journal of Management (IJM), 13(3),139-169. https://doi.org/10.34218/IJM.13.3.2022.013

Anderson, B. S., Kreiser, P. M., Kuratko, D. F., Hornsby, J. S., & Eshima, Y. (2015). Reconceptualizing entrepreneurial orientation. Strategic Management Journal, 36(10), 1579-1596. https://doi.org/10.1002/smj.2298 DOI: https://doi.org/10.1002/smj.2298

Audretsch, D. B., Santarelli, E., & Vivarelli, M. (1999). Start-up size and industrial dynamics: Some evidence from Italian manufacturing. International Journal of Industrial Organization, 17(7), 965-983. https://doi.org/10.1016/S0167-7187(98)00002-2 DOI: https://doi.org/10.1016/S0167-7187(98)00002-2

Baird, I. S., & Thomas, H. (1985). Toward a contingency model of strategic risk taking. Academy of Management Review, 10(2), 230-243. https://doi.org/10.2307/257965 DOI: https://doi.org/10.5465/amr.1985.4278108

Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, Vol. 17, pp.99–120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108

Bartlett, W., & Bukvi?, V. (2001). Barriers to SME growth in Slovenia. MOST: Economic Policy in Transitional Economies, 11(2), 177-195. https://doi.org/10.1023/A:1012206414785 DOI: https://doi.org/10.1023/A:1012206414785

Bhide, A. (2000). The Origin and Evolution of New Business. New York: Oxford University Press.

Buttner, E. H., & Moore, D. P. (1997). Women's Organizational Exodus to Entrepreneurship: Self-Reported Motivations and Correlates with Success. Journal of Small Business Management, 35(1), 34-46.

Cantillon, R. (1755). Essai sur la Nature du Commerce en Général. London: Frank Gas and Company Ltd.

Casillas, J. C., & Moreno, A. M. (2010). The relationship between entrepreneurial orientation and growth: The moderating role of family involvement. Entrepreneurship & Regional Development, 22(3-4), 265-291. https://doi.org/10.1080/08985621003726135 DOI: https://doi.org/10.1080/08985621003726135

Chandler, G. N., & Hanks, S. H. (1994). Market attractiveness, resource-based capabilities, venture strategies, and venture performance. Journal of Business Venturing, 9(4), 331-349. https://doi.org/10.1016/0883-9026(94)90011-6 DOI: https://doi.org/10.1016/0883-9026(94)90011-6

Cooper, C. A. (1980). Policy interventions in technological innovations in developing countries. World Bank Staff Working Paper, No. 4-41. Washington, D.C.

Covin, J. G., & Miles, M. P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23(3), 47-63. https://doi.org/10.1177/104225879902300304 DOI: https://doi.org/10.1177/104225879902300304

Covin, J. G., & Wales, W. J. (2012). The measurement of entrepreneurial orientation. Entrepreneurship: Theory & Practice, 36(4), 677-702. https://doi.org/10.1111/j.1540-6520.2010.00432.x DOI: https://doi.org/10.1111/j.1540-6520.2010.00432.x

Damanpour, F. (1987). The adoption of technological, administrative, and ancillary innovations: Impact of organizational factors. Journal of Management, 13(4), 675-688. https://doi.org/10.1177/014920638701300408 DOI: https://doi.org/10.1177/014920638701300408

Damanpour, F. (1996). Organizational complexity and innovation: developing and testing multiple contingency models. Management Science, 42, 693-716. https://doi.org/10.1287/mnsc.42.5.693 DOI: https://doi.org/10.1287/mnsc.42.5.693

Ferreras-M´endez, J. L., Llopis, O., & Alegre, J. (2022). Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity. Industrial Marketing Management, 102, 240–251. https://doi.org/10.1016/j.indmarman.2022.01.015 DOI: https://doi.org/10.1016/j.indmarman.2022.01.015

Ferrier, W. J. (2001). Navigating the competitive landscape: The drivers and consequences of competitive aggressiveness. Academy of Management Journal, 44(4), 858-877. https://doi.org/10.2307/3069419 DOI: https://doi.org/10.5465/3069419

Grande, J., Madsen, E. L., & Borch, O. J. (2011). The relationship between resources, entrepreneurial orientation, and performance in farm-based ventures. Entrepreneurship and Regional Development, 23(3-4), 89-111. https://doi.org/10.1080/08985620903183710 DOI: https://doi.org/10.1080/08985620903183710

Gürbüz, G., & Aykol, S. (2009). Entrepreneurial management, entrepreneurial orientation, and Turkish small firm growth. Management Research News, 32(4), 321-336. https://doi.org/10.1108/01409170910944281 DOI: https://doi.org/10.1108/01409170910944281

Hadi, P. (2023). Effect of product innovation on SME’s performance: The moderating role of organizational learning and market orientation. International Journal of Business Ecosystem & Strategy (2687-2293), 5(2), 47–54. https://doi.org/10.36096/ijbes.v5i2.405 DOI: https://doi.org/10.36096/ijbes.v5i2.405

Huang, S. K., & Wang, Y. L. (2011). Entrepreneurial orientation, learning orientation, and innovation in small and medium enterprises. Procedia - Social and Behavioral Sciences, 24, 563-570. https://doi.org/10.1016/j.sbspro.2011.09.004 DOI: https://doi.org/10.1016/j.sbspro.2011.09.004

Huang, S., Huang, Q., & Soetanto, D. (2022). Entrepreneurial orientation dimensions and the performance of high-tech and low-tech firms: A configurational approach. European Management Journal. https://doi.org/10.1016/j.emj.2022.03.002 DOI: https://doi.org/10.1016/j.emj.2022.03.002

Johnson, P. S. (2005). Targeting Firm Births and Economic Regeneration in a Lagging Region. Small Business Economics, 24(5), 451-464. https://doi.org/10.1007/s11187-005-6454-y DOI: https://doi.org/10.1007/s11187-005-6454-y

Kraaijenbrink, J., Spender, J. C., & Groen, A. (2010). The resource-based view: A review and assessment of its critiques. Munich Personal RePEc Archive, 21442, Munich. https://doi.org/10.1177/0149206309350775 DOI: https://doi.org/10.1177/0149206309350775

Kreiser, P. M., Marino, L. D., & Weaver, K. M. (2002). Assessing the psychometric properties of the entrepreneurial orientation scale: A multi-country analysis. Entrepreneurship Theory and Practice, 26(4), 71-93. https://doi.org/10.1177/104225870202600405 DOI: https://doi.org/10.1177/104225870202600405

Kusi, A., Opata, C. N., & Narh, T. W. J. (2015). Exploring the factors that hinder the growth and survival of small businesses in Ghana (a case study of small businesses within Kumasi metropolitan area). American Journal of Industrial and Business Management, 5(11), 705-723. https://doi.org/10.4236/ajibm.2015.511070 DOI: https://doi.org/10.4236/ajibm.2015.511070

Lee, L. T. S., & Sukoco, B. M. (2007). The effects of entrepreneurial orientation and knowledge management capability on organizational effectiveness in Taiwan: The moderating role of social capital. International Journal of Management, 24(3), 549.

Li, H., & Atuagene-Gima, K. (2001). Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6), 1123-1134. https://doi.org/10.2307/3069392 DOI: https://doi.org/10.5465/3069392

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. https://doi.org/10.2307/258632 DOI: https://doi.org/10.5465/amr.1996.9602161568

Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451. https://doi.org/10.1016/S0883-9026(00)00048-3 DOI: https://doi.org/10.1016/S0883-9026(00)00048-3

MacMillan, I. C., & Day, D. L. (1987). Corporate ventures into industrial markets: Dynamics of aggressive entry. Journal of Business Venturing, 2(1), 29-39. https://doi.org/10.1016/0883-9026(87)90017-6 DOI: https://doi.org/10.1016/0883-9026(87)90017-6

March, J. G. (1991). Exploration and exploitation in organizational learning. Organizational Science, 2, 71-87. https://doi.org/10.1287/orsc.2.1.71 DOI: https://doi.org/10.1287/orsc.2.1.71

Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791. https://doi.org/10.1287/mnsc.29.7.770 DOI: https://doi.org/10.1287/mnsc.29.7.770

Miller, D., & Friesen, P. H. (1978). Archetypes of strategy formulation. Management Science, 24(9), 921-933. https://doi.org/10.1287/mnsc.24.9.921 DOI: https://doi.org/10.1287/mnsc.24.9.921

Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: An assessment and suggestions for future research. Strategic Management Journal, 28, 121-146. https://doi.org/10.1002/smj.573 DOI: https://doi.org/10.1002/smj.573

Nord, W.R. and Tucker, S. (1987). Implementing Routine and Radical Innovations, Lexington Books, Lexington, MA.

Prahalad, C. K., & Hamel, G. (2006). The core competence of the corporation. In Strategische unternehmungsplanung—strategische unternehmungsführung (pp. 275-292). Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-30763-X_14 DOI: https://doi.org/10.1007/3-540-30763-X_14

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761-787. https://doi.org/10.1111/j.1540-6520.2009.00308.x DOI: https://doi.org/10.1111/j.1540-6520.2009.00308.x

Schumpeter, J. A. (1942). Capitalism, socialism and democracy. New York: Harper.

Soares, M., & Perin, M. (2020). Entrepreneurial orientation and firm performance: an updated meta-analysis. RAUSP Management Journal, 55(2), 143-159. https://doi.org/10.1108/RAUSP-01-2019-0014 DOI: https://doi.org/10.1108/RAUSP-01-2019-0014

Stinchcombe, A. L. (1965). Social structures and organizations. In J. G. March (Ed.), Handbook of organizations (pp. 142-193). Chicago, IL: Rand McNally.

Todorovic, Z.W., & McNaughton, R.B. (2007). The effect of culture, resources, and quality of entrepreneurship on economic development: a conceptual framework. International Journal of Entrepreneurship and Small Business, 4(4), 383-396. https://doi.org/10.1504/IJESB.2007.013686 DOI: https://doi.org/10.1504/IJESB.2007.013686

Verbano, C., Crema, M., and Scuotto, V. (2020). Adding the entrepreneurial orientation among the theoretical perspectives to analyse the development of research-based spin-offs. The International Journal of Entrepreneurship and Innovation, 21(2), 113–126. https://doi.org/10.1177/1465750319874592 DOI: https://doi.org/10.1177/1465750319874592

Wales, W., Monsen, E., & McKelvie, A. (2011). The organizational pervasiveness of entrepreneurial orientation. Entrepreneurship Theory and Practice, 35(5), 895-923. https://doi.org/10.1111/j.1540-6520.2011.00451.x DOI: https://doi.org/10.1111/j.1540-6520.2011.00451.x

Wang, C.L. (2008). Entrepreneurial orientation, learning orientation, and firm performance. Entrepreneurship theory and practice, 32(4), 635-657. https://doi.org/10.1111/j.1540-6520.2008.00246.x DOI: https://doi.org/10.1111/j.1540-6520.2008.00246.x

Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207 DOI: https://doi.org/10.1002/smj.4250050207

Wiklund, J., Davidsson, P., & Delmar, F. (2003). What do they think and feel about growth? An expectancy-value approach to small business managers' attitudes toward growth. Entrepreneurship Theory & Practice, 27(3), 247-270. https://doi.org/10.1111/1540-8520.t01-1-00003 DOI: https://doi.org/10.1111/1540-8520.t01-1-00003