The IUP Journal of Entrepreneurship Development
Moderating Effect of Environmental Uncertainties on Entrepreneurial Orientation and Business Performance Relationship in SMEs in Kurunegala District, Sri Lanka
Article Details
| Pub. Date | : December, 2020 |
|---|---|
| Product Name | : The IUP Journal of Entrepreneurship Development |
| Product Type | : Article |
| Product Code | : IJED21220 |
| Author Name | : P Venkateswarlu, Deepal N Perera and Vivek Ranga |
| Availability | : YES |
| Subject/Domain | : Management Journals |
| Download Format | : PDF Format |
| No. of Pages | : 16 |
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Abstract
The purpose of this study is to investigate the moderating effect of Environmental Uncertainties (EU) on the relationship between risk-taking propensity and Business Performance (BP). The study was conducted on 275 Small and Medium Enterprises (SMEs) in Kurunegala district, Sri Lanka. Significant positive relationship was found between Entrepreneurial Orientation (EO) and BP. Regression analysis showed that the relationship between entrepreneurial dimensions and BP is not moderated by the EU. The EU was categorized into stable and dynamic environments. 173 SMEs were found to be in the dynamic environment where they are adaptable to changes in business environment and also technological changes.
Introduction
In the era of globalization, with the advent of technology, competitive and explosive growth,
the world has become a global village. Organizations and industries are facing challenges
throughout the world to be part of the global economy. In order to survive, one has to keep
pace with the swift advancements in technology; to lead is very hard on the one hand and
at the same time, it opens up opportunities which were never explored. Entrepreneurship is
one of the powerful factors for the economic development of the countries, which has become
a symbol of business tenacity.
Entrepreneurship perhaps is one term that invariably features high when it comes to the
socioeconomic agenda of any country. The whole idea of entrepreneurship is fundamentally
driven by individual's business astuteness essentially coupled with risk-taking propensity.
Keywords
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