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Personality traits and firm performance: the mediating effect of competitive advantage

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  • Jeen Wei Ong
  • Hishamuddin Bin Ismail

Abstract

Despites the popularity of personality traits in entrepreneurship study, previous studies have failed to find a conclusive relationship between personality traits and firm performance. This study aims to examine the mediating effect of competitive advantage on the linkage between personality traits and firm performance with the intention to revive the role of personality traits in predicting firms' success. The data is collected through questionnaire and analysed using multi-stage regression analysis. The results show that the firm competitive advantage is the significant mediator to the linkage between personality traits and firm performance and differentiation advantage has stronger mediating effect compared to lower cost. Based on the findings, the SME owner-managers are advised to capitalise on their entrepreneurial personality traits to build differentiation for their firms. The policy makers should assist the SME owner-managers to strengthen their personality traits.

Suggested Citation

  • Jeen Wei Ong & Hishamuddin Bin Ismail, 2013. "Personality traits and firm performance: the mediating effect of competitive advantage," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 19(3), pages 362-378.
    • Handle: RePEc:ids:ijesbu:v:19:y:2013:i:3:p:362-378
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    Cited by:

    1. Sharon Yong Yee Ong & Nurul Fadly Habidin & Mad Ithnin Salleh & Nursyazwani Mohd Fuzi, 2016. "Relationship of Entrepreneurship Practice and Business Performance of Women Entrepreneur in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 95-109, November.
    2. Harmon Chaniago, 2020. "The Effects of Entrepreneurial Personality to Competitiveness and Corporate Image: A Study on Chocolate Agent Entrepreneurs," International Review of Management and Marketing, Econjournals, vol. 10(2), pages 21-29.
    3. Huong Trang Kim & Quang Nguyen, 2024. "Linking top managers’ behavioural traits with business practices and firm performance," Review of Managerial Science, Springer, vol. 18(11), pages 3253-3296, November.

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