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Entrepreneurial orientation and performance of large manufacturing firms: the role of strategic capabilities and environmental dynamism

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  • Henock Semaw Melesse

Abstract

This paper investigates the mediating effect of marketing capabilities and the moderating effect of management capabilities and environmental dynamism on the relationship between entrepreneurial orientation and the performance of large manufacturing firms in emerging economies, focusing on Ethiopia. It aims at addressing the necessity to ensure the capabilities of emerging market firms are able to bridge the inherent gaps of translating strategic orientation into superior performance. A total of 205 sample large manufacturing firms covering four geopolitical regions of Ethiopia were surveyed. Covariance-based structural equation modelling with the aid of AMOS was employed to test the hypotheses. The study found that entrepreneurial orientation exhibited a significant effect on large manufacturing firms' performance. The findings also confirmed that marketing capabilities significantly mediate the entrepreneurial orientation-performance relationship. Management capabilities and environmental dynamism, however, failed to confirm the hypothesised significant effect on performance. The present study validates prior findings and contributes additional evidence by suggesting the complementarity of strategic orientations and strategic capabilities in achieving superior performance in the context of developing economies.

Suggested Citation

  • Henock Semaw Melesse, 2024. "Entrepreneurial orientation and performance of large manufacturing firms: the role of strategic capabilities and environmental dynamism," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 23(3), pages 199-219.
    • Handle: RePEc:ids:ijmede:v:23:y:2024:i:3:p:199-219
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