IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v7y2017i1d10.1186_s40497-017-0086-y.html
   My bibliography  Save this article

Beyond the EJ model: entrepreneurial orientation and industry choice of Ghanaian entrepreneurs

Author

Listed:
  • George Acheampong

    (University of Ghana Business School)

Abstract

This paper seeks to understand an entrepreneur’s decision to either the services or manufacturing sectors of the Ghanaian economy. This objective is significant because it provides an extension of current stream of literature, specifically, the Evans and Jovanovic (EJ) Model which focuses largely on an entrepreneur’s decision to start a business. The study seeks to understand the industry choice of an entrepreneur by adopting the entrepreneurial orientation concept as its theoretical base. Data for the study is collected from entrepreneurs in Accra, Ghana and analysed by means of structural equation modelling precededwhich is by a confirmatory factor analysis of the entrepreneurial orientation (EO) scale. The estimation results indicate that, entrepreneurs with high risk-taking thresholds are more likely to enter into the manufacturing sector while innovative individuals are more likely to enter into the services sector. Proactiveness is not seen to be significant. The results show that an entrepreneur’s personal characteristics influence the choice of industry he or she will participate in.

Suggested Citation

  • George Acheampong, 2017. "Beyond the EJ model: entrepreneurial orientation and industry choice of Ghanaian entrepreneurs," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-10, December.
    • Handle: RePEc:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0086-y
    DOI: 10.1186/s40497-017-0086-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40497-017-0086-y
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40497-017-0086-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nobuyuki Harada & Kyoichi Kijima, 2005. "Consumption-Leisure Preference Structure: A New Explanation of the Evans-Jovanovic Results for Entrepreneurial Choice," Small Business Economics, Springer, vol. 24(2), pages 187-191, March.
    2. William M. Gentry & R. Glenn Hubbard, 2000. "Entrepreneurship and Household Saving," NBER Working Papers 7894, National Bureau of Economic Research, Inc.
    3. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    4. Danny Miller & Peter H. Friesen, 1978. "Archetypes of Strategy Formulation," Management Science, INFORMS, vol. 24(9), pages 921-933, May.
    5. Edward L. Glaeser & William R. Kerr, 2009. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 623-663, September.
    6. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    7. Xu, Bin, 1998. "A reestimation of the Evans-Jovanovic entrepreneurial choice model," Economics Letters, Elsevier, vol. 58(1), pages 91-95, January.
    8. Javalgi, Rajshekhar (Raj) G. & Todd, Patricia R., 2011. "Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India," Journal of Business Research, Elsevier, vol. 64(9), pages 1004-1010, September.
    9. Cassar, Gavin, 2014. "Industry and startup experience on entrepreneur forecast performance in new firms," Journal of Business Venturing, Elsevier, vol. 29(1), pages 137-151.
    10. repec:bla:obuest:v:62:y:2000:i:5:p:565-87 is not listed on IDEAS
    11. Veland Ramadani & Léo-Paul Dana & Vanessa Ratten & Sadush Tahiri, 2015. "The context of Islamic entrepreneurship and business: concept, principles and perspectives," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 15(3), pages 244-261.
    12. Andreea N. Kiss & Pamela S. Barr, 2015. "New venture strategic adaptation: The interplay of belief structures and industry context," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1245-1263, August.
    13. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    14. Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
    15. Nobuyuki Harada & Kyoichi Kijima, 2005. "Consumption-Leisure Preference Structure: A New Explanation of the Evans-Jovanovic Results for Entrepreneurial Choice," Small Business Economics, Springer, vol. 24(4), pages 423-427, May.
    16. Frank M. Fossen, 2012. "Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1795-1812, May.
    17. Veland Ramadani & Robert D. Hisrich & Shqipe Gërguri-Rashiti, 2015. "Female entrepreneurs in transition economies: insights from Albania, Macedonia and Kosovo," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 11(4), pages 391-413.
    18. Andrew E. Burke & Felix R. FitzRoy & Michael A. Nolan, 2000. "When Less is More: Distinguishing Between Entrepreneurial Choice and Performance," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(5), pages 565-587, December.
    19. Bo Bernhard Nielsen & Sabina Nielsen, 2009. "Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 1031-1056, September.
    20. Jeffrey G. Covin & Dennis P. Slevin, 1988. "The Influence Of Organization Structure On The Utility Of An Entrepreneurial Top Management Style," Journal of Management Studies, Wiley Blackwell, vol. 25(3), pages 217-234, May.
    21. Palich, Leslie E. & Ray Bagby, D., 1995. "Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom," Journal of Business Venturing, Elsevier, vol. 10(6), pages 425-438, November.
    22. Bengt Muthén, 1984. "A general structural equation model with dichotomous, ordered categorical, and continuous latent variable indicators," Psychometrika, Springer;The Psychometric Society, vol. 49(1), pages 115-132, March.
    23. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    24. George Acheampong & Mark Esposito, 2014. "The nature of entrepreneurship in bottom of the pyramid markets," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 21(4), pages 437-456.
    25. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deusdedit Rwehumbiza & Marin A. Marinov, 0. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    2. Deusdedit Rwehumbiza & Marin A. Marinov, 2020. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 667-689, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    2. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    3. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    4. Rodney C. Runyan & Baoshan Ge & Baobao Dong & Jane L. Swinney, 2012. "Entrepreneurial Orientation in Cross–Cultural Research: Assessing Measurement Invariance in the Construct," Entrepreneurship Theory and Practice, , vol. 36(4), pages 819-836, July.
    5. Teresa Felgueira & Ricardo Gouveia Rodrigues, 2020. "I-ENTRE-U: an individual entrepreneurial orientation scale for teachers and researchers in higher education institutions," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 17(1), pages 1-21, March.
    6. Sari Pekkala Kerr & William R. Kerr & Tina Xu, 2017. "Personality Traits of Entrepreneurs: A Review of Recent Literature," NBER Working Papers 24097, National Bureau of Economic Research, Inc.
    7. Kameliia Petrova, 2012. "Part-time entrepreneurship and financial constraints: evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 39(2), pages 473-493, September.
    8. Carla D. Jones & Phillip M. Jolly & Connor J. Lubojacky & Geoffrey P. Martin & Luis R. Gomez-Mejia, 2019. "Behavioral agency and corporate entrepreneurship: CEO equity incentives & competitive behavior," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 1017-1039, September.
    9. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    10. Madison, Kristen & Runyan, Rodney C. & Swinney, Jane L., 2014. "Strategic posture and performance: Revealing differences between family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 239-251.
    11. Jaroslav Belas & Jan Dvorsky & Ludmila Kozubikova & Martin Cepel, 2019. "Important Factors of SMEs Entrepreneurial Orientation," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 165-179.
    12. Daniella Teles Amaral & Cecile Nieuwenhuizen & Chris Schachtebeck, 2024. "Assessing the influence of entrepreneurial education on individual entrepreneurial orientation of university students," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-25, December.
    13. Engelen, Andreas, 2010. "Entrepreneurial orientation as a function of national cultural variations in two countries," Journal of International Management, Elsevier, vol. 16(4), pages 354-368, December.
    14. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    15. Zhe Zhang & Xin Wang & Ming Jia, 2021. "Echoes of CEO Entrepreneurial Orientation: How and When CEO Entrepreneurial Orientation Influences Dual CSR Activities," Journal of Business Ethics, Springer, vol. 169(4), pages 609-629, April.
    16. Thomas Zellweger & Philipp Sieger, 2012. "Entrepreneurial orientation in long-lived family firms," Small Business Economics, Springer, vol. 38(1), pages 67-84, January.
    17. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    18. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    19. Shan, Peng & Song, Michael & Ju, Xiaofeng, 2016. "Entrepreneurial orientation and performance: Is innovation speed a missing link?," Journal of Business Research, Elsevier, vol. 69(2), pages 683-690.
    20. Tobias Karmann & René Mauer & Tessa C. Flatten & Malte Brettel, 2016. "Entrepreneurial Orientation and Corruption," Journal of Business Ethics, Springer, vol. 133(2), pages 223-234, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:7:y:2017:i:1:d:10.1186_s40497-017-0086-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.