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Multi-Criteria Decision Analysis of Entrepreneurial Orientation and Business Performance in Nigeria

Author

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  • Adebiyi Sulaimon Olanrewaju

    (University of Lagos, Akoka, Nigeria)

  • Amole Bilqis Bolanle

    (University of Lagos, Akoka, Nigeria)

  • Arikewuyo Kareem Abidemi

    (Kwara State University, Molete, Nigeria)

  • Oyenuga Olamilekan Gbenga

    (University of Lagos, Akoka, Nigeria)

Abstract

This study advances research on entrepreneurial orientation and business performance by assessing, prioritizing, ranking, and evaluating decision choices among entrepreneurial orientation attributes that influence small and medium scale enterprise performance in Nigeria. Data were gathered through the multi-criteria decision-making (MCDM) tool called analytic hierarchy process (AHP) based questionnaire administered to practicing entrepreneurs in Lagos State, Nigeria. The population of the study consists of all the firms (mainly small and medium scale businesses) registered by Lagos Chamber of Commerce, totalling 1766 at the time of this study. The sample size was calculated through Yamane formula, while entrepreneurs managing the sampled firms were the respondents carefully selected for the study through a random sampling procedure. Data collected were analysed through descriptive statistics and analytic hierarchy process procedures for eliciting the consistency ratio, consistency index, Lambda Max, local and global priority values for an effective policy decision. The priorities were established in line with the AHP framework using pairwise comparisons and judgment of entrepreneurs. The results revealed the preference of entrepreneurial orientation dimension that influenced business performance most based on pairwise experiences and trade-off of different attributes. This study explores the application of AHP methodology for measuring complex entrepreneurial decision-making process for enhancing business performance. Thus, the AHP revealed a potential research method in computing weights and chasing MCDM process.

Suggested Citation

  • Adebiyi Sulaimon Olanrewaju & Amole Bilqis Bolanle & Arikewuyo Kareem Abidemi & Oyenuga Olamilekan Gbenga, 2019. "Multi-Criteria Decision Analysis of Entrepreneurial Orientation and Business Performance in Nigeria," Economics and Business, Sciendo, vol. 33(1), pages 140-151, January.
    • Handle: RePEc:vrs:ecobus:v:33:y:2019:i:1:p:140-151:n:10
    DOI: 10.2478/eb-2019-0010
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    References listed on IDEAS

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    1. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
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    More about this item

    Keywords

    Analytic Hierarchy Process; Business performance; Entrepreneur; Entrepreneurial orientation; MCDM;
    All these keywords.

    JEL classification:

    • B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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