Entrepreneurial orientation of SMEs’ executives in the comparative perspective for Czechia and Turkey

Keywords: entrepreneurial orientation, Czech SMEs, Turkish SMEs, age, gender and educational status of SMEs’ executives

Abstract

Research background: The executives of SMEs that have higher innovativeness, risk taking, proactiveness, competitive aggressiveness and autonomy dynamize the strategic posture of SMEs, thus, those firms can reach better financial and economic conditions. However, existence of many differences among countries, such as cultural values and market conditions, can cause variations in EO of these executives. Therefore, this fact can be one of the reasons why the performance and financial power of SMEs differ in various countries. 

Purpose of the article: This study aspires to find out the differences in entrepreneurial orientation (EO) of younger and older, female and male, and more and less educated executives of SMEs from various countries.

Methods: 1141 Czech and 479 Turkish executives were analyzed separately by the Mann-Whitney U test, to find out the differences in EO. The researcher ran the analyzes by SPSS Statistical Software.

Findings & Value added: The results indicate that risk-taking and competitive aggressiveness of the executives differ regarding their gender, while innovativeness, proactiveness and autonomy do not. While there are significant differences between proactiveness, autonomy and innovativeness of older and younger executives, no differences exist in risk-taking and competitive aggressiveness. Regarding educational status, more educated executives perform better in innovativeness, proactiveness and autonomy, while less educated executives have higher propensities in risk taking and competitive aggressiveness. Masculinity, fear of failure, perception of obstacles, motivation of SMEs’ executives and location of businesses might be the reasons of these results. By including the survey respondents from different countries and all dimensions of EO into the analyses, this study finds similarities and differences in gender, age and education levels and of SMEs’ executives and their EO. This research also suggests some policies for governments and institutions to close the gap between EO of the executives. These facts not only make this research to unique, but also constitute a valuable addition to the literature.

Downloads

Download data is not yet available.

References

Altinay, L., & Wang, C. (2011). The influence of an entrepreneur’s socio-cultural characteristics on the entrepreneurial orientation of small firms. Journal of Small Business and Enterprise Development, 18(4). doi: 10.1108/146260011 11179749.

Ayub, A., Razzaq, A., Aslam, M. S., & Iftekhar, H. (2013). Gender effects on entrepreneurial orientation and value innovation: evidence from Pakistan. European Journal of Business and Social Sciences, 2(1).

Berrone, P., Gertel, H., Giuliodori, R., Bernard, L., & Meiners, E. (2014). Determinants of performance in microenterprises: preliminary evidence from Argentina. Journal of Small Business Management, 52(3). doi: 10.1111/jsbm.12045.

Bonte, W., Falck, O., & Heblich, H., (2007). Demography and innovative entrepreneurship. Jena Economic Research Papers, 84. Retrieved from https://www.researchgate.net/publication/5142617_Demography_and_Innovative_Entrepreneurship (18.05.2019).

Boyer, T., & Blazy, R. (2014). Born to be alive? The survival of innovative and non-innovative french micro-start-ups. Small Business Economics, 42(4). doi: 10.1007/s11187-013-9522-8.

Brescoll, V. L., Uhlmann, E. L., & Moss-Racusin, C. (2012). Masculinity, status, and subordination: why working for a gender stereotype violator causes men to lose status. Journal of Experimental Social Psychology, 48(1). doi: 10.1016/j. jesp.2011.06.005.

Brunow, S., & Hirte, G. (2006). Age structure and regional economic growth. Review of Regional Research, 26. doi: 10.1007/s10037-005-0075-4.

Carter, S., Shaw, E., Lam, W., & Wilson, F. (2007). Gender, entrepreneurship, and bank lending: the criteria and processes used by bank loan officers in assessing applications. Entrepreneurship Theory and Practice, 31(3). doi: 10.1111/j.1540 -6520.2007.00181.x.

Celebioglu, F., & Dall’erba, S. (2010). Spatial disparities across the regions of turkey: an exploratory spatial data analysis. Annals of Regional Science, 45(2). doi: 10.1007/s00168-009-0313-8.

Cochran, W. G. (1963). Sampling techniques. New York: John Wiley and Sons, Inc.

Czech Statistical Office, (2017). GDP in current prices. Retrieved from http://apl.czso.cz/pll/rocenka/rocenka.presmsocas (27.05.2019).

De Martino, R., & Barbato, R. (2003). Differences between women and men mba entrepreneurs: exploring family flexibility and wealth creation as career motivators. Journal of Business Venturing, 18(6). doi: 10.1016/S0883-9026(03) 00003-X.

De Winne, S., & Sels, L. (2010). Interrelationships between human capital, hrm and innovation in Belgian start-ups aiming at an innovation strategy. International Journal of Human Resource Management, 21. doi: 10.1080/09585192. 2010.505088.

Diaz-Garcia, M. C., & Jimenez-Moreno, J. (2010). Entrepreneurial intention: the role of gender. International Entrepreneurship Management Journal, 6. doi: 10.1007/s11365-008-0103-2.

Esnard-Flavius, T. (2010). Gender, entrepreneurial self-efficacy, and entrepreneurial attitude orientations: the case of the Caribbean. International Business & Economics Research Journal, 9(13). doi: 10.19030/iber.v9i13.650.

European Commission (2017). SBA fact sheet Czech Republic. Retrieved from: https://ec.europa.eu/docsroom/documents/32581/attachments/7/translations/en/renditions/native (08.05.2019).

Filser, M., & Eggers, F. (2014). EO and firm performance: a comparative study of Austria, Liechtenstein and Switzerland. South African Journal of Business Management ,45(1).

Frank, H., Lueger, M., & Korunka, C. (2007). The significance of personality in business startup intentions, start-up realization and business success. Entrepreneurship & Regional Development, 19(3). doi: 10.1080/08985620701218387.

Gergely, F. (2016). The effects of strategic orientations and perceived environment on firm performance. Journal of Competitiveness, 8(1). doi: 10.7441/joc.2016 .01.04.

Goktan, A. B., & Gupta, V. K., (2015). Sex, gender, and individual entrepreneurial orientation: evidence from four countries. International Entrepreneurship and management Journal, 11. doi: 10.1007/s11365-013-0278-z.

Gunerergin, M., Penbek, S. & Zaptcioglu, D. (2012). Exploring the problems and advantages of Turkish SMEs for sustainability. Procedia - Social and Behavioral Sciences, 58. doi: 10.1016/j.sbspro.2012.09.998.

Islam, A. M., Khan, M. K., Obaidullah, A. Z. M., & Alam, M. S. (2011). Effect of entrepreneur and firm characteristics on the business success of smes in Bangladesh. International Journal of Business and Management, 6(3). doi: 10.5539/ijbm.v6n3p289.

Jantunen, A., Puumalainen, K., Saarenketo, S., & Heiko, K. K. (2005). EO, dynamic capabilities and international performance. Journal of International Entrepreneurship, 3. doi: 10.1007/s10843-005-1133-2.

Jelenc L., Pisapia, J. & Ivanusic, N. (2016). Demographic variables influencing individual entrepreneurial orientation and strategic thinking capability. Journal of Economic and Social Development, 3(1).

Kato, M., Okamuro, H., & Honjo, Y. (2015). Does founder human capital matter for innovation? Evidence from Japanese start-ups. Journal of Small Business Management, 53(1). doi: 10.1111/jsbm.12094.

Khanagha, A., Dehkordi, A. M., Zali, M., R., S., & Hejazi, R. (2017). Performance implications of entrepreneurial orientation at public research and technology institutions Entrepreneurship and Sustainability Issues, 4(4). doi: 10.9770/jesi. 2017.4.4(15).

Kowo, S. A., Adenuga, O. A. O., & Sabitu, O. O. (2019). The role of SMEs development on poverty alleviation in Nigeria. Insights into Regional Development, 1(3). doi: 10.9770/ird.2019.1.3(3).

Kraus, S., Rigtering, J. P. C., Hughes, M., & Hosman, V. (2012). EO and the business performance of SMEs: a quantitative study from the Netherlands. Review of Managerial Science, 6. doi: 10.1007/s11846-011-0062-9.

KOSGEB, SME Strategy and action plan (2015). 2015-2018 KSEP Report. Retrieved from https://www.kosgeb.gov.tr/Content/Upload/Dosya/Mali %20Tablolar/KSEP/Kobi_Stratejisi_ve_Eylem_Plani_(2015-2018).pdf (09.05.2019).

Kozubíková, L., Homolka, L., & Kristalas, D. (2017). The effect of business environment and entrepreneurs’ gender on perception of financial risk in the SMEs sector. Journal of Competitiveness, 9(1). doi: 10.7441/joc.2017.01.03.

Kreiser, P. M., Marino, L. D., Dickson, P., & Weaver, K. M. (2010). Cultural influences on eo: the impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory & Practice, 34(5). doi: 10.1111/j.1540-6520.2010.00396.x.

Laforet, S. (2013). Organizational innovative outcomes in SMEs: effects of size, age and sector. Journal of World Business, 48. doi: 10.1016/j.jwb.2012.09.005.

Lafuente, E. M. & Vaillant, Y. (2013). Age driven influence of role-models on entrepreneurship in a transition economy. Journal of Small Business and Enterprise Development, 20(1). doi: 10.1108/14626001311298475.

Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H. & Pasanen, M. (2013). The effect of strategic orientations on business performance in SMEs a multigroup analysis comparing Hungary and Finland. International Marketing Review, 30(6). doi: 10.1108/IMR-09-2011-0230.

Lechner, C., & Gudmundsson, S. V. (2014). EO, firm strategy and small firm performance. International Small Business Journal, 32(1). doi: 10.1177/026624 2612455034.

Levesque, M., & Minniti, M. (2006). The effect of aging on entrepreneurial behavior. Journal of Business Venturing, 21. doi: 10.1016/j.jbusvent.2005 .04.003.

Levesque, M., & Minniti, M. (2011). Age matters: how demographics influence aggregate entrepreneurship. Strategic Entrepreneurship Journal, 5. doi: 10.10 02/sej.117.

Lim, S., & Envick, E. R., (2012). Gender and entrepreneurial orientation: a multi country study. International Entrepreneurship and Management Journal, 9. doi: 10.1007/s11365-011-0183-2.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1). doi: 10.2307/258632.

Mamman, A. (2014). Effect of entrepreneurship education on capacity building in Small and Medium Scale Enterprises (SMEs) in Nigeria. International Journal of Social Sciences and Entrepreneurship, 1(11).

Mengistae, T. (2006). Competition and entrepreneurs' human capital in small business longevity and growth. Journal of Development Studies, 42(5). doi: 10.1080/00220380600742050.

Minniti, M., & Nardone, C., (2007). Being in someone else’s shoes: the role of gender in nascent entrepreneurship. Small Business Economics, 28. doi: 10.1007/s11187-006-9017-y.

Mueller, S. L., & Conway Data-on, M. (2008). Gender-role orientation as a determinant of entrepreneurial self-efficacy. Journal of Developmental Entrepreneurship, 13(1). doi: 10.1142/S108494670800082X.

Munoz, J. M., Welsh, D. H. B., Chan, S., & Raven, P. V. (2015). Microenterprises in Malaysia: a preliminary study of the factors for management success. International Entrepreneurship and Management Journal, 11. doi: 10.1007/s11365-014-0302-y.

Naude, W., Gries, T., Wood, E., & Meintjiess, A., (2008). Regional determinants of entrepreneurial startups in a developing country. Entrepreneurship and Regional Development, 20. doi: 10.1080/08985620701631498.

OECD (2019). Financing SMEs and entrepreneurs: an OECD scoreboard. Retrieved from https://www.oecd-ilibrary.org/industry-and-services/financing-smes-and-entrepreneurs-2019_fin_sme_ent-2019-en (14.05.2019).

Oosterbeek, H., Van Praag, M., & Ijsselstein, A. (2010). The impact of entrepreneurship education on entrepreneurship skills and motivation. European Economic Review, 54. doi: 10.1016/j.euroecorev.2009.08.002.

Petrakis, P. (2005). Risk perception, risk propensity and entrepreneurial behavior: the Greek case. Journal of American Academy of Business, 7(1). doi: 10.1016/j. ijproman.2016.07.004

Pett, T. M., & Wolff, J. A. (2012). SME identity and homogeneity – are there meaningful differences between micro, small, and medium-sized enterprises? Journal of Marketing Development and Competitiveness, 6(2).

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future. Entrepreneurship: Theory and Practice, 33(3). doi: 10.1111/j.1540-6520.2009.00308.x.

Santos, F. J., Romero, I., & Fernández‐Serrano, J. (2012) SMEs and entrepreneurial quality from a macroeconomic perspective. Management Decision, 50(8). doi: 10.1108/00251741211261980.

Saunders, M. N. K., Philip Lewis, P., & Thornhill, A. (2015). Research methods for business students. Essex: Pearson Education Limited.

Schouten, M. J. (2019). Undoing gender inequalities: insights from the Portuguese perspective. Insights into Regional Development, 2. doi: 10.9770/ird.2019 .1.2(1).

Shinnar, R. S., Giacomin, O., & Janssen, F., (2012). Entrepreneurial perceptions and intentions: the role of gender and culture. Entrepreneurship Theory and Practice, 36(3). doi: 10.1111/j.1540-6520.2012.00509.x.

Soininen, J., Puumalainen, K., Sjögrén, H., & Syrjä, P. (2012). The impact of global economic crisis on SMEs. Management Research Review, 35(10). doi: 10.1108/01409171211272660.

Verner, T. (2011). National competitiveness and expenditure on education, research and development. Journal of Competitiveness, 2.

Van der Sluis, Van Praag, M., & Vijverberg, W. (2005). Entrepreneurship selection and performance: a meta-analysis of the impact of education in developing countries. World Bank Economic Review, 13(2). doi: 10.1093/wber/lhi013.

Welsh, D. H. B., Munoz, J. M., Deng, S., & Raven, P. V. (2013). Microenterprise performance and microenterprise zones (MEZOs) in China. Management Decision, 51(1). doi:10.1108/00251741311291292.

Zehir, C., Gurol, Y. , Karaboga, T., & Kole, Y. (2016). Strategic human resource management and firm performance: the mediating role of EO. Procedia - Social and Behavioral Sciences, 235. doi: 10.1016/j.sbspro.2016.11.045.

Zhang, Y., Duysters, G., & Cloodt, M. (2013). The role of entrepreneurship education as a predictor of university students´ entrepreneurial intention. International Entrepreneurship and Management Journal, 10(3). doi: 10.1007/s11365-012-0246-z.

Zortea-Johnston, E., Darroch, J., & Matear, S. (2012). Business orientations and innovation in small and medium sized enterprises. International Entrepreneurship and Management Journal, 8. doi: 10.1007/s11365-011-0170-7.

Wichitsathian, S., Nakruang, D. (2019). Knowledge integration capability and entrepreneurial orientation: case of Pakthongchai Silk Groups Residing. Entrepreneurship and Sustainability Issues, 7(2). doi: 10.9770/jesi.2019.7.2(13).

Published
2019-12-29
How to Cite
Ključnikov, A., Civelek, M., Čech, P., & Kloudová, J. (2019). Entrepreneurial orientation of SMEs’ executives in the comparative perspective for Czechia and Turkey. Oeconomia Copernicana, 10(4), 773-795. https://doi.org/10.24136/oc.2019.035
Section
Articles