International Journal of Academic Research in Business and Social Sciences

search-icon

The Effect of Entrepreneurial Orientation and Innovation towards Small, and Medium Enterprises (SMES) Performance through Motivation

Open access
Problems regarding the performance of Small and medium enterprises (SMEs) based on the creative economy have become a priority issue for both practitioners and academics. Due to the importance of entrepreneurship and innovation in the SMEs companies, the current study investigates the effect of entrepreneurial orientation and innovation towards SMEs performance through manager motivation in UAE. The research design was quantitative, descriptive, causal, and cross-sectional held by an online questionnaire tool targeted all women executive manager who run SMEs of UAE .This study used type stratified random sampling technique, which is a mix between simple random sampling and stratified sampling. Using the AMOS software, the Structural Equation Model (SEM) was adopted to analyze a sample of 439 surveys and examine the hypotheses. The outcome of this study indicated that entrepreneurial orientation has a significant positive effect on SMEs performance, and it confirmed that innovation practices has a significant positive effect on SMEs performance. Moreover, manager motivation has proved to be a mediator between entrepreneurial orientation and SMEs performance. Furthermore, current research findings contribute to extending existing relevant knowledge about the effect of entrepreneurial orientation and innovation towards SMEs performance through manager motivation in UAE and understanding the relationship between these variables to be of significant guidance to managing entrepreneurship in emerging economies. The current research contributes to the present literature since very limited studies investigated the entrepreneurial orientation and innovation on SMEs performance. Moreover, previous studies did not sufficiently analyze the effects of entrepreneurial orientation on SMEs performance with the contribution of manager motivation. thus helping to close the research gap related to these relationships from an emerging-economy perspective.
Adam, N. A., and Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of innovation and entrepreneurship, 10(1), p.15.
Adams, S., Quagrainie, F. A., and Klobodu, E. K. M. (2017). Women entrepreneurial orientation, motivation, and organizational performance in Ghana. Small Enterprise Research, 24(2), pp.189-205.
Akoglu, H. (2018). User's guide to correlation coefficients. Turkish Journal of Emergency Medicine. 18(2018), 91-93.
Aliasghar, O., Sadeghi, A. and Rose, E. L. (2023). Process innovation in small-and medium-sized enterprises: The critical roles of external knowledge sourcing and absorptive capacity. Journal of Small Business Management, 61(4), pp.1583-1610.
Al-Jedaia, Y., and Mehrez, A. (2020). The effect of performance appraisal on job performance in governmental sector: The mediating role of motivation. Management science letters, 10(9), pp.2077-2088.
Atshan, N. A., Zaid, M. I., AL-Abrrow, H., and Abbas, S. (2024). Entrepreneurial Motivations of Women in the Middle East. In Entrepreneurial Motivations: Strategies, Opportunities and Decisions (pp. 151-172). Cham: Springer Nature Switzerland.
Berchtold, A. (2019). Treatment and reporting of item-level missing data in social science research. International Journal of Social Research Methodology, 22(5), 431-439.
Budiarto, B. W., Karyadi, S., Judijanto, L., and Febrian, W. D. (2024). Analysis Of The Influence Of Spiritual Capital, Motivation And
Carrasco-Carvajal, O., García-Pérez-de-Lema, D., and Castillo-Vergara, M. (2023). Impact of innovation strategy, absorptive capacity, and open innovation on SME performance: A Chilean case study. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), p.100065.
Carrasco-Carvajal, O., García-Pérez-de-Lema, D., and Castillo-Vergara, M. (2023). Impact of innovation strategy, absorptive capacity, and open innovation on SME performance: A Chilean case study. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), p.100065.
Castro-Valdivia, M. (2021). The influence of the Entrepreneur as a determining factor in the History of the Company. Companies and Entrepreneurs in the History of Spain: Centuries Long Evolution in Business since the 15th century, pp.1-16.
Chandrakant, V. (2017). Importance of Employee Motivation and Job Satisfaction For Organizational Performance, International Journal of Social Science and Interdisciplinary Research, 6(2). 10-20.
Chelliah, M. K., Aravindan, K. L., and Muthaiyah, S. (2022). Entrepreneurial orientation and open innovation promote the performance of services SMEs: The mediating role of cost leadership. Administrative Sciences, 13(1), p.1.
Conner, K. R. (1991). A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm?. Journal of management, 17(1), pp.121-154.
Dash, G., and Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173, 121092.
Dhakal, C. P. (2018). Interpreting the basic outputs (SPSS) of multiple linear regression. International Journal of Science and Research (IJSR), 8(6), pp.1448-1452.
Diabate, A., Allate, B. M., Wei, D., and Yu, L. (2020). Do firm and entrepreneur characteristics play a role in SMEs’ sustainable growth in a middle-income economy like Côte d’Ivoire?. Sustainability, 11(6), p.1557.
Fornell, C. G., and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
Hair, J. F., Risher, J. J., Sarstedt, M., and Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), pp.2-24.
Hongyi, L. (2021). The role and logic of nontraditional security in China’s engagement in global governance mechanisms under Xi Jinping’s Regime. Journal of Chinese Political Science, 26(3), pp.505-523.
Ahmad, A. O., Fam, S. F., Chuan, Z. L., Wahjono, S. I., Nusa, N. M., and Husseini, S. A. (2022). Integration of TQM practices and ERP to enhance innovation culture and innovative work behavior: A proposed framework. Journal of Positive School Psychology, 6(3), pp.4668-4676.
Kiani, A., Yang, D., Ghani, U., and Hughes, M. (2022). Entrepreneurial passion and technological innovation: the mediating effect of entrepreneurial orientation. Technology Analysis and Strategic Management, 34(10), pp.1139-1152.
Long, T. Q., Hoang, T. C., and Simkins, B. (2023). Gender gap in digital literacy across generations: Evidence from Indonesia. Finance Research Letters, 58, p.104588.
Mahlamäki, T., Rintamäki, T., and Rajah, E. (2019). The role of personality and motivation on key account manager job performance. Industrial Marketing Management, 83, 174-184.
Melo, I. C., Queiroz, G. A., Junior, P. N. A., Sousa, T.B ., Yushimito, W. F., and Pereira, J. (2023). Sustainable digital transformation in small and medium enterprises (SMEs): A review on performance. Heliyon, 9(3).
Minhas, W. A. (2018). Advancing Entrepreneurship in the United Arab Emirates: start-up challenges and opportunities.
Mohamed, S. M. A. (2023). The impact of innovation as a recovery strategy on the financial performance of SMEs within the scope of the Covid-19 pandemic (Master's thesis, Bursa Uluda? Üniversitesi).
Nawaz, J., Shahab, H., Ziaullah, M., and Raza, H. (2020). The Influence of project manager’s motivation on project success through developing trust and knowledge sharing. Information Management and Computer Science (IMCS), 3(2), 22-24.
Nawaz, J., Shahab, H., Ziaullah, M., and Raza, H. (2020). The Influence of project manager’s motivation on project success through developing trust and knowledge sharing. Information Management and Computer Science (IMCS), 3(2), 22-24.
Owalla, B., Gherhes, C., Vorley, T. and Brooks, C. (2022). Mapping SME productivity research: A systematic review of empirical evidence and future research agenda. Small Business Economics, 58(3), pp.1285-1307.
Papadopoulou, G. (2022). The economic development of tourism in the United Arab Emirates. In Entrepreneurial Rise in the Middle East and North Africa: The Influence of Quadruple Helix on Technological Innovation (pp. 111-123). Emerald Publishing Limited.
Paula, I. C. D., Campos, E. A. R .D., Pagani, R. N., Guarnieri, P., and Kaviani, M. A. (2020). Are collaboration and trust sources for innovation in the reverse logistics? Insights from a systematic literature review. Supply Chain Management: An International Journal, 25(2), pp.176-222.
Paulus, A. L., and Hermanto, Y. B. (2022). The competitive advantage of furniture SMEs in East Java: The role of aggressiveness in entrepreneurship orientation. Economies, 10(6), 139.
Rauch, A., and Hatak, I. (2016). A Meta-Analysis of Different HR-Enhancing Practices and Performance of Small and Medium Sized Firms. Journal of Business Venturing, 31(5), 485-504.
Sandhu, M. A., Iqbal, J., Ali, W., and Tufail, M. S. (2017). Effect of Employee Motivation on Employee Performance. Journal of Business and Social Review in Emerging Economies, 3(1), 85-100.
Sandybayev, A. (2018). Women entrepreneurship in the UAE: factors of motivation and drive. International Journal of Pure and Applied Mathematics, 119(15), pp.2061-2069.
Sentanu, I. G. E. P. S., and Praharjo, A. (2021). Effect of entrepreneurial orientation and knowledge sharing on business performance. Jurnal Inovasi Ekonomi, 5(01).
Siverbo, S. (2023). Verbal rewards and public managers’ autonomous motivation. Financial Accountability and Management, 39(3), pp.534-553.
Stedman, R. C., Connelly, N. A., Heberlein, T. A., Decker, D. J., and Allred, S. B. (2019). The end of the (research) world as we know it? Understanding and coping with declining response rates to mail surveys. Society and Natural Resources, 32(10), 1139-1154.
Sylvia, H. (2017). How Entrepreneurs Develop and Influence Their Employee. PhD. Thesis.
Sylvia, H. (2017). How Entrepreneurs Develop and Influence Their Employee. PhD. Thesis.
Timotius, F. C. W. (2019). Relationship Between Entrepreneurial Orientation and Business Performance. Relationship Between Entrepreneurial Orientation and Business Performanc, 8(11), 3030-2035.
Timotius, F. C. W. (2020). Relationship Between Entrepreneurial Orientation and Business Performance. Relationship Between Entrepreneurial Orientation and Business Performanc, 8(11), 3030-2035.
Urmetzer, S., and Pyka, A. (2020). Innovation systems for sustainability. In Decent Work and Economic Growth (pp. 600-611). Cham: Springer International Publishing.
Vlasov, M. (2022). Assessing the impact of human capital on innovative development. In 16 September 2021 through 17 September 2021 (pp. 1055-1063). Academic Conferences and Publishing International Limited.
Wahjoedi, T., 2021. The effect of organizational culture on employee performance mediated by job satisfaction and work motivation: Evident from SMEs in Indonesia. Management Science Letters, 11(7), pp.2053-2060.
Zarrouk, H., Sherif, M., Galloway, L. and El Ghak, T. (2020). Entrepreneurial orientation, access to financial resources and SMEs’ business performance: The case of the United Arab Emirates. Journal of Asian Finance, Economics and Business, 7(12), pp.465-474.
Aleid, A. A. A., & Khalil, S. N. (2024). The Effect of Entrepreneurial Orientation and Innovation towards Small, and Medium Enterprises (SMES) Performance through Motivation. International Journal of Academic Research in Business and Social Sciences, 14(12), 2711–2730.