Performance and entrepreneurial orientation in SMEs: the case of Abu Dhabi Online publication date: Fri, 13-Sep-2019
by Mohamed Sherif; Laura Galloway; Hajer Zarrouk
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 15, No. 3, 2019
Abstract: The paper explores entrepreneurial orientation (EO) in SMEs in the Middle Eastern state of Abu Dhabi in the United Arab Emirates. We hypothesise that emerging market context and unique UAE business structures will impact the expression and effects of the five dimensions of EO. Using OLS and GMM techniques, our study shows that innovation, risk-taking, pro-activeness and competitive aggressiveness do not correlate positively with performance, but autonomy does. By studying EO in a unique region and amongst SMEs we contribute to the implementation and development of theory in alternative business contexts. We suggest the EO dimensions co-depend, with autonomy a capstone dimension in SMEs upon which the others rely. At a local level, we suggest policy might take steps to encourage autonomy by reducing ownership restrictions, and improve the institutional environment to facilitate risk-taking and, in turn, the other EO dimensions.
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