Entrepreneurial, market, and learning orientations and international entrepreneurial business venture performance in South African firms

Abstract

Purpose – This study examines the interrelationships between aspects of entrepreneurial, market, and learning orientations, and international entrepreneurial business venture (IEBV) performance. Design/methodology/approach – Data were collected from 396 entrepreneurs and 143 senior managers from early stage, growth-oriented firms in the Republic of South Africa. These firms had an international focus in that 20 per cent began exporting from their inception and the remaining 80 per cent either began exporting within three years of inception or planned to export within three years of inception. Given the multidimensional nature of IEBV performance, structural equation modeling (AMOS) was used to test the measurement and substantive models. Findings – Results indicate that IEBV performance is positively related to the innovativeness component of an entrepreneurial orientation (EO), a market orientation, and a learning orientation. Contrary to expectations, the communications aspect of EO is inversely related to objective performance measures. Research limitations/implications – By design, only successful IEBVs in South Africa were studied, potentially limiting generalizability. Practical implications – Financiers can enhance the probability of success by assigning a greater weight to an entrepreneur's creativity. Originality/value – This is the first examination of the role of all three orientations and multidimensional measures of objective and subjective performance. It examines South Africa, a more dynamic, changing and hostile business environment. Managers and financiers can enhance their probability of success by developing the different orientations.