Entrepreneurial Orientation and Effectiveness of Small and Medium Agro-Based Enterprises (SMAEs) in Malaysia – Mediating Effect of Knowledge and Network Strategies

  • Amran Awang
  • Zainal Ariffin Ahmad University Science Malaysia (USM), Malaysia
  • Abdul Rashid Said Asghar University Technology MARA (UiTM), Malaysia
Keywords: Entrepreneurial orientation, knowledge, networks, small and medium agro-based enterprises (SMAEs)

Abstract

This paper aims to explore the mediating role of knowledge andnetworking on entrepreneurial orientation (EO)-performance relationship among the small and medium agro-based enterprises (SMAEs) in Malaysia. The concept is somewhat vague thus knowledge-base and networking strategies are some basic features to understand in the relationships. EO, knowledge and network were entrepreneurial capabilities under the purview of the resource-based view (RBV) that were found to explain firm’s effectiveness. Results of the study noted that EO dimensions among SMAEs entrepreneurs showed strong relationship to knowledge-base elements of human capital development and tacit knowledge and network variables (consist of strategic alliance and social network capabilities). The analysis done to 615 Malaysian agro-based small business entities (SMAEs) discovered social network as mediator in
the EO’s competitiveness-effectiveness relationship. The results imply that Malaysian SMAEs consider social networking as an efficient means of entrepreneurial firms to be more effective. The study encapsulates proposed future research directions.

Published
2017-06-19