Establishing the causal relationship between entrepreneurial orientation, organizational competencies and market orientation on innovative orientation using the global entrepreneurship monitor (GEM) database for region III

• Main Author: Reyes, Joan C.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Entrepreneurship > Philippines; Small business > Philippines; Business; Entrepreneurial and Small Business Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/579
• Institution: De La Salle University

This research was conducted to determine the factors that cause the innovative orientation of MSMEs in Region III other than factors found in the 2014 Global Entrepreneurship Monitor (GEM) database. The researcher employed the mixed methods particularly the sequential explanatory design to explain and interpret the quantitative data collected from 170 entrepreneurs in Region III that are found in GEM 2014 database while the qualitative data were collected through a focus group discussion conducted to 25 MSMEs across the nascent entrepreneurs, owner-managers of new and established businesses. For the quantitative data, the independent variables used were composed of entrepreneurial orientation such as proactiveness, autonomy, risk-taking, and innovativeness. The moderating variables included the economic environment (income and capital) and socio-cultural environment (career choice, social status and media). The dependent variables used were composed of types of Innovative Orientation ( IO) such as product, market and technology. For the qualitative data, the independent variables consisted of competitive aggressiveness, organizational competencies (resource allocation, technology/operations focus) and market orientation (customer orientation and competitor orientation). The moderating variables comprised of the learning orientation (facilitated leadership and decentralized strategic planning) and institutional context which was measured in terms of political environment (government programs and policies on entrepreneurship). Lastly, the dependent variables validated by the Focus Group Discussion (FGD) were the other types of innovative orientation such as behavioral and strategic. The multinomial logistic regression and content analysis were utilized to process and analyze the quantitative and qualitative data.The key contribution of this study is to explore the causal relationship between entrepreneurial orientation, organizational competencies and market orientation on the innovative orientation of MSMEs in Region III. The Entrepreneurial Orientation (EO) variables are matched with GEM entrepreneurial attributes which resulted to proactiveness as perceived opportunity, autonomy as perceived capability, risk-taking as fear of failure, and innovativeness as motivation. The results of the study revealed that there are seven (7) EO variables causing innovative orientation to wit: proactiveness, autonomy, risk-taking, innovativeness, competitive aggressiveness, networking and passion in doing the business. The findings also confirm that entrepreneurs in Region III who demonstrate the 7 variables of entrepreneurial orientation have the tendency to be product innovative oriented. Organizational competencies and market orientation also cause IO in addition to factors found in GEM database. Government agencies partnership with schools and universities in Region III can accelerate the assistance given to MSMEs particularly in the areas of product and market research and training. These government agencies should forge tie-up with Commission on Higher Education (CHED) to include assisting MSMEs in the mandates of Higher Education Institutions (HEIs) to become a catalyst for enterprise development in the region.