Entrepreneurial Orientation Impact on Entrepreneurial Behavior in the Service Industry

Ali Ali, Fayeq (2024) Entrepreneurial Orientation Impact on Entrepreneurial Behavior in the Service Industry. Eurasian Journal of Management & Social Sciences. ISSN 2708-034X

Text (Research Article) EJMSS-V5I1P102.pdf - Published Version Download (990kB)

Abstract

The current study is centered on understating the concept of entrepreneurial orientation and entrepreneurial behavior with the application in the restaurant industry in Erbil, KRG. The service industry is expanding its share of GDP all around the world and growing among other sectors much faster than before. The sustainability of the industry is based on numerous factors. Here the focus is on finding reasons behind the frequent opening and closing of restaurants. The study revolves around entrepreneurship theory specifically entrepreneurial orientation and entrepreneurial behavior. Problem framed, as there is a need to study and uncover the behavioral aspect of the restaurateurs, assessing the underlying characteristics of entrepreneurial orientation, which can have an impact on strengthening the entrepreneurial behavior among restaurateurs. Research questions asked to solve problems are concentrated on finding important factors constituting entrepreneurial orientation, the importance of entrepreneurial behavior, and assessing the impact of entrepreneurial orientation on entrepreneurial behavior. In the same way, objectives are structured to reach the expected outcome of research justifying the underlying factors of entrepreneurial orientation, knowing the importance of entrepreneurial behavior for restaurateurs, and validating the relationship between entrepreneurial orientation and entrepreneurial behavior. The current study used multiple linear regression as a statistical tool to measure the formulated research model based on the six hypotheses to test the relationship and impact of autonomy, innovativeness, proactiveness, risk-taking, competitive aggressiveness, and Entrepreneurial orientation on entrepreneurial behavior. A sample size of 138 restaurateurs was analyzed for variable reliability, demographic, and descriptive statistics with testing items for inclusion by using the statistical tool of one sample t-test and validating the concept based on the factor analysis factor loading. The factor analysis was used for validating exiting factors with items loading to specified factors having KMO and Bartlett’s Test of Sphericity for independent variable (.710) and dependent variable (.796). Research is concluded by answering research questions and following objectives with the justification for using the factor analysis to strengthen the current study. Hypothesis tested for the II correlation and regression and presented as the outcome of the study with dependent variable Entrepreneurial Behavior, where Autonomy (β = .032, Beta= .033), Innovativeness (β = .187, Beta= .184), Proactiveness (β = .344, Beta= .327), Risk-taking (β = -.053, Beta= -.047), Competitive Aggressiveness (β = .317, Beta= .448), Entrepreneurial Orientation (β = .820, Beta= .636). Though the research is an ongoing process, still the research here ended with recommendations to the government and private ventures to support the industry. The future is always unseen and gets explored with changes, so this research as well can have much deeper and broader insights for future research across other industries and countries.

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