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The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link
Author(s) -
Firdaus Basbeth,
Ai Ramli,
Muhammad Ashlyzan Razik,
Rosmaizura Mohd Zain,
Noorshella Che Nawi
Publication year - 2019
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v10n2p20
Subject(s) - business , competitive advantage , order (exchange) , industrial organization , dimension (graph theory) , marketing , service (business) , catering industry , entrepreneurial orientation , entrepreneurship , mathematics , finance , pure mathematics
Despite the increase market in catering industry by 37% per year, the number of SME-catering service firms is only 30.000, or only 5% from the total number of SME in 2016. From 30,000 registered catering service company, only 10% is an active business with annual growth rate (3%). In order to achieve competitive advantage and growth, firms will develop appropriate competitive strategy, strategy which directly relate to firm performance. The purpose of this paper is to develop a better understanding of the relationship between competitive strategy and firm performance in a different entrepreneurial orientation (EO) dimension. The statistical results revealed a) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between differentiation strategy and firm performance b) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between CL strategy and firm performance.

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