Entrepreneurial Orientation and Firm Performance of Tourist Accommodation Establishment in Ghana

Abstract

Entrepreneurial Orientation in recent years is considered as an important area that influences the performance of most firms. It is evident in research that there is a strong correlation between performance and entrepreneurial orientation. Originating from the resource based view, entrepreneurial orientation and firm resources have been identified as important variables that impact on the performance of entrepreneurial firms. In the Central region, tourist accommodation and lodging establishments are very lucrative investments that generate a lot of revenues and taxes for owner/managers and the state respectively. These lodging facilities provide some form of employment for over 1800 workers. Most businesses and suppliers within the catchment area also depend on these lodgment facilities and its survival is of utmost importance to them. There is an intense competition from globalization resulting in increased volatility in business environments worldwide. Inability to adapt to such volatility threatens the survival and growth of entrepreneurial ventures such as tourist accommodation establishments. The explanatory survey was carried out in the Central Region, one of Ghana’s ten administrative regions and home to about 142 licensed lodging facilities, comprising 3 star, 2 star, 1 star, guest houses, budget hotels and a hostel where 113 were randomly selected. The study revealed that managers were highly proactive but exhibited low levels of the other Entrepreneurial Orientation dimensions, particularly competitive aggressiveness and risk taking. It was therefore established that being innovative, proactive, taking risks and being an autonomous leader impacts slight on financial performance. Therefore, to improve the financial performance of their businesses, key decision makers must be more competitively and comparatively aggressive by intensifying efforts to outperform their competitors.