Effect of Entrepreneurial Orientation on Enterprise Performance: Basis for Microenterprise Community Mobile App Development

Abstract

Earlier studies consider entrepreneurial orientation and entrepreneurial competencies as essential factors in achieving better enterprise performance. This research investigated the effect of entrepreneurial orientation in terms of (a) creativity and innovativeness, (b) risk-taking propensity, (c) proactiveness, and (d) autonomy on entrepreneurial competencies and enterprise performance. The respondents of this study were the micro-enterprise business owners who operate in Lipa City. This study utilized a quantitative research approach with a descriptive and causal research design method. Multiple regression was used to analyze the results. The findings revealed that entrepreneurial orientation significantly affects micro-enterprise performance. All the four dimensions of entrepreneurial orientation such as creativity and innovativeness, risk-taking propensity, proactiveness, and autonomy significantly predict enterprise performance and entrepreneurial competencies. Further, entrepreneurial competencies significantly and partially mediates the relationship between entrepreneurial orientation and micro-enterprise performance. This study recommends the development of a mobile application platform specifically designed for the micro-enterprise community. The goal of the mobile application platform is to influence the micro-enterprise business owners in Lipa City, Batangas to grow their understanding of the importance of developing entrepreneurial orientation and entrepreneurial competencies to achieve better enterprise performance. Keywords: entrepreneurial competencies, enterprise performance, entrepreneurial orientation, creativity and innovativeness, risk-taking propensity, proactiveness, autonomy, micro-enterprise