Effect of Entrepreneurial Orientation and Customer Orientation on Bakery Performance

Abstract

This study attempts to investigate the effects of entrepreneurial orientation and customer orientation on bakeries’ performance. Stratified sampling technique was employed to study a total of 105 out of 130 SMEs that specializes in baking of bread and other flour products. The owner-manager 5-point likert scale questionnaire was designed and served both online and offline to address the survey questions. Partial least squares structural equation modeling (PLSSEM) technique was employed to assess the measurement and structural models indicators.The results of the study showed that entrepreneurial orientation dimensions (innovativeness, proactiveness, risk taking, autonomy and competitive aggressiveness) predict EO of bakeries in FCT and EO has significant effect on bakery performance. In this context, entrepreneurial orientation should make a significant contribution to SMEs’ performance when customer orientation is considered as an investment and a key factor for firms’ survival.