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ENTREPRENEURIAL ORIENTATION AND BUSINESS PERFORMANCE IN RETAIL PHARMACIES: EVIDENCE FROM BAHRAIN
Corresponding Author(s) : Shaju George
Humanities & Social Sciences Reviews,
Vol. 8 No. 5 (2020): September
Abstract
Purpose of the study: The purpose of this study is to examine the influence of the five dimensions of entrepreneurial orientation (EO): innovativeness, autonomy, risk-taking, proactiveness, and competitive aggressiveness on the business performance of retail pharmacies.
Methodology: This study used a quantitative research approach. The data from 136 pharmacists operating in different retail pharmacies in the Kingdom of Bahrain were collected through a structured questionnaire. Multiple regression was applied to test the five hypotheses that were developed based on the literature review by using SPSS.
Main Findings: The study found that there is a significant positive association between pharmacy business performance and two dimensions of EO: innovativeness and risk-taking. However, autonomy, proactiveness, and competitive aggressiveness have no significant association with the business performance of retail pharmacies in Bahrain. Yet, the findings showed that not all EO dimensions have a significant relationship with business performance; therefore, the study suggested that retail pharmacies must be careful while executing EO.
Applications of this study: The findings of this study is anticipated to help retail pharmacies to develop their business, as it may offer significant insight and empirical evidence for pharmacy owners or decision-makers to adopt entrepreneurial orientation in order to achieve superior performance and growth in their businesses.
Novelty/Originality of the Study: This study contributes to the entrepreneurial orientation literature in the retail pharmacy sector. The findings of this study show that the entrepreneurs in the retail pharmacy sector need to focus merely on two dimensions of EO (Innovativeness and risk-taking) to yield better performance. Moreover, this study is one of the limited studies that provide empirical support for the influence of EO on the retail pharmacy industry. This is a pioneering empirical study to examine the influence of relevant dimensions of entrepreneurial orientation on the business performance of retail pharmacies in the gulf countries and the Kingdom of Bahrain in particular.
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- Alvarez, S. A., & Barney, J. B. (2017). Resource-based theory and the entrepreneurial firm. Strategic Entrepreneurship, 87-105. https://doi.org/10.1002/9781405164085.ch5 DOI: https://doi.org/10.1002/9781405164085.ch5
- Asieba, I. O., & Nmadu, T. M. (2018). An assessment of the impact of entrepreneurial skills of community pharmacists on pharmaceutical business performance in Jos metropolis. Pharmacy Practice, 16(1), 1110. https://doi.org/10.18549/pharmpract.2018.01.1110 DOI: https://doi.org/10.18549/PharmPract.2018.01.1110
- Balkanski, S., Simeonova, J., Gitev, I., & Getov, I. (2019). Evaluation of the current status of the value-added pharmacy services and pharmacists' attitude in Bulgaria. Pharmacia, 66(2), 79-83. https://doi.org/10.3897/pharmacia.66.e36530 DOI: https://doi.org/10.3897/pharmacia.66.e36530
- Buli, B. M. (2017). Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry. Management Research Review, 40(3), 292-309. https://doi.org/10.1108/mrr-07-2016-0173 DOI: https://doi.org/10.1108/MRR-07-2016-0173
- Chen, Z., & Zheng, L. (2018). How does subsidiary autonomy influence performance? The moderating role of uncertainty. Nankai Business Review International, 9(3), 348-365. https://doi.org/10.1108/nbri-03-2017-0013 DOI: https://doi.org/10.1108/NBRI-03-2017-0013
- Doucette, W. R., Kreling, D. H., Schommer, J. C., Gaither, C. A., Mott, D. A., & Pedersen, C. A. (2006). Evaluation of community pharmacy service mix: Evidence from the 2004 national pharmacist workforce study. Journal of the American Pharmacists Association, 46(3), 348-355. https://doi.org/10.1331/154434506777069471 DOI: https://doi.org/10.1331/154434506777069471
- Doucette, W. R., Nevins, J. C., Gaither, C., Kreling, D. H., Mott, D. A., Pedersen, C. A., & Schommer, J. C. (2012). Organizational factors influencing pharmacy practice change. Research in Social and Administrative Pharmacy, 8(4), 274-284. https://doi.org/10.1016/j.sapharm.2011.07.002 DOI: https://doi.org/10.1016/j.sapharm.2011.07.002
- Frenzel, J. E. (2018). A Critical Analysis of the Entrepreneurial Orientation, Trait Emotional Intelligence, and Entrepreneurial Services Offered by Pharmacists in the Upper Midwest [Doctoral dissertation]. ProQuest Dissertations and Theses Global.
- Gelderen, M. v. (2016). Entrepreneurial autonomy and its dynamics. Applied Psychology, 65(3), 541-567. https://doi.org/10.1111/apps.12066 DOI: https://doi.org/10.1111/apps.12066
- Giachetti, C. (2016). Competing in emerging markets: Performance implications of competitive aggressiveness. Management International Review, 56(3), 325-352. https://doi.org/10.1007/s11575-015-0263-6 DOI: https://doi.org/10.1007/s11575-015-0263-6
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Prentice-Hall, Inc. https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/References Papers.aspx?ReferenceID=2336013&page_id=0.5917653041289754
- Harrison, C., Paul, S., & Burnard, K. (2016). Entrepreneurial leadership in retail pharmacy: Developing economy perspective. Journal of Workplace Learning, 28(3), 150-167. https://doi.org/10.1108/jwl-01-2015-0004 DOI: https://doi.org/10.1108/JWL-01-2015-0004
- Hernández-Linares, R., Kellermanns, F. W., López-Fernández, M. C., & Sarkar, S. (2019). The effect of socioemotional wealth on the relationship between entrepreneurial orientation and family business performance. BRQ Business Research Quarterly. https://doi.org/10.1016/j.brq.2019.03.002 DOI: https://doi.org/10.1016/j.brq.2019.03.002
- Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661. https://doi.org/10.1016/j.indmarman.2006.04.003 DOI: https://doi.org/10.1016/j.indmarman.2006.04.003
- Jambulingam, T., Kathuria, R., & Doucette, W. R. (2005). Entrepreneurial orientation as a basis for classification within a service industry: The case of retail pharmacy industry. Journal of Operations Management, 23(1), 23-42. https://doi.org/10.1016/j.jom.2004.09.003 DOI: https://doi.org/10.1016/j.jom.2004.09.003
- Jia, J., Wang, G., Zhao, X., & Yu, X. (2014). Exploring the relationship between entrepreneurial orientation and corporate performance. Nankai Business Review International, 5(3), 326-344. https://doi.org/10.1108/nbri-05-2014-0024 DOI: https://doi.org/10.1108/NBRI-05-2014-0024
- Judge, G. G., Griffiths, W. E., Hill, R. C. Lutkepohl, H. & Lee, T. (1985). The Theory and Practice of Econometrics, (2nd ed.). New York: John Wiley and Sons.
- Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36. https://doi.org/10.1007/bf02291575 DOI: https://doi.org/10.1007/BF02291575
- Kantur, D. (2016). Strategic entrepreneurship: Mediating the entrepreneurial orientation-performance link. Management Decision, 54(1), 24-43. https://doi.org/10.1108/md-11-2014-0660 DOI: https://doi.org/10.1108/MD-11-2014-0660
- Keh, H. T., Der Foo, M., & Lim, B. C. (2002). Opportunity evaluation under risky conditions: The cognitive processes of entrepreneurs. Entrepreneurship Theory and Practice, 27(2), 125-148. https://doi.org/10.1111/1540-8520.00003 DOI: https://doi.org/10.1111/1540-8520.00003
- Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. https://doi.org/10.5465/amr.1996.9602161568 DOI: https://doi.org/10.5465/amr.1996.9602161568
- Macko, A., & Tyszka, T. (2009). Entrepreneurship and risk taking. Applied Psychology, 58(3), 469-487. https://doi.org/10.1111/j.1464-0597.2009.00402.x DOI: https://doi.org/10.1111/j.1464-0597.2009.00402.x
- Mattingly, T. J., Mullins, C. D., Melendez, D. R., Boyden, K., & Eddington, N. D. (2019). A systematic review of entrepreneurship in pharmacy practice and education. American Journal of Pharmaceutical Education, 83(3), 7233. https://doi.org/10.5688/ajpe7233 DOI: https://doi.org/10.5688/ajpe7233
- Mohamed, N. A. (2018). Entrepreneurial Orientation and Small and Medium Enterprises Performance in Somalia. Jour of Adv Research in Dynamical & Control Systems, 10(6), 116-122. https://www.researchgate.net/publication/337137474_Entrepreneurial_Orientation_and_Small_and_Medium_Enterprises_Performance_in_Somalia
- Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15-23. https://doi.org/10.1016/0148-2963(95)00159-x DOI: https://doi.org/10.1016/0148-2963(95)00159-X
- Naldi, L., Nordqvist, M., Sjöberg, K., & Wiklund, J. (2007). Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review, 20(1), 33-47. https://doi.org/10.1111/j.1741-6248.2007.00082.x DOI: https://doi.org/10.1111/j.1741-6248.2007.00082.x
- Nobrega, D. (2012). An assessment of the entrepreneurial orientation of pharmacists in Gauteng [Doctoral dissertation]. http://repository.nwu.ac.za/bitstream/handle/10394/8678/De_Nobrega_C.pdf?sequence=1&isAllowed=y
- Oly Ndubisi, N., & Iftikhar, K. (2012). Relationship between entrepreneurship, innovation and performance. Journal of Research in Marketing and Entrepreneurship, 14(2), 214-236. https://doi.org/10.1108/14715201211271429 DOI: https://doi.org/10.1108/14715201211271429
- Oni, E. O. (2012). The relevance of entrepreneurial proactiveness on business performance: Nigerian companies experience. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(835), 1-17. https://www.arabianjbmr.com/pdfs/KD_VOL_1_6/7.pdf
- Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761-787. https://doi.org/10.1111/j.1540-6520.2009.00308.x DOI: https://doi.org/10.1111/j.1540-6520.2009.00308.x
- Salavou, H. (2004). The concept of innovativeness: Should we need to focus? European Journal of Innovation Management, 7(1), 33-44. https://doi.org/10.1108/14601060410515628 DOI: https://doi.org/10.1108/14601060410515628
- Schmidt, R. Ä., & Pioch, E. A. (2005). Community pharmacies under pressure – can branding help? International Journal of Retail & Distribution Management, 33(7), 494-504. https://doi.org/10.1108/09590550510605569 DOI: https://doi.org/10.1108/09590550510605569
- Shan, P., Song, M., & Ju, X. (2016). Entrepreneurial orientation and performance: Is innovation speed a missing link? Journal of Business Research, 69(2), 683-690. https://doi.org/10.1016/j.jbusres.2015.08.032 DOI: https://doi.org/10.1016/j.jbusres.2015.08.032
- Smith, B., & Jambulingam, T. (2018). Entrepreneurial orientation. International Journal of Pharmaceutical and Healthcare Marketing, 12(2), 158-180. https://doi.org/10.1108/ijphm-07-2017-0038 DOI: https://doi.org/10.1108/IJPHM-07-2017-0038
- Wang, Y., & Poutziouris, P. (2010). Entrepreneurial risk taking: Empirical evidence from UK family firms. International Journal of Entrepreneurial Behavior & Research, 16(5), 370-388. https://doi.org/10.1108/13552551011071841 DOI: https://doi.org/10.1108/13552551011071841
References
Alvarez, S. A., & Barney, J. B. (2017). Resource-based theory and the entrepreneurial firm. Strategic Entrepreneurship, 87-105. https://doi.org/10.1002/9781405164085.ch5 DOI: https://doi.org/10.1002/9781405164085.ch5
Asieba, I. O., & Nmadu, T. M. (2018). An assessment of the impact of entrepreneurial skills of community pharmacists on pharmaceutical business performance in Jos metropolis. Pharmacy Practice, 16(1), 1110. https://doi.org/10.18549/pharmpract.2018.01.1110 DOI: https://doi.org/10.18549/PharmPract.2018.01.1110
Balkanski, S., Simeonova, J., Gitev, I., & Getov, I. (2019). Evaluation of the current status of the value-added pharmacy services and pharmacists' attitude in Bulgaria. Pharmacia, 66(2), 79-83. https://doi.org/10.3897/pharmacia.66.e36530 DOI: https://doi.org/10.3897/pharmacia.66.e36530
Buli, B. M. (2017). Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry. Management Research Review, 40(3), 292-309. https://doi.org/10.1108/mrr-07-2016-0173 DOI: https://doi.org/10.1108/MRR-07-2016-0173
Chen, Z., & Zheng, L. (2018). How does subsidiary autonomy influence performance? The moderating role of uncertainty. Nankai Business Review International, 9(3), 348-365. https://doi.org/10.1108/nbri-03-2017-0013 DOI: https://doi.org/10.1108/NBRI-03-2017-0013
Doucette, W. R., Kreling, D. H., Schommer, J. C., Gaither, C. A., Mott, D. A., & Pedersen, C. A. (2006). Evaluation of community pharmacy service mix: Evidence from the 2004 national pharmacist workforce study. Journal of the American Pharmacists Association, 46(3), 348-355. https://doi.org/10.1331/154434506777069471 DOI: https://doi.org/10.1331/154434506777069471
Doucette, W. R., Nevins, J. C., Gaither, C., Kreling, D. H., Mott, D. A., Pedersen, C. A., & Schommer, J. C. (2012). Organizational factors influencing pharmacy practice change. Research in Social and Administrative Pharmacy, 8(4), 274-284. https://doi.org/10.1016/j.sapharm.2011.07.002 DOI: https://doi.org/10.1016/j.sapharm.2011.07.002
Frenzel, J. E. (2018). A Critical Analysis of the Entrepreneurial Orientation, Trait Emotional Intelligence, and Entrepreneurial Services Offered by Pharmacists in the Upper Midwest [Doctoral dissertation]. ProQuest Dissertations and Theses Global.
Gelderen, M. v. (2016). Entrepreneurial autonomy and its dynamics. Applied Psychology, 65(3), 541-567. https://doi.org/10.1111/apps.12066 DOI: https://doi.org/10.1111/apps.12066
Giachetti, C. (2016). Competing in emerging markets: Performance implications of competitive aggressiveness. Management International Review, 56(3), 325-352. https://doi.org/10.1007/s11575-015-0263-6 DOI: https://doi.org/10.1007/s11575-015-0263-6
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Prentice-Hall, Inc. https://www.scirp.org/(S(351jmbntvnsjt1aadkposzje))/reference/References Papers.aspx?ReferenceID=2336013&page_id=0.5917653041289754
Harrison, C., Paul, S., & Burnard, K. (2016). Entrepreneurial leadership in retail pharmacy: Developing economy perspective. Journal of Workplace Learning, 28(3), 150-167. https://doi.org/10.1108/jwl-01-2015-0004 DOI: https://doi.org/10.1108/JWL-01-2015-0004
Hernández-Linares, R., Kellermanns, F. W., López-Fernández, M. C., & Sarkar, S. (2019). The effect of socioemotional wealth on the relationship between entrepreneurial orientation and family business performance. BRQ Business Research Quarterly. https://doi.org/10.1016/j.brq.2019.03.002 DOI: https://doi.org/10.1016/j.brq.2019.03.002
Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661. https://doi.org/10.1016/j.indmarman.2006.04.003 DOI: https://doi.org/10.1016/j.indmarman.2006.04.003
Jambulingam, T., Kathuria, R., & Doucette, W. R. (2005). Entrepreneurial orientation as a basis for classification within a service industry: The case of retail pharmacy industry. Journal of Operations Management, 23(1), 23-42. https://doi.org/10.1016/j.jom.2004.09.003 DOI: https://doi.org/10.1016/j.jom.2004.09.003
Jia, J., Wang, G., Zhao, X., & Yu, X. (2014). Exploring the relationship between entrepreneurial orientation and corporate performance. Nankai Business Review International, 5(3), 326-344. https://doi.org/10.1108/nbri-05-2014-0024 DOI: https://doi.org/10.1108/NBRI-05-2014-0024
Judge, G. G., Griffiths, W. E., Hill, R. C. Lutkepohl, H. & Lee, T. (1985). The Theory and Practice of Econometrics, (2nd ed.). New York: John Wiley and Sons.
Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika, 39(1), 31-36. https://doi.org/10.1007/bf02291575 DOI: https://doi.org/10.1007/BF02291575
Kantur, D. (2016). Strategic entrepreneurship: Mediating the entrepreneurial orientation-performance link. Management Decision, 54(1), 24-43. https://doi.org/10.1108/md-11-2014-0660 DOI: https://doi.org/10.1108/MD-11-2014-0660
Keh, H. T., Der Foo, M., & Lim, B. C. (2002). Opportunity evaluation under risky conditions: The cognitive processes of entrepreneurs. Entrepreneurship Theory and Practice, 27(2), 125-148. https://doi.org/10.1111/1540-8520.00003 DOI: https://doi.org/10.1111/1540-8520.00003
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. https://doi.org/10.5465/amr.1996.9602161568 DOI: https://doi.org/10.5465/amr.1996.9602161568
Macko, A., & Tyszka, T. (2009). Entrepreneurship and risk taking. Applied Psychology, 58(3), 469-487. https://doi.org/10.1111/j.1464-0597.2009.00402.x DOI: https://doi.org/10.1111/j.1464-0597.2009.00402.x
Mattingly, T. J., Mullins, C. D., Melendez, D. R., Boyden, K., & Eddington, N. D. (2019). A systematic review of entrepreneurship in pharmacy practice and education. American Journal of Pharmaceutical Education, 83(3), 7233. https://doi.org/10.5688/ajpe7233 DOI: https://doi.org/10.5688/ajpe7233
Mohamed, N. A. (2018). Entrepreneurial Orientation and Small and Medium Enterprises Performance in Somalia. Jour of Adv Research in Dynamical & Control Systems, 10(6), 116-122. https://www.researchgate.net/publication/337137474_Entrepreneurial_Orientation_and_Small_and_Medium_Enterprises_Performance_in_Somalia
Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15-23. https://doi.org/10.1016/0148-2963(95)00159-x DOI: https://doi.org/10.1016/0148-2963(95)00159-X
Naldi, L., Nordqvist, M., Sjöberg, K., & Wiklund, J. (2007). Entrepreneurial orientation, risk taking, and performance in family firms. Family Business Review, 20(1), 33-47. https://doi.org/10.1111/j.1741-6248.2007.00082.x DOI: https://doi.org/10.1111/j.1741-6248.2007.00082.x
Nobrega, D. (2012). An assessment of the entrepreneurial orientation of pharmacists in Gauteng [Doctoral dissertation]. http://repository.nwu.ac.za/bitstream/handle/10394/8678/De_Nobrega_C.pdf?sequence=1&isAllowed=y
Oly Ndubisi, N., & Iftikhar, K. (2012). Relationship between entrepreneurship, innovation and performance. Journal of Research in Marketing and Entrepreneurship, 14(2), 214-236. https://doi.org/10.1108/14715201211271429 DOI: https://doi.org/10.1108/14715201211271429
Oni, E. O. (2012). The relevance of entrepreneurial proactiveness on business performance: Nigerian companies experience. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(835), 1-17. https://www.arabianjbmr.com/pdfs/KD_VOL_1_6/7.pdf
Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761-787. https://doi.org/10.1111/j.1540-6520.2009.00308.x DOI: https://doi.org/10.1111/j.1540-6520.2009.00308.x
Salavou, H. (2004). The concept of innovativeness: Should we need to focus? European Journal of Innovation Management, 7(1), 33-44. https://doi.org/10.1108/14601060410515628 DOI: https://doi.org/10.1108/14601060410515628
Schmidt, R. Ä., & Pioch, E. A. (2005). Community pharmacies under pressure – can branding help? International Journal of Retail & Distribution Management, 33(7), 494-504. https://doi.org/10.1108/09590550510605569 DOI: https://doi.org/10.1108/09590550510605569
Shan, P., Song, M., & Ju, X. (2016). Entrepreneurial orientation and performance: Is innovation speed a missing link? Journal of Business Research, 69(2), 683-690. https://doi.org/10.1016/j.jbusres.2015.08.032 DOI: https://doi.org/10.1016/j.jbusres.2015.08.032
Smith, B., & Jambulingam, T. (2018). Entrepreneurial orientation. International Journal of Pharmaceutical and Healthcare Marketing, 12(2), 158-180. https://doi.org/10.1108/ijphm-07-2017-0038 DOI: https://doi.org/10.1108/IJPHM-07-2017-0038
Wang, Y., & Poutziouris, P. (2010). Entrepreneurial risk taking: Empirical evidence from UK family firms. International Journal of Entrepreneurial Behavior & Research, 16(5), 370-388. https://doi.org/10.1108/13552551011071841 DOI: https://doi.org/10.1108/13552551011071841