Entrepreneurial Orientation and Performance of Hospitality Industry in Akure, Nigeria

Abstract

The main purpose of the study is to investigate the effect of entrepreneurial orientation-dimension (innovativeness, proactiveness, competitive aggressiveness, risk- taking and autonomy) on the performance of hospitality industry in Akure, Nigeria. The study adopts quantitative methods by using survey questionnaire structure in 5- point Likert scale. 122 copies of questionnaire were administrated to the 122 owners of hotels and guest houses in the study area, out of which 108 copies were retrieved for analysis using correlation and regression technique. From the result of correlation coefficient, innovation and competitive aggressiveness were positively and significantly with performance of hospitality industry at 0.01 significant level. The result of regression analysis shows an R-square of 0.426, which indicated that 43% of change in firm performance was affected by independent variables. The results also indicates that three of the dimensions, namely innovativeness (β = 0.198, p –value = 0.000), proactiveness (β= 0.076 p- value = 0.010) and competitive aggressiveness (β = 0.191, p –value 0.000) were significantly and positively affect the performance of hospitality industry. Risk-taking (β = -0.095, p – value = 0.001) was significant but had negative effect on the performance of hospitality industry. However, autonomy (β = -0.101, p – value =0.091) was not have significant effect on the performance of the organisation. The study recommends that the three EO- dimensions (innovativeness, proactiveness and competitive aggressiveness that tends to be positive and significant influenced the performance of hospitality industry should be made the focal point of strategy for business growth and expansion.

Keywords: Entrepreneurial orientation, Hospitality industry, Performance, Akure, Nigeria

DOI: 10.7176/EJBM/11-2-07