Moderator Role of Trust Ties and Environmental Dynamism in the Relationship of Entrepreneurial Orientation-Performance in a Developing Economy: A Study of B2B Relationships of SMEs in Malaysia
Author: Nur Nadirah Mohamad Ishaka & Tapas Mishrab
Abstract: Even though the relationship between entrepreneurial orientation and business performance is dependent on a variety of variables, previous academic research has revealed that there is a good association between EO and business performance. The RBV theory, the contingency theory, and the regulatory emphasis theory are used to explain how the various domains of inter- organizational trust relationships and external environmental dynamics interact to affect EO-business performance. These theories are utilised in conjunction with one another. A survey of 253 Malaysian small and medium-sized firms in the service sector finds that the positive moderating influence of inter-organizational cognitive- and affective-based trust marginally strengthens the EO-performance connection in dynamic market scenarios. This was discovered as a result of the findings of the study. The implications of the study are analysed, and so are potential avenues for further research.
Keywords: SMEs, entrepreneurial orientation, developing economy, trust ties, environmental
dynamism
