Exploratory Factor Analysis of Entrepreneurial Orientation among Small and Medium Scale Enterprises in Osun State, Nigeria
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Date
2024
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Publisher
RUN JOURNAL OF MANAGEMENT
Abstract
Exploratory Factor Analysis (EFA) is required to show the correct items for
usage in a research instrument. Thus, this study developed and validated an
instrument of entrepreneurial orientation through exploratory factor analysis
particularly in the context of Small and Medium Enterprises (SMEs) in Osun
State Nigeria. The study examined innovativeness, pro-activeness, risk-taking,
resource leveraging, autonomy and competitive aggressiveness as the core
dimensions to measure entrepreneurial orientation. A questionnaire covering
the six dimensions of entrepreneurial orientation was developed. This study
adopted a multi stage sampling method, while quantitative data was collected
from 312 out of the 340 selected Small and Medium scale Enterprises across
Osun States, Nigeria. Based on the results of exploratory factor analysis, four
factors were extracted and the factor represents; innovativeness, pro-activeness,
resource leveraging, and competitive aggressiveness. Based on the findings, it
was concluded that the four factors extracted play significant roles in the
sustainable management of SMEs, hence, entrepreneurs should give utmost
attention to them as entrepreneurial orientation is more relevant today to
successfully run SMEs especially in the study area.
Keywords: Entrepreneurial orientation, SMEs, Resource leveraging,
Exploratory factor analysis, Competitive aggressiveness