Effects of Employee Intrapreneurial Orientation on the Performance of Small Enterprises in the Sunyani Municipality, Ghana: The Moderating Role of Employee Commitment

Abstract

Researchers and practitioners continue to explore the drivers of firm performance. One relevant emerging research domain is the influence of employee intrapreneurial orientation on firm performance which has hitherto focused mainly on large enterprises in developed countries. Considering the critical role of small enterprises in national development and the numerous challenges that hinder their performance, this study sought to examine the effects of innovativeness, pro-activeness, risk taking propensity, autonomy, and competitive aggressiveness of employees on small enterprise performance in the Sunyani Municipality, Ghana and the possible moderating effect of employee commitment. The study adopted a quantitative research approach and a predictive research design. The convenience sampling technique was employed. Data were obtained through the administration of questionnaires using a sample size of 320 employees of small enterprises in the Sunyani Municipality. The results of structural equation modelling revealed that pro-activeness, risk-taking propensity, autonomy and competitive aggressiveness of employees had significant effects on the performance of small enterprises. Furthermore, employee commitment as a moderating variable has a significant effects on the relationship between pro-activeness and competitive aggressiveness of employees and small enterprise performance respectively. As a recommendation, small enterprise owners should reorganise their employees’ activities to include more intrapreneurial activities and further focus on various aspects of commitment among employees as it has a significant effect on employee intrapreneurial orientation and small enterprise performance.