ENTREPRENEURIAL ORIENTATION, STRATEGIC ORIENTATION AND PERFORMANCE OF SMALL FAMILY FIRMS IN THE KUMASI METROPOLIS

Abstract

Small family firms form the majority of small enterprises in the Ghanaian economy, however, little is known about the entrepreneurial orientation, strategic orientation and performance of these firms. Using small family firms from the Kumasi Metropolis and employing area sampling, 250 firms were selected for this study. Structural Equation Modeling, utilizing the Partial Least Squares (PLS) approach was used to test the hypotheses formulated in the theoretical framework. The results revealed that entrepreneurial orientation is not associated with firm’s performance but positively related to strategic orientation, whilst strategic orientation also influences firm performance positively. In addition, strategic orientation did not moderate the relationship between entrepreneurial orientation and firm performance. It is recommended that, to be able to beat the competition and survive in turbulent environments, small family firms in the Kumasi Metropolis must be proactive and innovative in the management of their businesses.