Authors :
Simasiku Mwiya Mufalali; John Moose; Edwin Bbenkele; Regina Muduli; Mukwalikuli Mundia; Jimmy Sikachelela; Jackson Sishumba
Volume/Issue :
Volume 11 - 2026, Issue 4 - April
Google Scholar :
https://tinyurl.com/yc35jdv9
Scribd :
https://tinyurl.com/456f3uc4
DOI :
https://doi.org/10.38124/ijisrt/26apr1645
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Abstract :
This study examines how individual dimensions of Entrepreneurial Orientation (EO) influence SME performance in
an emerging economy context, addressing the unresolved question of which EO dimensions matter, and why. Using data from
262 trading SMEs in Kabwe District, Zambia, the study employs hierarchical multiple regression with HC3 robust standard
errors, nonlinear modeling, and Shapley value decomposition to assess both statistical significance and relative importance of
EO dimensions. The results show that EO explains a substantial proportion of variance in performance (ΔR² = 0.302).
Innovativeness and autonomy emerge as the only statistically significant predictors, while proactiveness, risk-taking, and
competitive aggressiveness are not significant in net-effect models. However, relative importance analysis reveals that all EO
dimensions contribute meaningfully to explained variance, indicating divergence between coefficient significance and practical
importance. Additionally, risk-taking exhibits a significant inverted U-shaped relationship with performance, suggesting
optimal rather than linear effects. The study contributes by advancing a multidimensional and context-sensitive understanding
of EO, introducing a variance-based analytical approach, and providing empirical evidence from Zambia - an underrepresented
context in entrepreneurship research. The findings highlight the need to reconceptualize EO as a system of uneven strategic
contributions shaped by institutional and resource constraints.
Keywords :
Entrepreneurial Orientation; SME Performance; Variance Decomposition; Emerging Economies; Zambia.
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This study examines how individual dimensions of Entrepreneurial Orientation (EO) influence SME performance in
an emerging economy context, addressing the unresolved question of which EO dimensions matter, and why. Using data from
262 trading SMEs in Kabwe District, Zambia, the study employs hierarchical multiple regression with HC3 robust standard
errors, nonlinear modeling, and Shapley value decomposition to assess both statistical significance and relative importance of
EO dimensions. The results show that EO explains a substantial proportion of variance in performance (ΔR² = 0.302).
Innovativeness and autonomy emerge as the only statistically significant predictors, while proactiveness, risk-taking, and
competitive aggressiveness are not significant in net-effect models. However, relative importance analysis reveals that all EO
dimensions contribute meaningfully to explained variance, indicating divergence between coefficient significance and practical
importance. Additionally, risk-taking exhibits a significant inverted U-shaped relationship with performance, suggesting
optimal rather than linear effects. The study contributes by advancing a multidimensional and context-sensitive understanding
of EO, introducing a variance-based analytical approach, and providing empirical evidence from Zambia - an underrepresented
context in entrepreneurship research. The findings highlight the need to reconceptualize EO as a system of uneven strategic
contributions shaped by institutional and resource constraints.
Keywords :
Entrepreneurial Orientation; SME Performance; Variance Decomposition; Emerging Economies; Zambia.