Entrepreneurial orientation and business outcomes: Evidence from agro-dealers in Dodoma City, Tanzania

Abstract

Despite their vital role in the agricultural value chain, agro-dealers face challenges such as limited access to finance, market volatility, and risk aversion, which hinder their performance. This research addresses the gap in understanding how EO influences business outcomes for agro-dealers. This study examines the impact of five dimensions of Entrepreneurial Orientation (EO)—proactiveness, risk-taking, innovativeness, competitive aggressiveness, and autonomy—on the performance of agro-dealers in Dodoma City. Data were collected from 154 agro-dealers through random sampling, and the relationship between EO dimensions and business performance was analyzed using the multiple regression model. Findings reveal that proactiveness (β = 0.540), and risk-taking (β = 0.498) are the strongest predictors of performance, with risk-taking leading to a 2.637-unit increase in performance for each unit increase. Innovativeness (β = 0.561) also has a positive effect, while competitive aggressiveness (β = 0.513) moderately influences performance. Autonomy (β = 0.015) has no significant impact. The study highlights agro-dealers moderate ability to identify opportunities but their overall risk aversion and financial constraints that limit innovation. This study contributes to the literature by highlighting the role of EO dimensions in fostering the growth and sustainability of agro-dealers while providing policy recommendations to strengthen risk management strategies.