Revisiting entrepreneurial orientation: A dimensional performance architecture in emerging market SMEs – evidence from Kabwe district, Zambia

Abstract

This study examined the influence of the five dimensions of entrepreneurial orientation (EO) – innovativeness, risk-taking, proactiveness, autonomy, and competitive aggressiveness – on the financial performance of trading small and medium enterprises (SMEs) in Kabwe District, Zambia. Guided by the Resource-Based View (RBV), the study conceptualised EO as a strategic internal capability that enhances firm competitiveness and performance. Using an explanatory cross-sectional research design, data were collected from 300 owner-managers of registered trading SMEs in Kabwe District, selected through simple random sampling from a population of approximately 1,200 SMEs. Data were gathered using structured questionnaires and analysed using descriptive and inferential statistical techniques, including multiple regression analysis. The findings revealed that risk-taking and proactiveness are significant predictors of SME performance, indicating that firms that engage in calculated risks and proactively pursue emerging opportunities achieve superior results. Conversely, innovativeness, autonomy, and competitive aggressiveness exhibited positive but statistically insignificant effects, suggesting that their influence may be indirect or context-dependent. These results highlight that the implementation and integration of EO dimensions, rather than their mere presence, are vital in enhancing performance. The study recommends that SMEs adopt strategic risk-taking, foster proactive market engagement, and leverage autonomy and innovativeness to reinforce adaptive and competitive behaviours. The research contributes to entrepreneurial management literature by providing empirical evidence from a developing-country context and offers practical insights for SME policy and strategy formulation in Zambia.