Abstract: This study investigated the effect of Entrepreneurial orientation (EO) on product innovativeness in manufacturing SMEs. Using a cross sectional survey design with a sample size of 196, a standard multiple linear regression (MLR) was performed between product innovativeness as the dependent variable and proactiveness and risk-taking dimensions of EO, as independent variables. The results indicate that the predictors explained 22.9% of the variance (R2=.241, Adj R2 =0. 229), F (2,123) = 19.565, t = p < 0.01. Proactiveness (B = .368, t =2.934, p < .004 and risk taking (B = .221, t = 3.272, p = .001) positively and significantly contributed to predicting product innovativeness. It is concluded that proactiveness enhances SMEs’ potential to introduce new products featuring more differentiated characteristics for the market. Similarly, risk-taking enables SMEs to deliver new products of higher uniqueness that enables them surmount fierce competition. The researcher recommend that SME owner-managers should be proactive in seeking new product ideas and customer product information that will in turn enable them generate ideas on designing and manufacturing innovative products.
Keywords: Entrepreneurial Orientation (EO), Product Innovativeness, Performance, Small and Medium Enterprise (SME).
Title: Effect of Entrepreneurial Orientation on SMEs Product Innovativeness
Author: Gudda Patrick
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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