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The Entrepreneurial Orientation: Driving the Organizational and Financial Results of Mexican SMEs
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Author(s): Luis Enrique Valdez-Juárez (Instituto Tecnologico de Sonora, Mexico), Elva Alicia Ramos-Escobar (Instituto Tecnológico de Sonora, Mexico)and Edith Patricia Borboa-Álvarez (Instituto Tecnológico de Sonora, Mexico)
Copyright: 2019
Pages: 19
Source title:
Handbook of Research on Entrepreneurship, Innovation, and Internationalization
Source Author(s)/Editor(s): Nuno Miguel Teixeira (Center for Research in Business and Administration, School of Business Sciences, Polytechnic Institute of Setúbal, Portugal), Teresa Gomes da Costa (Polytechnic Institute of Setúbal, Portugal)and Inês Margarida Lisboa (Instituto Politécnico de Leiria, Portugal)
DOI: 10.4018/978-1-5225-8479-7.ch002
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Abstract
The purpose of this chapter is to analyze the opportunities for entrepreneurship, the behavior of the entrepreneurial orientation, and the orientation towards the market that is developed in the SME, and the effects which exert in the innovation and the profitability in the field of SMEs. The research is based on a sample of 1012 commercial, services, and industrial enterprises in the Northwest region of Mexico. The data collection was carried out during the period from September to December 2016, through a self-directed survey to the manager. The relations estimates have been tested through the Structural Equation System (Hervas-Oliver, Sempere-Ripoll, and Boronat-Moll) based on the variance with the PLS technique, supported by the software SmartPLS version 3.2.6. The results demonstrate that entrepreneurial orientation has a significant influence on innovation activities and on the profitability of SMEs. Also, the innovation has a significant positive influence on the profitability. In addition, market orientation shows significant and negative effects on the profitability of SMEs. For these types of companies, it is important that they focus their efforts on customers, the market and the main competitors. This investigation contributes to the development of the literature on entrepreneurial behavior and dynamic capabilities.
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