Entrepreneurial alertness and profitability of micro firms: The role of risk-taking

IF 2.1 Q2 ECONOMICS

Economics & Sociology Pub Date : 2021-12-01 DOI:10.14254/2071-789x.2021/14-4/6

H. Vu, Chijioke E. Nwachukwu

{"title":"Entrepreneurial alertness and profitability of micro firms: The role of risk-taking","authors":"H. Vu, Chijioke E. Nwachukwu","doi":"10.14254/2071-789x.2021/14-4/6","DOIUrl":null,"url":null,"abstract":". This study provides insights on entrepreneurial alertness (EA), risk-taking and profitability of micro-sized firms. The direct effects of entrepreneurial alertness on profitability, risk-taking on entrepreneurial alertness and the moderating mechanism of risk-taking are assessed. This research uses surveys completed by micro-sized ﬁrms in Ghana. Hypotheses were developed based on the literature review and were validated using data from 150 firms. It was observed that entrepreneurial alertness has significant influence on the profitability of microfirms. Similarly, risk-taking has a predictive impact on entrepreneurial alertness. The connection between entrepreneurial alertness and profitability is not enhanced when risk-taking is added as a moderator. Theoretically, our paper adds to the entrepreneurship literature by using the contingency theory to explain the moderating impact of risk-taking on the entrepreneurial alertness-profitability relationship. Further, the study informs entrepreneurs in developing countries who operate in challenging and volatile business environments of the importance of alertness and risk-taking to profitability.","PeriodicalId":51663,"journal":{"name":"Economics & Sociology","volume":null,"pages":null},"PeriodicalIF":2.1000,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"4","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics & Sociology","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.14254/2071-789x.2021/14-4/6","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 4

Abstract

. This study provides insights on entrepreneurial alertness (EA), risk-taking and profitability of micro-sized firms. The direct effects of entrepreneurial alertness on profitability, risk-taking on entrepreneurial alertness and the moderating mechanism of risk-taking are assessed. This research uses surveys completed by micro-sized ﬁrms in Ghana. Hypotheses were developed based on the literature review and were validated using data from 150 firms. It was observed that entrepreneurial alertness has significant influence on the profitability of microfirms. Similarly, risk-taking has a predictive impact on entrepreneurial alertness. The connection between entrepreneurial alertness and profitability is not enhanced when risk-taking is added as a moderator. Theoretically, our paper adds to the entrepreneurship literature by using the contingency theory to explain the moderating impact of risk-taking on the entrepreneurial alertness-profitability relationship. Further, the study informs entrepreneurs in developing countries who operate in challenging and volatile business environments of the importance of alertness and risk-taking to profitability.

查看原文本刊更多论文

创业警觉性与微型企业盈利:风险承担的作用

．本研究对微型企业的创业警觉性、风险承担和盈利能力提供了新的见解。评估了创业警觉性对盈利能力的直接影响、风险承担对创业警觉性的直接影响以及风险承担的调节机制。本研究使用加纳微型企业完成的调查。假设是在文献综述的基础上提出的，并使用来自150家公司的数据进行验证。据观察，创业警觉性对微型企业的盈利能力有重大影响。同样，冒险对企业家的警觉性也有预测作用。当风险承担作为调节因素加入时，企业家警觉性与盈利能力之间的联系并没有增强。在理论上，本文运用权变理论解释了风险承担对创业警觉性-盈利关系的调节作用，为创业文献提供了补充。此外，这项研究还使发展中国家在具有挑战性和不稳定的商业环境中经营的企业家了解警惕和冒险对盈利的重要性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Economics & Sociology ECONOMICS-

CiteScore

5.40

自引率

6.70%

发文量

审稿时长

24 weeks

期刊介绍： Economics and Sociology (ISSN 2306-3459 Online, ISSN 2071-789X Print) is a quarterly international academic open access journal published by Centre of Sociological Research in co-operation with University of Szczecin (Poland), Mykolas Romeris University (Lithuania), Dubcek University of Trencín, Faculty of Social and Economic Relations, (Slovak Republic) and University of Entrepreneurship and Law, (Czech Republic). The general topical framework of our publication include (but is not limited to): advancing socio-economic analysis of societies and economies, institutions and organizations, social groups, networks and relationships.[...] We welcome articles written by professional scholars and practitioners in: economic studies and philosophy of economics, political sciences and political economy, research in history of economics and sociological phenomena, sociology and gender studies, economic and social issues of education, socio-economic and institutional issues in environmental management, business administration and management of SMEs, state governance and socio-economic implications, economic and sociological development of the NGO sector, cultural sociology, urban and rural sociology and demography, migration studies, international issues in business risk and state security, economics of welfare.