The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link

Abstract

Despite the increase market in catering industry by 37% per year, the number of SME-catering service firms is only 30.000, or only 5% from the total number of SME in 2016. From 30,000 registered catering service company, only 10% is an active business with annual growth rate (3%). In order to achieve competitive advantage and growth, firms will develop appropriate competitive strategy, strategy which directly relate to firm performance. The purpose of this paper is to develop a better understanding of the relationship between competitive strategy and firm performance in a different entrepreneurial orientation (EO) dimension. The statistical results revealed a) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between differentiation strategy and firm performance b) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between CL strategy and firm performance.