Entrepreneurial Orientation and Market Share of Selected Quoted Consumer Goods Manufacturing Companies in Nigeria

  • Okusanya, Adedoyin O. Doctoral Student, Department of Business Administration and Marketing, Babcock University, Ilishan Remo, Ogun State, NIGERIA
  • Akpa, Victoria O. Lecturer, Department of Business Administration and Marketing, Babcock University, Ilishan Remo, Ogun State, NIGERIA
  • Akinlabi. Babatunde H. Lecturer, Department of Business Administration and Marketing, Babcock University, Ilishan Remo, Ogun State, NIGERIA
Keywords: Entrepreneurial Orientation, Market Share, Consumer Goods Companies, Nigeria

Abstract

Firm performance is fundamental to businesses considering its role in assisting organisations to realize their goals and achieve successes. Consumer goods manufacturing industry in Nigeria are experiencing decline in performance like profitability, market share, sales growth, competitive advantage, and productivity resulting from poor application of entrepreneurial orientation measures. This study examined the interaction between entrepreneurial orientation and market share of selected quoted consumer goods manufacturing companies in Nigeria.The study adopted cross sectional survey research design. The population of the study was 1,551of twelve (12) quoted consumer goods manufacturing companies in Nigeria. Total enumeration was used to sample the entire population. A self-developed structured and validated questionnaire was used for data collection. The Cronbach’s alpha ranges between 0.721 and 0.892. The response rate was 90.5%. Data were analyzed using descriptive and inferential statistics (Multiple and Hierarchical regression analysis).Findings revealed that entrepreneurial orientation components had significant influence on market share of selected quoted consumer goods companies in Nigeria (Adj. R2 = 0.791; F (5,441) = 339.129, p= 0.000). The study concluded that  entrepreneurial orientation (innovativeness, competitive aggressiveness, proactiveness, risk-taking and planning flexibility) had significant effect on market share of selected quoted consumer goods companies in Nigeria and recommended that managers of selected quoted consumer goods manufacturing companies should practice entrepreneurial orientation ideologies to be able to be proactive and competitive enough to further boost the market portion of quoted consumer goods companies.

Downloads

Download data is not yet available.

References

Adefulu, A. D., Asikhia, O. U., & Aroyeun, T. F. (2018). The effect of pro-activeness on growth of selected small and medium scale enterprises in Ogun State Nigeria. IOSR Journal of Business and Management, 20(12), 14-21.

Adegbuyi, A. A., Oladele, P., Iyiola, O. O., Adegbuyi, O. A., Ogunnaike, O. O., Ibidunni, A. S., & Fadeyi, O. (2018). Assessing the influence of entrepreneurial orientation on small and medium enterprises’ performance. International Journal of Entrepreneurship, 22(4), 1-7

Adisa, M. K., Adeoye, A. O., & Okunbanjo, O. I. (2016). The impact of entrepreneurship orientation on entrepreneurs compensation in Nigeria. International Journal of Economics, Business and Management Studies, 3(3), 102-116.

Aigboje, P. O. (2018). Competitive aggressiveness and organizational profitability of hotels in Port Harcourt, Nigeria. International Journal of Social Sciences and Management Research, 4(5), 37-44.

Anlesinya, A., Eshun, P., & Bonuedi, A. A. (2015). Entrepreneurial orientation dimensions and profitability nexus: Evidence from micro enterprises in the retail sector in a developing country. International Journal of Small Business and Entrepreneurship Research, 3(7), 79-87.

Armstrong, S. & Greene, K. C. (2007). Competitor-oriented objectives: The myth of market share. International Journal of Business, 12(1), 116–134.

Aziz, R. A., Mahmood, R., Tajudin, A., & Abdullah, M. H. (2014). The relationship between entrepreneurial orientation and business performance of SMEs in Malaysia. International Journal of Management Excellence, 2(3), 221-226.

Bass, B. (2015). Examples of organizations that use proactive stances. Available at: http://smallbusiness.chron.com.

Bature, S. W., Sallehuddin, M. R., Rosli, N. A., & Saad, S. (2018). Proactiveness, innovativeness and firm performance: the mediating role of organizational capability. Academy of Strategic Management Journal, 17(5), 1-14.

Bran, A. & Vaidis, D. (2019). Choose your own risks: measuring risk-taking through an interactive novel. Laboratoire de psychologie sociale, université Paris descartes, Paris, France.

Brockman, P., Lee, H. S. G., & Salas, J. M. (2016). Determinants of CEO compensation: Generalist–specialist versus insider–outsider attributes. Journal of Corporate Finance, 39, 53–77.

Castrogiovanni, G. J., Urbano, D., & Loras, J. (2011). Linking corporate entrepreneurship and human resource management in SMEs. International Journal of Manpower, 32(1), 34-47.

Darmon, R. Y., Duclos-Gosselin, L., & Rigaux-Bricmont, B. (2013). a measure of dynamic market performance. A measureof dynamic.American Journal of Industrial and Business Management, 3(2), 164–177.

Deloitte Report. (2020). Available at: https://www2.deloitte.com/by/en/pages/consumer-business/solutions/food-beverage.html.

Egbunike, C. F. & Okerekeoti, C. U. (2018). Macroeconomic factors, firm characteristics and financial performance. Asian Journal of Accounting Research, 4(16), 55-62.

Eggers, F., Kraus, S., Hughes, M., Laraway, S., & Snycerski, S. (2013). Implications of customer and entrepreneurial orientations for SME growth. Management Decision, 4(8), 12-25.

Ejdys, J. (2016). Entrepreneurial orientation vs. innovativeness of small and medium size enterprises. Journal of Engineering, Project, and Production Management, 6(1), 13-24.

Elumah, L. O., Shobayo, P. B., & Akinleye, D. B. (2016). Impact of entrepreneurial orientation and entrepreneurial management on firm growth: Evidence from Nigeria manufacturing industry. In: Conference Paper, University of Professional Studies, Accra, Ghana.

Etim, J. J., Adabu, M.U., & Ogar, C.A. (2017). Influence of entrepreneurial orientation as survival strategy for small and medium enterprises: The Nigeria experience. International Journal of Economics, Commerce and Management, 2(2), 502-518.

Farris, P. W., Bendle, N., Pfeifer, P. E., & Reibstein, D. (2010). Marketing metrics: The definitive guide to measuring marketing performance. Pearson Education.

Fink, S. & Benz, F. (2019). Flexibility planning in global inbound logistics. Procedia CIRP, 79, 415-420.

Gautam, R. (2016). The determinants of banks liquidity: Empirical evidence on Nepalese commercial banks. Journal of Interdisciplinary Studies, 2(2), 69-78.

Hamid, N. A. & Tasmin, R. (2013). The relationship of business innovation capabilities and technology innovation capabilities on SME organization performance: A conceptual framework. Economics and Business, 4(4), 65-78.

Hernández-Sánchez, B. R., Cardella, G. M., & Sánchez-García, J. C. (2020). Psychological Factors that Lessen the Impact of COVID-19 on the Self-Employment Intention of Business Administration and Economics’ Students from Latin America. International Journal of Environmental Research and Public Health, 17(15), 52-93.

Hughes, M. & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661.

Hughes, M., Eggers, F., Kraus, S., & Hughes, P. (2015). The relevance of slack resource availability and networking effectiveness for entrepreneurial orientation. International Journal of Entrepreneurship and Small Business, 26(1), 116-138.

Javad, M. Y., Alireza, K., & Yaghoob, M. (2015). Organizational Entrepreneurship and its Impact on the Performance of Governmental Organizations in the City of Mashhad. Procedia-Social and Behavioral Sciences, 169(20), 75-87.

Jonsson, D. (2007). Flexibility, stability and related con-cepts. In Furĺker, B., Hĺkansson, K. & Karlsson, J. (Eds.), Flexibility and stability in working life. Hampshire: Palgrave Macmillan.

Keh, H. T., Nguyen, T. T. M., & Ng, H. P. (2007). The effects of entrepreneurial orientation and marketing information on the performance of SMEs. Journal of business venturing, 22(4), 592-611.

Ketchen, D. & Short, J. (2012). Strategic management: Evaluation and execution. New York: Creative Common.

Kiveu, M. N., Namusonge, M., & Muathe, S. (2019). Effect of innovation on firm competitiveness: the case of manufacturing SMEs in Nairobi County, Kenya. International Journal of Business Innovation and Research, 18(3), 307-327.

Kozjek, T. & Ferjan, M. (2015). Organizational flexibility, employee security, and organizational efficiency – A case study of Slovenian public and private sector organizations. Organizacija, 48(1), 1-20.

Kraus, S., Rigtering, C., Hughes, M., & Hosman, F. (2016). Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands. Rev Manag Sci, 6(1), 161–182.

Kurgat, E. K., Weru, I., & Wata, D. (2020). Proactive risk assessment of vincristine use process in a teaching and referral hospital in Kenya and the implications. Journal of Oncology Pharmacy Practice, 26(3), 666-679.

Linyiru, B. M. & Ketyenya, R. P. (2017). Influence of competitive aggressiveness on performance of state corporations in Kenya. International Journal of Entrepreneurship, 2(1), 1-14.

Li, Y. H., Huang, J. W., & Tsai, M.T. (2010). Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial Marketing Management, 38(4), 440-449.

Manufacturing Association of Nigeria (MAN). (2019). Available at: https://www.manufacturersnigeria.org/ManInDailyNigerianNews.

Mkalama, B. W., Ndemo, B. E., & Maalu, J. K. (2018). The antecedents of innovativeness in small and medium manufacturing enterprises in Kenya: A critical review of literature. African Journal of Business Management, 12(17), 527-535.

Mwangi, E. & Wekesa, S. (2017). Influence of economic factors on organizational performance of airlines: A case study Kenya airways ltd. IOSR Journal of Humanities and Social Science, 22(5), 8-14.

Mwangi, M. M. & Ngugi, K. (2014). Influence of Entrepreneurial Orientation on Growth of Micro and Small Enterprises In Kerugoya, Kenya. European Journal of Business Management, 1(11), 417-438.

Mwangi, S. M. & Namusonge, M. J. (2014). Influence of innovation on small and medium Enterprise (SME) growth–A case of garment manufacturing Industries in Nakuru County. International Journal for Innovation Education and Research, 2(6), 101-107.

Muhonen, S. (2017). The profitability of competitive aggressiveness: The moderating effect of industry-related and organizational factors. A thesis submitted at Aalto University School of Business Department of Marketing.

Mukutu, J. K. (2017). Impact of corporate entrepreneurship strategy on growth of business organisations: A case of safaricomlimited. A Rresearch Project Proposal Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA).

Organisation for Economic Co-operation and Development (OECD). (2019). Available at: https://www.oecd.org/development/development-co-operation-report-20747721.htm.

Ojeleye, Y. C., Opusunju, M. I., & Abdullahi, A. I. (2020). Globalisation and performance of manufacturing sector in Nigeria. Journal of Accounting and Management, 3(1), 12-18.

Okangi, F. P. (2019). The impacts of entrepreneurial orientation on the profitability growth of construction firms in Tanzania. Journal of Global Entrepreneurship Research, 9(1), 14-31.

Okunbanjo, I. O., Adewale, O. M., & Akinsulire, O. H. (2016). Effect of entrepreneurs’ character on SMEs performance in Lagos State, Nigeria. Journal of Management and Science, 7(3), 17-26.

Olubiyi, T. O., Egwakhe, A. J., Amos, B., & Ajayi, A. A. (2019). Entrepreneurial Orientation and Firm Profitability: Evidence from Lagos State Nigeria. Entrepreneurial Orientation and Firm Profitability: Evidence from Lagos State Nigeria, 21(6), 42-54.

Omisakin, O., Nakhid, C., Littrell, R., & Verbitsky, J. (2016). Entrepreneurial orientation among migrants and small and medium enterprises. International Journal of Business and Management Review, 3(4), 7-22.

Özdemirci, A. (2011). Corporate entrepreneurship and strategy process: A performance based research on Istanbul market. Procedia-Social and Behavioral Sciences, 24, 611-626.

Paauwe, J., Guest, D., & Wright, P. (2013). HRM and performance: What do we know and where should we go. HRM and Performance: Achievements and Challenges, 1-13.

Reijonen, H., Tammi, T., & Saastamoinen, J. (2016). SMEs and public sector procurement: Does entrepreneurial orientation make a difference?. International Small Business Journal, 34(4), 468-486.

Schillo, R. S. (2011). Entrepreneurial orientation and company performance: can the academic literature guide managers?. Technology Innovation Management Review, 1(2), 43-58.

Shane S. & Venkataraman S. (2001). Entrepreneurship as a field of research. Academy of Management Review, 26(1), 13-16.

Sheu, J. B. (2017). Buyer behavior in quality dominated multi sourcing recyclable material procurement of green supply chains. Production and Operations Management, 25(3), 477-497.

Kozjek, T. & Ferjan, M. (2015). Organizational flexibility, employee security, and organizational efficiency – A case study of Slovenian public and private sector organizations. Organizacija, 48(1), 1-20.

Wachsen, E. & Blind, K. (2011). More flexibility for more innovation?. Working Paper 115, University of Am-sterdam. Retrieved 29. 08. 2020. Available at: http://www.uvaaias.net/uploaded_files/publications/WP115-Wachsen,Blind.pdf.

Wales, W. J. (2016). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3-15.

Wambugu, A. W., Gichira, R., Wanjau, K. N.,& Mungatu, J. (2015).The relationship between risk taking and performance of small and medium agro processing enterprises in Kenya. International Journal of Economics, Commerce and Management, 3(12), 441-455.

Wiklund, J. & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: A configurational approach. Journal of Business Venturing, 20(1), 71-91.

Published
2021-04-30
How to Cite
Okusanya, Adedoyin O., Akpa, Victoria O., & Akinlabi. Babatunde H. (2021). Entrepreneurial Orientation and Market Share of Selected Quoted Consumer Goods Manufacturing Companies in Nigeria. International Journal of Engineering and Management Research, 11(2), 64-74. https://doi.org/10.31033/ijemr.11.2.9