Central European Business Review 2020, 9(1):56-75 | DOI: 10.18267/j.cebr.229

Entrepreneurial Orientation, Synergy and Firm Performance in the Agribusiness Context: An Emerging Market Economy Perspective

Alba Kruja-Demneri1
1 Epoka University, Albania, akruja@epoka.edu.al

Entrepreneurship researchers have called for more investigation on the contribution of context in advancing entrepreneurship theory. The aim of the paper is to analyse the agribusiness enterprise performance by introducing collaborativeness as a dimension of entrepreneurial orientation. Agribusiness is a key regional sector representing a crucial ratio of employment, economic production. and future growth. Due to the sector`s importance and the many challenges it faces, the impact of a synergy approach entrepreneurial orientation model on agribusiness performance is tested.
Structural equation modelling is used to test data collected from 120 agribusinesses located in Albania. Study results show collaborativeness as a dimension of the extracted entrepreneurial orientation model which provides a synergy between the actors of entrepreneurial value creation and has a significant direct contribution to enterprise performance.
Implications for Central European audience: Even though the results are related to agribusinesses in Albania, the findings of this research may advocate that to enhance enterprise performance in fragile sectors and emerging economy markets, the synergy among the value creation actors of the entrepreneurial process is a necessity. Besides the theoretical implications, this study has also some practical implications for policymakers, entrepreneurs and researchers.

Keywords: entrepreneurial orientation; synergy; performance; emerging market economy; agribusiness sector
JEL classification: L25, L26, Q13

Received: September 3, 2019; Revised: November 13, 2019; Accepted: December 5, 2019; Prepublished online: January 2, 2020; Published: March 31, 2020  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Kruja-Demneri, A. (2020). Entrepreneurial Orientation, Synergy and Firm Performance in the Agribusiness Context: An Emerging Market Economy Perspective. Central European Business Review, 9(1), 56-75. doi: 10.18267/j.cebr.229
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Acs, Z. J., Szerb, L., Autio, E., & Lloyd, A. (2017). Global Entrepreneurship Index 2018. The Global Entrepreneurship and Development Institute. https://thegedi.org/wp-content/uploads/dlm_uploads/2017/11/GEI-2018-1.pdf
    2. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modelling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411-423. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.540.4887&rep=rep1&type=pdf Go to original source...
    3. Asllani, A., Becherer, R., & Theodhori, Q. (2014). Developing a sustainable economy through entrepreneurship: The case of Albania. South-Eastern Europe Journal of Economics, 12(2), 243-262. http://www.asecu.gr/Seeje/issue23/issue23-asslani-becherer-theodhori.pdf
    4. Balderbos, R., Carree, M., & Lokshin, B. (2004). Cooperative R&D and firm performance. Research policy, 33(10), 1477-1492. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.470.9960&rep=rep1&type=pdf Go to original source...
    5. Baran, D., & Velickaite, R. (2008). Building the theoretical framework of entrepreneurship. 5th International Scientific Conference (pp. 16-17). Vilnius: Business and Management.
    6. Benecke, G., Schurink, W., & Roodt, G. (2007). Towards a substantive theory of synergy. SA Journal of Human Resource Management, 5(2), 9-19. https://doi.org/10.4102/sajhrm.v5i2.115 Go to original source...
    7. Bitzenis, A., & Nito, E. (2005). Obstacles to entrepreneurship in a transition business environment: the case of Albania. Journal of Small Business and Enterprise Development, 12(4), 564-578. https://doi.org/10.1108/14626000510628234 Go to original source...
    8. Burns, T., & Stalker, G. M. (1961). The management of innovation. Tavistock. https://www.jstor.org/stable/2230196
    9. Cai, L., Liu, Q., Deng, S., & Cao, D. (2014). Entrepreneurial orientation and external technology acquisition: an empirical test on performance of technology-based new ventures. Journal of Business Economics and Management, 15(3), 544-561. https://doi.org/10.3846/16111699.2013.770786 Go to original source...
    10. Cantillon, R. (1755). Essai sur la nature du commerce en general. https://www.libertyfund.org/books/essay-on-the-nature-of-trade-in-general
    11. Castell, A. M., Gregory, A. J., Hindle, G. A., James, M. E., & Ragsdell, G. (Eds.). (1999). Synergy matters: Working with systems in the 21st century. Springer Science & Business Media. https://www.springer.com/gp/book/9781475771824 Go to original source...
    12. Chaston, I., & Scott, G. J. (2012). Entrepreneurship and open innovation in an emerging economy. Management Decision, 50(7), 1161-1177. https://doi.org/10.1108/00251741211246941 Go to original source...
    13. Cooke, P., & Leydesdorff, L. (2006). Regional development in the knowledge-based economy: The construction of advantage. The Journal of Technology Transfer, 31, 5-15. https://doi.org/10.1007/s10961-005-5009-3 Go to original source...
    14. Covin, J. G., & Lumpkin, G. T. (2011). Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship Theory and Practice, 35(5), 855-872. https://doi.org/10.1111/j.1540-6520.2011.00482.x Go to original source...
    15. Covin, J. G., & Slevin, D. P. (1986). The development and testing of an organizational-level entrepreneurship scale. Frontiers of entrepreneurship research, 1(3), 628-639.
    16. Covin, J. G., & Slevin, D. P. (1988). The influence of organization structure on the utility of an entrepreneurial top management style. Journal of Management Studies, 25(3), 217-234. https://doi.org/10.1111/j.1467-6486.1988.tb00033.x Go to original source...
    17. Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87. https://doi.org/10.1002/smj.4250100107 Go to original source...
    18. Covin, J. G.; Slevin, D. P.; Schultz, R. L. (1994). Implementing Strategic Missions: Effective Strategic, structural, and Tactical Choices. Journal of Management Studies, 31(4), 481-503. https://doi.org/10.1111/j.1467-6486.1994.tb00627.x Go to original source...
    19. De Massis, A., Kotlar, J., Wright, M., & Kellermanns, F. W. (2017). Sector-based entrepreneurial capabilities and the promise of sector studies in entrepreneurship. Entrepreneurship Theory and Practice, 42(1), 3-23. https://doi.org/10.1177/1042258717740548 Go to original source...
    20. Drucker, P. F. (1985). Innovation and entrepreneurship. Harper & Row.
    21. EBRD. (2010). Agribusiness sector strategy. European Bank for Reconstruction and Development, EBRD. https://www.ebrd.com/downloads/policies/sector/agr_comm.pdf
    22. El Alaoui, A., Shopovski, J., Kvirkvaia, M., Alam, N., & Ofili, O. U. (2016). Obstacles to entrepreneurship in Albania, Georgia, Morocco, Nigeria, and Pakistan. European Scientific Journal, 12(34), 1-22. https://eujournal.org/index.php/esj/article/view/8533/8103 Go to original source...
    23. Ensign, P. C. (1998). Interrelationships and horizontal strategy to achieve synergy and competitive advantage in the diversified firm. Management Decision, 36(10), 657-668. https://www.deepdyve.com/lp/emerald-publishing/interrelationships-and-horizontal-strategy-to-achieve-synergy-and-MLPHnqjyn7?key=emerald Go to original source...
    24. Etkowitz, H., & Leydersdorff, L. (1995). The Triple Helix - University-Industry-Government Relations: A Laboratory for Knowledge Based Economic Development. EASST Review, 14(1), 14-19. https://ssrn.com/abstract=2480085
    25. Etzkowitz, H. (2002). The triple helix of university - industry - government: implications for policy and evaluation. Stockholm: Sweedish Institute for Studies in Education and Research. http://www.sister.nu/pdf/wp_11.pdf
    26. Fayolle, A. (2013). Forewords. In V. Ramadani, & R. C. Schneider, Entrepreneurship in the Balkans: Diversity, Support and Prospects (pp. ix-xi). Verlag Berlin Heidelberg: Springer. DOI: 10.1007/978-3-642-36577-5 Go to original source...
    27. Fitz-Koch, S., Nordqvist, M., Carter, S., & Hunter, E. (2017). Entrepreneurship in the agricultural sector: A literature review and future research opportunities. Entrepreneurship Theory and Practice, 42(1), 129-166. https://doi.org/10.1177/1042258717732958 Go to original source...
    28. Gecaj, M., Shahu, E. O., Imami, D., Skreli, E., & Jambor, A. (2018). Analysing the impact of subsidies in the Albanian agriculture sector-A comparative approach. 162nd EAAE Seminar The evaluation of new CAP instruments: Lessons learned and the road ahead. Budapest: EAAE. DOI: 10.22004/ag.econ.271964 Go to original source...
    29. George, G., Wood, D. R., & Khan, R. (2001). Networking Strategy of Boards: Implications for Small and Medium-Sized Enterprises. Entrepreneurship-and-Regional-Development, 13(3), 269-286. https://ink.library.smu.edu.sg/lkcsb_research/4637 Go to original source...
    30. Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186-192. DOI: 10.2307/3172650 Go to original source...
    31. Guerrero, M., & Urbano, D. (2010). The development of an entrepreneurial university. The journal of technology transfer, 37(1), 43-74. https://doi.org/10.1007/s10961-010-9171-x Go to original source...
    32. Guerrero, M., & Urbano, D. (2016). The impact of Triple Helix agents on entrepreneurial innovations' performance: An inside look at enterprises located in an emerging markets. Technological Forecasting and Social Change, 294-309. doi:http://dx.doi.org/10.1016/j.techfore.2016.06.015 Go to original source...
    33. Gupta, A. K., & Govindarajan, V. (1984). Business unit strategy, managerial characteristics, and business unit effectiveness at strategy implementation. Academy of Management Journal(27), 25-41. doi:10.2307/255955 Go to original source...
    34. Gupta, V., & Gupta, A. (2015). The Concept of Entrepreneurial Orientation. Foundations and Trends® in Entrepreneurship, 11(2), 55-137. http://dx.doi.org/10.1561/0300000054 Go to original source...
    35. Hattie, J. (1985). Methodology review: Assessing unidimensionality of tests and items. Applied Psychological Measurement, 9(June), 139-164. https://doi.org/10.1177/014662168500900204 Go to original source...
    36. Henson, S., & Cranfield, J. (2009). Building the political case for agro-industries and agribusiness in developing countries. In C. A. Silva, D. Baker, A. W. Shephard, C. Jenane, & S. Miranda-da-Cruz (Eds.), Agro-industries for development (pp. 10-45). CAB International & FAO. Food and Agriculture Organization of the United States. DOI: 10.1079/9781845935764.0010 Go to original source...
    37. 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. https://hdl.handle.net/2134/26377 Go to original source...
    38. Hult, G. T., Snow, C. C., & Kandemir, D. (2003). The Role of Entrepreneurship in Building Cultural Competitiveness in Different Organizational Types. Journal of Management, 29(3), 401-426. doi:10.1016/S0149-2063(03)00017-5 Go to original source...
    39. Iqbal, Z., & Malik, M. (2019). Entrepreneurial orientation and engagement of Pakistani small and medium enterprises in sustainable development practices: Mediating role of knowledge management. Business Strategy & Development, 192-203. https://doi.org/10.1002/bsd2.53 Go to original source...
    40. Jennings, P. D., Greenwood, R., Lounsbury, M. D., & Suddaby, R. (2013). Institutions, entrepreneurs, and communities: A special issue on entrepreneurship. Journal of Business Venturing, 28(1), 1-9. https://doi.org/10.1016/j.jbusvent.2012.07.001 Go to original source...
    41. Kantur, D. (2016). Strategic entrepreneurship: mediating the entrepreneurial orientation - performance link. Management Decision, 54(1), 24-43. DOI: 10.1108/MD-11-2014-0660 Go to original source...
    42. Keh, H. T., Nguyen, M. T., & Ng, P. H. (2007). The Effects of Entrepreneurial Orientation and Marketing Information on the Performance of SMEs. Journal of Business Venturing, 22(4), 592-611. doi:10.1016/j.jbusvent.2006.05.003 Go to original source...
    43. Kelley, D., Bosma, N. S., & Amoros, J. E. (2011). Global entrepreneurship monitor: 2010 global report. GEM. https://entreprenorskapsforum.se/wp-content/uploads/2011/02/GEM-2010-Global-Report.pdf
    44. Knight, G. A. (1997). Cross-cultural reliability and validity of a scale to measure firm entrepreneurial orientation. Journal of Business Venturing(12), 213-225. https://doi.org/10.1016/S0883-9026(96)00065-1 Go to original source...
    45. Kruja, A. D. (2013a). Entrepreneurship and knowledge-based economies. Revista Românească pentru Educație Multidimensională, 5(1), 7-17. http://revistaromaneasca.ro/?p=838 Go to original source...
    46. Kruja, A. D. (2013b). The contribution of SMEs to the economic growth (Case of Albania). EuroEconomica, 32(1), 55-67. http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/1622/1533
    47. Kruja, A. D. (2019). Synergic individual entrepreneurial orientation of university students: A new measurement model. In S. R. Nair, & J. M. Saiz-Alvarez (Eds.), Handbook of Research on Ethics, Entrepreneurship, and Governance in Higher Education (pp. 371-397). IGI Global. DOI: 10.4018/978-1-5225-5837-8.ch017 Go to original source...
    48. Kume, A., Kume , V., & Shahini, B. (2013). Entrepreneurial characteristics amongst university students in Albania. European Scientific Journal, 9(16), 206-225. https://eujournal.org/index.php/esj/article/view/1144
    49. Lewrick, M., Omar, M., Raeside, R., & Sailer, K. (2011). Education for entrepreneurship and innovation: `Management capabilities for sustainable growth and success. World Journal of Entrepreneurship, Management and Sustainable Development, 6(1/2), 1-18. https://www.academia.edu/26703488/Education_for_entrepreneurship_and_innovation_Management_capabilities_for_sustainable_growth_and_success_ Go to original source...
    50. Leydesdorff, L. (2018). Synergy in Knowledge-Based Innovation Systems at National and Regional Levels: The Triple-Helix Model and the Fourth Industrial Revolution. Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 2. RePEc:gam:joitmc:v:4:y:2018:i:2:p:16-:d:146606 Go to original source...
    51. Leydesdorff, L., & Meyer, M. (2006). Triple Helix indicators of knowledge-based innovation systems: Introduction to the special issue. Research Policy, 35(10), 1441-1449. https://www.leydesdorff.net/rp06th5/rp06th5.pdf Go to original source...
    52. Leydesdorff, L., Etzkowitz, H., Ivanova, I., & Meyer, M. (2017). The measurement of synergy in innovation systems: Redundancy generation in a triple helix of university-industry-government relations. Heidelberg: Springer. RePEc:sru:ssewps:2017-08 Go to original source...
    53. Li, Y. H., Huang, J. W., & Tsai, M. T. (2009). Entrepreneurial Orientation and Firm Performance: The Role of Knowledge Creation Process. Industrial Marketing Management, 38(4), 440-449. https://doi.org/10.1016/j.indmarman.2008.02.004 Go to original source...
    54. Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172. DOI: 10.2307/258632 Go to original source...
    55. Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451. http://www.sciencedirect.com/science/article/pii/S0883-9026(00)00048-3 Go to original source...
    56. Marshall, A. (1930). Principles of economics. London: Macmillan (first edition 1890). http://www.library.fa.ru/files/Marshall-Principles.pdf
    57. McClelland, D. C. (1961). The achieving society. NJ: Van Nostrand: Princeton. https://www.worldcat.org/title/achieving-society/oclc/230046 Go to original source...
    58. Mhlanga, N. (2010). Private sector agribusiness investment in sub-saharan africa. Food and Agriculture Organization of the United Nations (FAO). http://www.fao.org/3/k7443e/k7443e.pdf
    59. Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791. https://doi.org/10.1287/mnsc.29.7.770 Go to original source...
    60. Miller, D. (2011). Miller (1983) revisited: A reflection on EO research and some suggestions for the future. Entrepreneurship Theory and Practice, 35(5), 873-894. https://doi.org/10.1111/j.1540-6520.2011.00457.x Go to original source...
    61. Miller, D., & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms: two models of strategic momentum. Strategic Management Journal(3), 1-25. https://doi.org/10.1002/smj.4250030102 Go to original source...
    62. Montensen, P. S., & Bloch, C. W. (2005). Oslo Manual-Guidelines for Collecting and Interpreting Innovation Data: Proposed Guidelines for Collecting and Interpreting Innovation Data. Organisation for Economic Cooporation and Development, OECD. http://www.oecd.org/science/inno/2367614.pdf
    63. Nunnally, J. C. (1978). Psychometric Theory (2 ed.). New York: McGraw-Hill.
    64. O`Brien, T., Nedelkoska, L., & Frasheri, E. (2017). What is the Binding Constraint to Growth in Albania. Center for International Development at Harvard University. http://www.tinyurl.com/y5ld58ot
    65. Pearce, J. W.; Carland, J. W. (1996). Intrapreneurship and Innovation in Manufacturing Firms: An Empirical Study of Performance Implications. Academy of Entrepreneurship Journal, 1(2), 87-96. DOI: 10.1142/S0218495801000092 Go to original source...
    66. Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787. https://doi.org/10.1111/j.1540-6520.2009.00308.x Go to original source...
    67. Rinkel, B. K., Cormier, C., Zheng, J. L., & Saikat, M. S. (2016). Exploring Albania's Entrepreneurial Ecosystem. WPI. https://digitalcommons.wpi.edu/iqp-all/445
    68. Schumpeter, J. (1911/34). The theory of economic development. Cambridge, Ma: Harvard University Press. https://www.hup.harvard.edu/catalog.php?isbn=9780674879904
    69. Schwab, K. (2018). The global competitiveness report 2018-2019. World Economic Forum. http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf
    70. Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226. https://www.jstor.org/stable/259271 Go to original source...
    71. Slater, S. F., & Narver, J. C. (2000). The Positive Effect of a Market Orientation on Business Profitability: A BalancedReplication. Journal of Business Research, 48(1), 69-73. http://www.sciencedirect.com/science/article/pii/S0148-2963(98)00077-0 Go to original source...
    72. Thomas, A. S., & Mueller, S. L. (2000). A case for comparative entrepreneurship: Assessing the relevance of culture. Journal of International Business Studies, 31(2), 287-302. https://www.jstor.org/stable/155638 Go to original source...
    73. Urban, B. (2012). The effect of pro-entrepreneurship architecture on organizational outcomes. Journal of Business Economics and Management, 13(3), 518-545. https://doi.org/10.3846/16111699.2011.620153 Go to original source...
    74. Volk, T. (2010). Agriculture in the Western Balkan Countries (Vol. 57). Halle (Saale): IAMO. https://www.iamo.de/fileadmin/documents/sr_vol57.pdf
    75. Volk, T., Rednak, M., Erjavec, E., Rac, I., Zhllima, E., Gjeci, G., . . . Stevovic, M. (2019). Agricultural policy developments and EU approximation process in the Western Balkan countries. Publication Office of the European Union. DOI:10.2760/583399 Go to original source...
    76. Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium sized businesses. Strategic Management Journal, 1307-1314. https://doi.org/10.1002/smj.360 Go to original source...
    77. Wiklund, J., & Shepherd, D. (2005). Entrepreneurial Orientation and Small Business Performance: A Configurational Approach. Journal of Business Venturing, 20(1), 71-91. https://doi.org/10.1016/j.jbusvent.2004.01.001 Go to original source...
    78. Wiklund, J. (1999). The sustainability of the entrepreneurial orientation-performance relationship. Entrepreneurship Theory & Practice, 24(1), 37-48. https://doi.org/10.1177/104225879902400103 Go to original source...
    79. Xheneti, M., & Smallbone, D. (2008). The role of public policy in entrepreneurship development in post-socialist countries: A comparison of Albania and Estonia. EBS Review(24), 23-36. http://www.ebs.ee/file.php?21947
    80. Yiu, D. W., & Lau, C. (2008). Corporate entrepreneurship as resource capital configuration in emerging market firms. Entrepreneurship Theory and Practice, 32(1), 37-57. https://doi.org/10.1111/j.1540-6520.2007.00215.x Go to original source...
    81. Zahra, S. A., & Covin, J. G. (1995). Contextual infuences on the corporate entrepreneurship performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), 43-58. https://doi.org/10.1016/0883-9026(94)00004-E Go to original source...
    82. Zahra, Shaker A. (1991). Predictors and financial outcomes of corporate entrepreneurship: An exploratory study. Journal of Business Venturing, 6(4), 259-285. https://doi.org/10.1016/0883-9026(91)90019-A Go to original source...
    83. Zenelaj, B., & Kruja, A. (2017). Entrepreneurship intention of Albanian students: an evidence from computer engineering and business informatics programs. Academic Conference on Economics, Management and Marketing. Prague: AC-EMM.
    84. Ziegler, M., & Hagemann, D. (2015). Testing the unidimensionality of items: Pitfalls and loopholes. European Journal of Psychological Assessment, 31(4), 231-237. https://doi.org/10.1027/1015-5759/a000309 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content