STEPS in BUSINESS EXCELLENCE

The effect of entrepreneurial orientation on firm’s supply chain performance: The case of food sector in Jordan

Luay Jum’a

German Jordanian University (GJU), Department of Logistic sciences, Jordan

https://orcid.org/0000-0002-4400-4092

DOI: https://doi.org/10.61706/SBEXC12002

Keywords: Entrepreneurial Orientation, Supply Chain Management, Innovation, Supply Chain Performance, Jordan

---

Abstract

The objective of this study was to examine the impact of entrepreneurial orientation on the supply chain performance of firms operating within the food sector in Jordan. This study developed a theoretical framework for analyzing three key dimensions of entrepreneurial orientation: proactiveness, innovativeness, and risk-taking. The data collection process in the Jordanian food manufacturing sector involved a quantitative approach. A total of 192 respondents participated in the study, and the collected data was subsequently analyzed using SPSS software. The findings of the study indicate a significant positive impact on supply chain performance from two particular elements related to entrepreneurial orientation: innovativeness and risk-taking. Additionally, the study found that proactiveness had no significant impact on the performance of the supply chain. This study offers decision-makers seeking to establish a unique market position an opportunity to distinguish their supply chain operations by leveraging entrepreneurial orientation. Furthermore, this empirical study provides practical recommendations to organizations on enhancing various aspects related to proactiveness, innovativeness, and risk-taking. Firms with high entrepreneurial orientation excel in supply chain performance as they create customer-focused products, adapt to market changes, and maintain rigorous standards with suppliers and partners. This results in increased productivity, reduced distractions, and faster delivery. Moreover, the present study provides a theoretical contribution by proposing a framework that investigates the influence of three distinct types of entrepreneurial orientation on supply chain performance an area that has received limited attention in previous studies, particularly in the food sector.

---

References

Adel, H. M., & Younis, R. A. A. (2021). Interplay among blockchain technology adoption strategy, e-supply chain management diffusion, entrepreneurial orientation and human resources information system in banking. International Journal of Emerging Markets. Ahead-of-print. https://doi.org/10.1108/IJOEM-02-2021-0165

Afriyie, S., Du, J., & Ibn Musah, A. A. (2019). Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership. Journal of Global Entrepreneurship Research, 9, 1-25. https://doi.org/10.1186/s40497-019-0165-3

Al-Alawneh, R., Othman, M., & Zaid, A. A. (2023). Green HRM impact on environmental performance in higher education with mediating roles of management support and green culture. International Journal of Organizational Analysis. Ahead-of-print. https://doi.org/10.1108/IJOA-02-2023-3636

Aloulou, W. J. (2018). Examining entrepreneurial orientation’s dimensions–performance relationship in Saudi family businesses: Contingency role of family involvement in management. Journal of family business management, 8(2), 126-145. https://doi.org/10.1108/JFBM-02-2018-0007

Arunachalam, S., Ramaswami, S. N., Herrmann, P., & Walker, D. (2018). Innovation pathway to profitability: The role of entrepreneurial orientation and marketing capabilities. Journal of the Academy of Marketing Science, 46, 744-766. https://doi.org/10.1007/s11747-017-0574-1

Arzubiaga, U., Iturralde, T., Maseda, A., & Kotlar, J. (2018). Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors. International Entrepreneurship and Management Journal, 14, 217-244. https://doi.org/10.1007/s11365-017-0473-4

Baghizadeh, K., Ebadi, N., Zimon, D., & Jum’a, L. (2022). Using Four Metaheuristic Algorithms to Reduce Supplier Disruption Risk in a Mathematical Inventory Model for Supplying Spare Parts. Mathematics, 11(1), 42. https://doi.org/10.3390/math11010042

Charoensukmongkol, P. (2016). The interconnections between bribery, political network, government supports, and their consequences on export performance of small and medium enterprises in Thailand. Journal of International Entrepreneurship, 14(2). https://doi.org/10.1007/s10843-016-0164-1

Cho, Y. H., & Lee, J. H. (2018). Entrepreneurial orientation, entrepreneurial education and performance. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 124-134. https://doi.org/10.1108/APJIE-05-2018-0028

Covin, J. G., & Wales, W. J. (2012). The measurement of entrepreneurial orientation. Entrepreneurship theory and practice, 36(4), 677-702. https://doi.org/10.1111/j.1540-6520.2010.00432.x

Fairoz, F. M., Hirobumi, T., & Tanaka, Y. (2010). Entrepreneurial orientation and business performance of small and medium scale enterprises of Hambantota District Sri Lanka. Asian social science, 6(3), 34. https://doi.org/10.5539/ass.v6n3p34

Fuentelsaz, L., Maicas, J. P., & Montero, J. (2018). Entrepreneurs and innovation: The contingent role of institutional factors. International small business journal, 36(6), 686-711. https://doi.org/10.1177/0266242618766235

Gunawan, T., Jacob, J., & Duysters, G. (2016). Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country. International Entrepreneurship and Management Journal, 12, 575-599. https://doi.org/10.1007/s11365-014-0355-y

Hallikas, J., Immonen, M., & Brax, S. (2021). Digitalizing procurement: the impact of data analytics on supply chain performance. Supply Chain Management: An International Journal, 26(5), 629-646. https://doi.org/10.1108/SCM-05-2020-0201

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of management review, 9(2), 193-206. https://doi.org/10.2307/258434

Jum’a, L. (2023). The role of blockchain-enabled supply chain applications in improving supply chain performance: the case of Jordanian manufacturing sector. Management Research Review. Ahead-of-print. https://doi.org/10.1108/MRR-04-2022-0298

Jum’a, L., Ikram, M., Alkalha, Z., & Alaraj, M. (2022). Do companies adopt big data as determinants of sustainability: Evidence from manufacturing companies in Jordan. Global Journal of Flexible Systems Management, 23(4), 479-494. https://doi.org/10.1007/s40171-022-00313-0

Juma, L., & Kilani, S. (2022). Adoption enablers of big data analytics in supply chain management practices: The moderating role of innovation culture. Uncertain Supply Chain Management, 10(3), 711-720. https://doi.org/10.5267/j.uscm.2022.5.004

Jum’a, L., Zimon, D., & Madzik, P. (2023). Impact of big data technological and personal capabilities on sustainable performance on Jordanian manufacturing companies: the mediating role of innovation. Journal of Enterprise Information Management. Ahead-of-print. https://doi.org/10.1108/JEIM-09-2022-0323

Le, T. T., Vo, X. V., & Venkatesh, V. G. (2022). Role of green innovation and supply chain management in driving sustainable corporate performance. Journal of Cleaner Production, 374, 133875. https://doi.org/10.1016/j.jclepro.2022.133875

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

Niemand, T., Rigtering, J. C., Kallmünzer, A., Kraus, S., & Maalaoui, A. (2021). Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization. European Management Journal, 39(3), 317-326. https://doi.org/10.1016/j.emj.2020.04.008

Park, B. I., & Xiao, S. (2020). Is exploring dynamic capabilities important for the performance of emerging market firms? The moderating effects of entrepreneurial orientation and environmental dynamism. International Studies of Management & Organization, 50(1), 57-73. https://doi.org/10.1080/00208825.2019.1703378

Rachmawati, E., & Suroso, A. (2020). Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance. Journal of Family Business Management, 12(2), 214-236. https://doi.org/10.1108/JFBM-07-2020-0064

Raouf, M., Elsabbagh, D., & Wiebelt, M. (2020). Impact of COVID-19 on the Jordanian economy: Economic sectors, food systems, and households (Vol. 9). Intl Food Policy Res Inst. https://doi.org/10.2499/p15738coll2.134132

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

Rigtering, J. C., Eggers, F., Kraus, S., & Chang, M. L. (2017). Entrepreneurial orientation, strategic planning and firm performance: The impact of national cultures. European Journal of International Management, 11(3), 301-324. https://doi.org/10.1504/EJIM.2017.083872

Saeed, S., Yousafzai, S. Y., & Engelen, A. (2014). On cultural and macroeconomic contingencies of the entrepreneurial orientation–performance relationship. Entrepreneurship Theory and Practice, 38(2), 255-290. https://doi.org/10.1111/etap.12097

Saleh, M. W., Eleyan, D., & Maigoshi, Z. S. (2022). Moderating effect of CEO power on institutional ownership and performance. EuroMed Journal of Business. Ahead-of-print. https://doi.org/10.1108/EMJB-12-2021-0193

Saleh, M. W., Zaid, M. A., Shurafa, R., Maigoshi, Z. S., Mansour, M., & Zaid, A. (2021). Does board gender enhance Palestinian firm performance? The moderating role of corporate social responsibility. Corporate Governance: The International Journal of Business in Society, 21(4), 685-701. https://doi.org/10.1108/CG-08-2020-0325

Vaitoonkiat, E., & Charoensukmongkol, P. (2020). Interaction effect of entrepreneurial orientation and stakeholder orientation on the business performance of firms in the steel fabrication industry in Thailand. Journal of Entrepreneurship in Emerging Economies, 12(4), 453-473. https://doi.org/10.1108/JEEE-05-2019-0072

Wu, L., & Li, J. (2011). Perceived value of entrepreneurship: A study of the cognitive process of entrepreneurial career decision. Journal of Chinese Entrepreneurship, 3(2), 134-146. https://doi.org/10.1108/17561391111144564

Yosef, F. A., Jum’a, L., & Alatoom, M. (2023). Identifying and Categorizing Sustainable Supply Chain Practices Based on Triple Bottom Line Dimensions: Evaluation of Practice Implementation in the Cement Industry. Sustainability, 15(9), 7323. https://doi.org/10.3390/su15097323

Ziyadeh, M., Othman, M., & Zaid, A. (2023). Green Human Resources Management, Corporate Social Responsibility and Organisational Citizenship Behavior: A Conceptual Model. In From Industry 4.0 to Industry 5.0: Mapping the Transitions (pp. 497-502). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-28314-7_43