International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


Role of Organizational Strategy and Entrepreneurial Orientation on Organizational Effectiveness

Author(s): Sunday Samson Babalola, Chiyem Lucky Nwanzu

Effective functioning is the ultimate goal of every organization and this gives justification for the intense empirical interest to identify and understand the predictors of organizational effectiveness. This study examined the role of organizational strategy and entrepreneurial orientation on organizational effectiveness. The design was cross-sectional as data were collected at one point in time, and the instrument was self-administered questionnaires. One hundred and ninety-four participants were sampled from twenty-two privately-owned organizations. The respondent sample comprises 55% males and 45% females. Simple regression analysis revealed that organizational strategy and entrepreneurial orientation have positive predictive relationship with organizational effectiveness; however, for entrepreneurial orientation the relationship was not statistically significant. Multiple regression analysis revealed that two dimensions of organizational strategy and one dimension of entrepreneurial orientation have significant positive predictive relationship with organizational effectiveness. It was recommended that in a mixture of organizational strategies for organizational effectiveness, prospector and defender types should dominate, while for entrepreneurial orientation constituents, competitive aggressiveness should dominate.

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