Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


The Effect of Stakeholder Orientation on the Performance Of Micro and Small Manufacturing Enterprises in Bahir Dar city administration

Author(s): Abebe Alemu

Micro and Small Enterprises (MSEs) play an important role in economic growth, innovation, and competitiveness, which ultimately enhances enterprise performance. The main objective of this research is to investigate the effect of stakeholder orientation on the performance of manufacturing MSE in Bahir Dar city administration. In order to accomplish this purpose, the reliability and validity of the instrument was assessed, followed by a Pearson correlation analysis and a multiple regression analysis to test the proposed hypotheses. In addition, this research employed survey design by using cross-sectional methods and correlational study design with quantitative and qualitative research approach.

The total populations of the study were 375 enterprises in the six sub-city of Bahir Dar city administration. A sample of 194 enterprises was selected for the study from the total population by using stratified and simple random sampling technique. In the process of answering the basic questions, a questionnaire that includes demographic profiles, characteristics of an enterprises, stakeholder orientation data was designed in a closed ended and likert scales. Moreover, interviews were held with top officials of TVED bureau, respondents of interviewee were taken by purposive sampling technique. After the data has been collected, it was analyzed using simple statistical techniques, descriptive statistics and inferential statistics. The result of the study indicates that SO /customer orientation, competitor orientation, employee orientation, and owner-manager interest/ have a positive and significant effect over the enterprise performance of the MSE manufacturing sector.

The study recommended, Owners/managers of MSE manufacturing enterprise should constantly make an effort to satisfy the needs and wants of customers by delivering superior value for them, they should comprehend the nature of competitors, their technologies, and products that customers perceive as alternative businesses to position themselves well in the marketplace, enterprise managers should invest time and resources in staff development potentially leading to superior skills and knowledge in support of customer service and an owner-manager of the enterprise should accommodate the interests of all parties or owners or members with a financial interest in the business and formulate & implement profit making strategies.

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