To explain and to predict: analysis of opportunity recognition on the relationship between personal factors, environmental factors and entrepreneurs' performance

Journal Publication ResearchOnline@JCU
Alim, Md. Abdul;Tan, Kim-Lim;Jee, Teck Weng;Voon, Boo Ho;Hossain, Md. Julhaz;Mia, Md. Uzzal
Abstract

Purpose – This paper focuses on the factors that affect entrepreneurs’ performance in small and medium enterprises (SMEs) in the context of a developing nation. Despite the advances in this literature, examination of opportunity recognition in the same model with personal factors and environmental factors on entrepreneurs’ performance is lacking. Design/methodology/approach – A quantitative survey was carried out and the data sample of 198 SMEs entrepreneurs in Bangladesh was collected using quota sampling technique. Partial least squares-based structural equation modeling (PLS-SEM) was employed to test the hypothesized relationships. Findings – The study found that the direct effect of personal and environmental factors significantly influences entrepreneurs’ performance and opportunity recognition, and opportunity recognition significantly influences entrepreneurs’ performance. The results further indicated that opportunity recognition mediates the relationships between environmental factors and entrepreneurs’ performance, but not on the relationships between personal factors and entrepreneurs’ performance. Practical implications – The findings from the study guide SMEs entrepreneurs’ performance by utilizing the opportunity recognition more efficiently and effectively. The study further enhances practitioners’ understanding of the drivers and motivations of entrepreneurs within a developing nation context. Originality/value – Although some previous studies already exist that discuss SMEs entrepreneurs’ performance, there have been few studies focusing on opportunity recognition and mediation role of opportunity recognition, and far lesser in the context of a developing nation.

Journal

Asia-Pacific Journal of Business Administration

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Volume

15

ISBN/ISSN

1757-4331

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Issue

5

Pages Count

23

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Publisher

Emerald Publishing Limited

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Date

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EISSN

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DOI

10.1108/APJBA-09-2021-0475