INTERMEDIATING FACTORS IN ENTREPRENEURIAL ORIENTATION-PERFORMANCE DILEMMA: STRUCTURAL EQUATION ANALYSIS OF SMALL HOSPITALITY FIRMS IN GHANA

Adelaide Spio-Kwofie, Xuhua Hu, Michael Addai, Henry Asante Antwi

Abstract


Currently the hospitality industry is increasingly characterized by competition and this has led to a continuous demand for effective operational decision –making processes which eventually lead to performance. Our study sought to investigate the intermediary role of service-drive market orientation in the relationship between entrepreneurship orientation and the performance of small and medium scale hotels in Ghana. We postulated that service-drive market orientation (SERVMO) mediates the effect of Entrepreneurship Orientation on firm performance. We collected data from a sample of 321 managers and supervisors from ten regional capitals in Ghana. Our analysis shows that customer orientation as a service-driven market orientation factor positively mediates the relationship between entrepreneurial orientation and financial performance (0.41), customer satisfaction (0.391), customer retention (0.312), employee Retention (0.267) and occupancy rates (0.037) and these are statistically significant at 95% confidence interval. Similar positive and statistically significant intermediation is observed between Competitor orientation, Performance orientation and Long term orientation as service-driven market orientation factors and financial performance, customer satisfaction, customer retention, customer growth and occupancy rates at different levels of statistical significance. We conclude that small scale hospitality firms in Ghana has a greater propensity to stimulate performance by inculcating beliefs, behaviors and cross-functional processes  that continuously and comprehensively seeks to understand, disseminate and meet the needs of current and future target customers regarding service excellence

Keywords: Small Hotels Performance, Entrepreneurial Orientation (EO), Service-driven Market Orientation (SERVMO), Small Scale Hospitality Firm



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