Entrepreneurial Orientation, Learning Orientation, Cost Focus and Innovation in Agri-Food SME of Uganda
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Date
2022
Authors
Ajer, B.
Ngare, L.
Macharia, I.
Journal Title
Journal ISSN
Volume Title
Publisher
AFJRD
Abstract
Agri-food Small and Medium Enterprises (SMEs) play a key role in the economies of
most developing countries. With increasing challenges and competitiveness, innovation has
been shown to play a critical role in sustaining growth of the numerous agri-food SMEs in
developing countries. This innovation is influenced by several factors including entrepreneurial
orientation (EO) of the firm. This study introduces learning orientation and cost focus into
the EO-Innovation paradigm with the aim of understanding the relationship among EO,
learning orientation, cost focus and innovation. The study was conducted in the districts of
Kampala, Mukono, Wakiso and Jinja in Uganda. These districts collectively have the highest
concentration of agri-food firms in the country. Primary cross-sectional data were collected
using semi structured questionnaires from a cross-section of 521 SMEs spread across the
study area. Data were analyzed using multivariate structural equation modeling in AMOS
v.23. Results suggest the importance of proactiveness in enhancing learning orientation, cost
focus and innovation. On the other hand, entrepreneurial proclivity was seen to have significant
influence on learning orientation and cost focus but not on innovation. The findings of this
study have implications in agri-food SME learning orientation and cost focus. In essence,
helping SMEs to become proactive or have high levels of proclivity would also increase their
cost focus and learning orientation which are all important for the sustainability of agri-food
SMEs.
Description
Article
Keywords
Agri-food, entrepreneurial proclivity, learning orientation, proactiveness, small and medium enterprise, Uganda
Citation
Ajer, B., Ngare, L., & Macharia, I. (2022). Entrepreneurial orientation, learning orientation, cost focus and innovation in agri-food SME of Uganda. African Journal of Rural Development, 7(1), 68-88.