Entrepreneurial Orientation: Developing an Instrument of Measurement

Abstract

Purpose – This study aims to create a tool for measuring entrepreneurial orientation, specifically for measuring the entrepreneurial orientation of individuals, including Malay entrepreneurs.

Design/methodology/approach – A test of the Individual Entrepreneurial Orientation (IEO) was devised, verified, and administered to three hundred Malay business owners. The definitions of the five entrepreneurial orientation dimensions provided by Lumpkin and Dess served as the foundation for the scale's items. Three of the dimensions had valid and dependable measures after the IEO questions were finalized and analysed using exploratory factor analysis.

Findings – Three unique components innovativeness, risk-taking, and pro-activeness that showed reliability and validity were identified throughout the IEO scale development process. These factors are statistically associated with measures of entrepreneurial intention.

Research limitations/implications – The study included Malay business owners in Kelantan, and for better generalizability, it ought to be expanded to include non-business owners, other parts of the nation and the globe.

Practical implications – Entrepreneurship team and project assignments, as well as entrepreneurship training, might benefit from the application of an individual-level entrepreneurial orientation measuring tool. It is valuable as a determining element while deciding on entrepreneurship training for different ideas, such as business ventures and career choices. IEO can also be utilized by those who wish to gauge how strongly they are inclined toward entrepreneurship as well as venture capitalists who are thinking about funding business ideas.

Originality/value – This article aids in measuring an individual's entrepreneurial orientation and can be applied to business training and entrepreneurship education.