The effects of entrepreneurial orientation on strategy choice and management control in nonprofit organizations

Entrepreneurial orientation (EO) has been widely touted as a fundamental ingredient for enhancing firm growth. Consequently, this aimed at examining the impact of EO and its dimensional variables (innovativeness, risk-taking, and proactiveness) on SME growth (employment, sales, and asset growth). Using information from 285 SMEs, the results obtained indicated that while EO had a significant positive association with SME growth (employment and sales growth), most SMEs show a moderate level of EO. Also, following the EO dimensions, the findings established the emergence of proactive innovation (a combination of proactiveness and innovativeness) which showed a significant positive association on sales growth. Risk-taking was the only factor that showed a significant influence on employment and asset growth. This study also showed that controlling for the effect of firm age on growth significantly reduced the error of predicting sales growth by 2.3%. This study culminates with recommendations on enhancing EO amongst SMEs in South Africa.

Amongst other causes, the excessive and uncontrolled credit growth, the high levels of leverage with insufficient high-quality capital funding, the high degree of systemic risk accompanied with the inadequate capital buffers and the insufficient liquidity buffers and excessive exposure to liquidity risk (Coen, 2016) in the early 2000’s led to first global financial crisis of the millennium in 2008–2009. Although there has been a global effort to consolidate the financial markets, different countries had different levels of regulatory response to the financial crisis, which resulted in different speed of recovery and impact on internal management control processes. This paper delivers a comprehensive review of the key global changes in the financial market and banking regulations since the 2007–2008 financial crisis by conducting a systematic review of the published papers, directives and regulations of the global, especially the new and existing American, European and Ukrainian financial regulatory bodies and International Organizations such as the Basel Committee, IMF, FSB, EU Parliament and Commission. Trend analysis provides some evidence for the stabilization effect of the new regulations, especially in case of countries with stricter supervisory frameworks (such as the Basel Standards). Finally, the impact of the regulatory environment’s changes on the existing internal controlling systems and functions of financial institutions is assessed by comparing the key pre- and post-crisis states of the different management control functions.

Small wooden furniture businesses in East Indonesia feel pressure from the furniture businesses of the West Indonesia, in particular from Jepara, due to a fierce international rivalry. The study is intended to analyze the effect of market orientation and entrepreneurial orientation on competitiveness with innovation as an intervening variable. The study distributed 189 questionnaires to the small wooden furniture producers in the South and West Sulawesi Provinces. The collected data were analyzed by structural equation modeling using maximum likelihood approach. The study found that market orientation, entrepreneurial orientation, and innovation contributed to leveraging the competitiveness of small furniture producers. With this model, market orientation is found to have a positive and significant effect on innovation and competitiveness, both with a small-medium effect. Interestingly, the relationship between entrepreneurial orientation and innovativeness shows a positive, significant, and the most dominant of all structural causal relationships in the model, with a small-high effect. In contrast, the relationship between entrepreneurial orientation and competitiveness has a positive and significant effect with a smaller path coefficient. The study also found that innovation shows a positive and significant effect on competitiveness with a relatively small impact.

Acknowledgment
The case of small wooden furniture businesses of Indonesia is part of collaborative research between the research teams from Hasanudd in University and Universiti Kebangsaan Malaysia. In carrying out this study, the involvement of a number of agencies cannot be ignored: the Cooperative and Small and Medium Size Regional Office of South and West Sulawesi Province and Cooperatives and the Small and Medium Size Regional Office of Makassar City.