The autonomous side of EO and firm performance: the role of professional experience and entrepreneurial engagement

Abstract

Purpose

The purpose of this study is to investigate the direct and indirect role of autonomy on firm performance. It also determines the role of professional experience in the relationship.

Design/methodology/approach

The authors analyzed data collected from 124 small firms in Addis Ababa city using the ordinary least square (OLS) regression and hierarchical regression analysis.

Findings

The result of the OLS regression revealed that autonomy directly and indirectly (through entrepreneurial engagement) influences the firm's performance. Besides, professional experience moderates the relationship between autonomy and performance, as well as the relationship between autonomy and entrepreneurial engagement.

Practical implications

Entrepreneurs should tend to engage in the works that they have professional experience than involving in jobs that they have no experience.

Originality/value

This study examines the relationship between autonomy and firm performance in established firms. It is among the first studies that tested the moderation influence in the relationship. That is, determining the role of professional experience is a novel contribution of this study, which is forgotten previously.

Citation

Tufa, T.L., Belete, A.H. and Patel, A.A. (2021), "The autonomous side of EO and firm performance: the role of professional experience and entrepreneurial engagement", African Journal of Economic and Management Studies, Vol. 12 No. 3, pp. 439-452. https://doi.org/10.1108/AJEMS-09-2020-0445