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To explain and to predict: analysis of opportunity recognition on the relationship between personal factors, environmental factors and entrepreneurs' performance

Md. Abdul Alim (Department of Marketing, University of Rajshahi, Rajshahi, Bangladesh)
Kim-Lim Tan (Department of Business Management, BNU-HKBU United International College, Zhuhai, China) (The University of Newcastle, Callaghan, Australia) (James Cook University, Singapore, Singapore)
Teck Weng Jee (School of Business, Swinburne University of Technology–Sarawak Campus, Kuching, Malaysia) (Phuket Rajabath University, Phuket, Thailand)
Boo Ho Voon (Faculty of Business and Management, Universiti Teknologi MARA, Kota Samarahan, Malaysia)
Md. Julhaz Hossain (Institute of Business Administration, University of Rajshahi, Rajshahi, Bangladesh)
Md. Uzzal Mia (Department of Marketing, University of Rajshahi, Rajshahi, Bangladesh)

Asia-Pacific Journal of Business Administration

ISSN: 1757-4323

Article publication date: 2 June 2022

Issue publication date: 17 November 2023

434

Abstract

Purpose

This paper focuses on the factors that affect entrepreneurs' performance in small and medium enterprises (SMEs) in the context of a developing nation. Despite the advances in this literature, examination of opportunity recognition in the same model with personal factors and environmental factors on entrepreneurs' performance is lacking.

Design/methodology/approach

A quantitative survey was carried out and the data sample of 198 SMEs entrepreneurs in Bangladesh was collected using quota sampling technique. Partial least squares-based structural equation modeling (PLS-SEM) was employed to test the hypothesized relationships.

Findings

The study found that the direct effect of personal and environmental factors significantly influences entrepreneurs' performance and opportunity recognition, and opportunity recognition significantly influences entrepreneurs' performance. The results further indicated that opportunity recognition mediates the relationships between environmental factors and entrepreneurs' performance, but not on the relationships between personal factors and entrepreneurs' performance.

Practical implications

The findings from the study guide SMEs entrepreneurs' performance by utilizing the opportunity recognition more efficiently and effectively. The study further enhances practitioners' understanding of the drivers and motivations of entrepreneurs within a developing nation context.

Originality/value

Although some previous studies already exist that discuss SMEs entrepreneurs' performance, there have been few studies focusing on opportunity recognition and mediation role of opportunity recognition, and far lesser in the context of a developing nation.

Keywords

Citation

Alim, M.A., Tan, K.-L., Jee, T.W., Voon, B.H., Hossain, M.J. and Mia, M.U. (2023), "To explain and to predict: analysis of opportunity recognition on the relationship between personal factors, environmental factors and entrepreneurs' performance", Asia-Pacific Journal of Business Administration, Vol. 15 No. 5, pp. 772-794. https://doi.org/10.1108/APJBA-09-2021-0475

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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