Entrepreneurial orientation and family-owned SMEs development: way forward to ‘JAPA’ syndrome in Nigeria
DOI:
https://doi.org/10.26661/2522-1566/2025-1/31-10Keywords:
entrepreneurial orientation, SMEs, family-owned, Japa syndrome, developmentAbstract
Enhancing the functionality of a nation’s economy in the current globalization era requires a dynamic and adaptable entrepreneurial orientation attitude and mindset that can spur innovative ideas, business spirit, and ensure sustain operations in a volatile environment. In this study, seven distinct business sectors - agriculture, construction, schools, real estate, manufacturing, finance and health, in Lagos State, Nigeria, were surveyed cross- sectional to examine entrepreneurial orientation and the development of selected family-owned SMEs: way forward to JAPA syndrome. Two parts of the questionnaire -biographical information and research questions are used to collect data. On the other hand, 217 respondents made up the sample size proportionately, with 31 participants chosen from each study focus. Data analysis was conducted using Pearson correlation statistical tool. According to the study, pro-activeness has a weak but positive correlation with SMEs development. In contrast, the development of family-owned businesses is greatly impacted by innovativeness and autonomy. To end the JAPA syndrome and translate it into economic strengths and opportunities, the government should intensify and vigorously encourage entrepreneurial orientation practices by providing good infrastructure amenities that can increase the development of SMEs and addressing emerging obstacles such as low productivity, unemployment, and insecurity caused by idleness, which stem from the threatening volatile environment. It is recommended that, Proactive measures be used to advance the development and survival of SMEs, and innovation should be pursued as a guiding principle for capacity and adaptability to manage the complexity of the environment. Additionally, business autonomy is considered a necessary component of success, and dynamic orientation should be incorporated to achieve organizational growth and development.
JEL Classification: L26, M13, O12
References
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Armstrong, M.(2004).A handbook of human resource management practice. 9th Ed. Kogan publishers, India, 323-336.
Bruyat, C. & Julien, P.A. (2001).Defining the field of research. Journal of Business Venturing; 16 (2), 165-180.
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Chun-Fang, C. (2010). Perceived organizational change in the hotel industry: An implication of Change scheme. International Journal of Hospitality Management; 29(2), 157-167.
Covin, J.G. & Slevin, D.P.(1989).Strategic management of small firms in hostile and benign environments. Strategic Management Journal; 10, 75-87.
Drucker, P. F.(1998).The discipline of innovation. Harvard Business Review; 76(6), 149-157.
Dyer, W.G.J.(2006).Examining family effect on firm performance. Family Business Review;19 (4), 253-273.
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Kianto, A., Vanhala, M., & Heilmann, P.(2016).The impact of knowledge management on job satisfaction. Journal of Knowledge Management; 20 (4), 621-636.
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Miller, D. (1983). The Correlates of entrepreneurship in three types of firms. Management Science; 29, 770-791.
Morakinyo, A. & Ademosu, A. (2021).Entrepreneurial orientation and performance of small and medium scale enterprises (SMEs) in Ikeja, Lagos State, Nigeria, Acta Universitatis Danubius; 17(2), 36-51.
Mwangi, M.M.A. & Ngugi, K.(2014).Influence of entrepreneurial orientation on growth of micro and small enterprises in Kerugoya, Kenya. European Journal of Business Management; 1 (11), 417-438.
Obiwuru, T.C.,Oluwalaiye, O.B. & Okwu,A.T.(2011).External and internal environment of businesses in Nigeria: An appraisal. International Bulletin of Business Administration,12.
Okoli, N. I.E., Nwosu, K.C & Okechuckwu, M.E.(2021). Entrepreneurial orientation and performance of selected SMEs in Southeast, Nigeria. European Journal of Business and Management Research; 6(4), 108-115.
Ola, P.A.(1989).Lending guides for SSBs’ A seminar paper presented at the Nigeria Institute of Bankers. Lagos.
Otokiti,S.O. & Awodun,M.O.(2003).The master strategist management style in a turbulent business environment. Punmark Nigeria Limited, Lagos.
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Ozaralli, N. & Riverburgh, N.K. (2016). Entrepreneurial intention; Antecedents to entrepreneurial behavior in the U.S.A. and Turkey. Journal of Global Entrepreneurship Research; 6, 1- 32.
Perera, L.S. & Samarakoon, S. M. A. K.(2021).Effect of entrepreneurial orientation on SMEs’ innovation performance in Sri Lanka, Asian Journal of Advanced Research and Reports;15(2), 55-63.
Rian,A. & Teten, M.S.M.(2023).The relationship between family-owned business and the success of small medium enterprise. International Journal of Business, Economics and Social Development; 4(3), 139-145.
Rodrik, D. (2013). Structural Change; Fundamentals and Growth: An overview, Institute of advanced study.
Shan, P., Song, M. & Ju, X (2016). Entrepreneurial orientation and performance: Is innovation speed a missing link? Journal of Business Research; 69(2), 683-690.
Sitaridis, I. & Kitsios, F.C.(2017). Entrepreneurial intentions of information technology students: the theory of planned behavior, the role of gender and education. Journal for International Business and Entrepreneurship Development; 10 (3), 316-335.
Stuart, R.W. & Abetti, P.A.(1990).Impact of entrepreneurial and management experience on early performance. Journal of Business Venturing; 5(3), 151-162.
Suarez, J. (1994) Closure rules, market power and risk-taking in a dynamic model of bank behavior: LSE Financial markets group.
Thornberry,(2006). Lead like an entrepreneur. In Black lick, OH: McGraw-Hill
Vij, S. & Bedi, S.H.,(2015). Entrepreneurship and economic development: Theoretical perspectives, The Economic World; 2 (1), 1-12.
Wales, W.J., Gupta,V.K.,& Mousa, F.T.(2013). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal; 31 (4), 357-383.
Wasif, S., Amber, S., & Muhammad, A.(2020).Impact of entrepreneurial orientation, access to finance and strategic flexibility on SMEs performance. Journal of Management and Research, 7(1), 11-22.
Williams, V. (2024) United States Small Business Administration, Office of Advocacy.
World Bank (2006). Doing business 2007, how to return. World bank report.
Aliyu, I., Male, I.G., Adamu, A.R. and Aminu, A.(2022). Effect of entrepreneurial orientation on performance of small and medium enterprises in Nigeria, Journal of Business and Management,;24 (10) serial III, 53-64.
Ajani, A.O. & Adebayo, A.O. & Aremu, I.L.(2022).Role of sustainable change management and innovation on employees performance of selected fast foods in Nigeria. Fuoye Journal of Accounting and Management; 5 (1), 126-140.
Ajani, A.O. & Odesanya, A.E., Balogun,G.O & Ishola, M.A.(2018),’Framework of entrepreneurship theories in restructuring small and medium enterprises (SMEs) in Nigeria’, Journal of Business Management (IOSR- JBM), 20 (7) version IV, 57-62.
Ajani, A.O., Oluyemi, A., & Popoola, M.A.(2017),’ Influence of Entrepreneurship practices on small and medium development,(case study of selected SMEs in Lagos state, Nigeria’, International Journal of Management and Humanities 2 (12), 13-16.
Ajani, A.O. Adekanmbi, O.(2016),’Relationship between entrepreneurial characteristics and performance of small and medium scale enterprises (A case study of SMEs in Yaba LCDA)’, International Journal of Business and Social Sciences, 7 (9), 137-146.
Anderson, B.S.,Covin, J. G., & Slevin, D. P. (2009).Understanding the relationship between entrepreneurial orientation and strategic learning: An empirical investigation. Strategic Entrepreneurship Journal;3 (3),219-241.
Armstrong, M.(2004).A handbook of human resource management practice. 9th Ed. Kogan publishers, India, 323-336.
Bruyat, C. & Julien, P.A. (2001).Defining the field of research. Journal of Business Venturing; 16 (2), 165-180.
Bygrave,W.D. & Hofer, C.W. (1991).Theorizing about entrepreneurship, Entrepreneurship Theory and Practice; 16 (2), 3-22.
Cantillon, R. (1775). Essai sur la nature du commerce en general,ed and trans.Henry Higgs, London:Royal Economic Society.The 2010 English translation is available at:https://mises-media.s3.amazonaws.com/An Essay on Economic Theory.
Chan, A.T., Ngai, E.W. & Moon, K.K. (2017).The effect of strategic and manufacturing flexibilities and supply chain agility on the firm performance in the fashion industry. European Journal of Operational Research; 25(2), 486-499.
Chun-Fang, C. (2010). Perceived organizational change in the hotel industry: An implication of Change scheme. International Journal of Hospitality Management; 29(2), 157-167.
Covin, J.G. & Slevin, D.P.(1989).Strategic management of small firms in hostile and benign environments. Strategic Management Journal; 10, 75-87.
Drucker, P. F.(1998).The discipline of innovation. Harvard Business Review; 76(6), 149-157.
Dyer, W.G.J.(2006).Examining family effect on firm performance. Family Business Review;19 (4), 253-273.
Erdin, C. &Ozkaya, G.(2020).Contribution of SMEs to economic development and quality of life in Turkey. https://doi.org10.1016/j.heliyon.2020.eo3215.
Fishbein, M., & Ajzen, I.(1975).Theory of reasoned action. Encyclopedia of Behavioral Medicine, 1964-1967.
Hisrich, R.D. (2014). Advanced introduction to entrepreneurship. Cheltenham: Edward Elgar Publishing.
Hitt, M.A., Keats, B.W, & DeMarie, S.M. (1998).Navigating in the new competitive landscape: building strategic flexibility and competitive advantage in the 21st century. Academy of Management Perspectives, 12(4), 22-42.
Jones, C. & Spices, A.(2009).’Unmasking the entrepreneur,Cheltenham, UK: Edward Elgar. The Journal of entrepreneurship, 20 (2), 273-278.
Khurram, S.R., Ghulam,A., Muhammad, N., & Muhammad, A.(2021). The Influence of social norms and entrepreneurship knowledge on entrepreneurship intention: The mediating role of personal attitude. International Journal of Entrepreneurship; 25(12), 1-12.
Kianto, A., Vanhala, M., & Heilmann, P.(2016).The impact of knowledge management on job satisfaction. Journal of Knowledge Management; 20 (4), 621-636.
Kiyabo, K. & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’
Performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship; 9(1), 1-15.
Kotter, J. (1996). Leading Change: Why transformation efforts fail. Harvard Business Review, New Jersey.
Lumpkin, G.T.,Dess, G. G., & Shrader, R.C. (2001).Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing; 16(5), 429-451.
Lee, S.M., Lim, S.B. & Pathak, R.D.(2011). Culture and entrepreneurial orientation: A multi- country study. International Entrepreneurship and Management Journal; 7(1), 1-15.
Mawoli, M.A.(2019).Challenges and prospects of entrepreneurial leadership in 21st century, Nigeria. In T.Wuam and J. Jiya (Ed.), challenges and prospects of development in twenty- First century Nigeria, 291-308, London: Bahiti and Dalila Publishers.
Miller, D. (1983). The Correlates of entrepreneurship in three types of firms. Management Science; 29, 770-791.
Morakinyo, A. & Ademosu, A. (2021).Entrepreneurial orientation and performance of small and medium scale enterprises (SMEs) in Ikeja, Lagos State, Nigeria, Acta Universitatis Danubius; 17(2), 36-51.
Mwangi, M.M.A. & Ngugi, K.(2014).Influence of entrepreneurial orientation on growth of micro and small enterprises in Kerugoya, Kenya. European Journal of Business Management; 1 (11), 417-438.
Obiwuru, T.C.,Oluwalaiye, O.B. & Okwu,A.T.(2011).External and internal environment of businesses in Nigeria: An appraisal. International Bulletin of Business Administration,12.
Okoli, N. I.E., Nwosu, K.C & Okechuckwu, M.E.(2021). Entrepreneurial orientation and performance of selected SMEs in Southeast, Nigeria. European Journal of Business and Management Research; 6(4), 108-115.
Ola, P.A.(1989).Lending guides for SSBs’ A seminar paper presented at the Nigeria Institute of Bankers. Lagos.
Otokiti,S.O. & Awodun,M.O.(2003).The master strategist management style in a turbulent business environment. Punmark Nigeria Limited, Lagos.
Oyerinola, D.S, Bolaji, I.A., Adio, S.W. & Bello, O.F.(2016),’Entrepreneurship education and good governance:A potent tool for achieving sustainable development in Africa.Journal of Sustainable Development in Africa, 18 (1), 28-38.
Ozaralli, N. & Riverburgh, N.K. (2016). Entrepreneurial intention; Antecedents to entrepreneurial behavior in the U.S.A. and Turkey. Journal of Global Entrepreneurship Research; 6, 1- 32.
Perera, L.S. & Samarakoon, S. M. A. K.(2021).Effect of entrepreneurial orientation on SMEs’ innovation performance in Sri Lanka, Asian Journal of Advanced Research and Reports;15(2), 55-63.
Rian,A. & Teten, M.S.M.(2023).The relationship between family-owned business and the success of small medium enterprise. International Journal of Business, Economics and Social Development; 4(3), 139-145.
Rodrik, D. (2013). Structural Change; Fundamentals and Growth: An overview, Institute of advanced study.
Shan, P., Song, M. & Ju, X (2016). Entrepreneurial orientation and performance: Is innovation speed a missing link? Journal of Business Research; 69(2), 683-690.
Sitaridis, I. & Kitsios, F.C.(2017). Entrepreneurial intentions of information technology students: the theory of planned behavior, the role of gender and education. Journal for International Business and Entrepreneurship Development; 10 (3), 316-335.
Stuart, R.W. & Abetti, P.A.(1990).Impact of entrepreneurial and management experience on early performance. Journal of Business Venturing; 5(3), 151-162.
Suarez, J. (1994) Closure rules, market power and risk-taking in a dynamic model of bank behavior: LSE Financial markets group.
Thornberry,(2006). Lead like an entrepreneur. In Black lick, OH: McGraw-Hill
Vij, S. & Bedi, S.H.,(2015). Entrepreneurship and economic development: Theoretical perspectives, The Economic World; 2 (1), 1-12.
Wales, W.J., Gupta,V.K.,& Mousa, F.T.(2013). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal; 31 (4), 357-383.
Wasif, S., Amber, S., & Muhammad, A.(2020).Impact of entrepreneurial orientation, access to finance and strategic flexibility on SMEs performance. Journal of Management and Research, 7(1), 11-22.
Williams, V. (2024) United States Small Business Administration, Office of Advocacy.
World Bank (2006). Doing business 2007, how to return. World bank report.
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Published
2025-03-20
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Section
Entrepreneurship, Trade and Exchange Activities
How to Cite
Ajani, A.O. (2025) “Entrepreneurial orientation and family-owned SMEs development: way forward to ‘JAPA’ syndrome in Nigeria”, Management and Entrepreneurship: Trends of Development, 1(31), pp. 113–124. doi:10.26661/2522-1566/2025-1/31-10.
