Entrepreneurial Orientation Affecting Women-Owned SMEs Performance in Vietnam 2023 PDF

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/369944305 Entrepreneurial Orientation Affecting the Performance of Women-Owned SMEs: Evidence from Vietnam* Article · January 2023 DOI: 10.13106/jafeb.2023.vol10.no1.0223 CITATIONS...

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/369944305 Entrepreneurial Orientation Affecting the Performance of Women-Owned SMEs: Evidence from Vietnam* Article · January 2023 DOI: 10.13106/jafeb.2023.vol10.no1.0223 CITATIONS READS 0 60 1 author: Loan Nguyen Hong Duc University 8 PUBLICATIONS 24 CITATIONS SEE PROFILE Some of the authors of this publication are also working on these related projects: determinants of business success for exporting SMEs in thanh hoa View project All content following this page was uploaded by Loan Nguyen on 11 April 2023. The user has requested enhancement of the downloaded file.  Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 223 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2023.vol10.no1.0223 Entrepreneurial Orientation Affecting the Performance of Women-Owned SMEs: Evidence from Vietnam* Thi Loan NGUYEN1 Received: October 10, 2022 Revised: January 06, 2023 Accepted: January 15, 2023 Abstract This study desires to examine the impact of five dimensions of entrepreneurial (EO) orientation (innovation, competitive aggressiveness, proactiveness, risk-taking, autonomy) on the operation of women-owned SMEs; the author conducted a case study in Vietnam. How will each dimension of EO affect women-owned SMEs’ performance? This study aims to seek the answer to these questions. A survey research design and a theoretical framework have been developed for all factors in the current context. A simple random sampling technique was applied in 300 SMEs in some provinces of Vietnam through a survey questionnaire, and a total of 258 valid responses were assessed as appropriate. The obtained data was analyzed by using SPSS 20.0. Cronbach’s α test and factor analysis have been carried out to test the reliability of data and validate the hypothesis. Research results show that innovation, competitive aggressiveness, proactiveness, and autonomy positively affect business performance, while risk-taking negatively affects business performance. The results suggest that female business owners should know how to improve each dimension of the entrepreneurial in line with its context. Research results are important implications for Government administrative agencies for businesses to consult and introduce effective support policies. It is recommended that similar studies be replicated to confirm this result. Keywords: Entrepreneurial Orientation, Business Performance, Women Owned SMEs JEL Classification Code: B54, B55, D85, M10 1. Introduction contributions of SMEs to the country, many programs and activities have been launched with a considerable allocation Small and medium enterprises (SMEs) have been (VCCI, 2021). Generally, in developing countries like recognized to play an essential role in the economic growth Vietnam, SMEs account for about 98% of the population. of many countries. SMEs have a strategic role that can be They are becoming the main drivers of socioeconomic seen as the backbone supporting national economic growth development, new job creation, and technological growth in (Zarrouk et al., 2020). Realizing the importance of the the country (Le et al., 2022). Which women-owned SMEs account for 26.5% of the total number of active enterprises and are making significant contributions to the development *Acknowledgements: of the economy in Vietnam and the objectives of national The authors would like thank to Hong Duc University Vietnam support us during the study time. gender equality in the period 2020–2030 (VCCI, 2021). I certify that there is no conflict of interest with any financial, However, women-owned SMEs also face many barriers personal, or other relationships with other people or organizations and disadvantages compared to male-owned enterprises, related to the material discussed in the manuscript. which can reduce their contribution to business growth as 1 First Author and Corresponding Author. Lecturer, Faculty of Economics and Business Administration, Hong Duc University, well as social development (Hawasme, 2016; ILO, 2018; Vietnam. ORCID ID: 0000-0002-2908-0193. [Postal Address: VCCI, 2019). Many studies show that although the number No 565, Quang Trung Street, Dong Ve Ward, Thanh Hoa City, of businesses is increasing significantly over the years, the Thanh Hoa Province, 40000-42000, Vietnam] Email: [email protected] business performance of these enterprises still needs to be commensurate with their potential. Compared with male- © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution owned businesses, women-owned businesses tend to be Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the smaller, less profitable, grow more slowly, and have higher original work is properly cited. closing rates (VCCI, 2021). Many reasons pointed out 224 Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 include limitations in vision, strategy, and willingness to of new products. Proactivity shows the companies taking innovate and take risks (Nuong, 2022). advantage of and quickly reacting to any opportunity to The fact shows that businesses need to look for new develop as intended. Risk-taking is the willingness to commit opportunities quickly to grow and succeed in today’s to resource-risking activities and projects under uncertain rapidly changing business environment. Owning a suitable outcome conditions; Risk tolerance is also considered to Entrepreneurial Orientation (EO) has been recognized be the degree to which an entrepreneur is willing to make as the most beneficial (Wiklund & Shepherd, 2005). EO a high business commitment. Competitive aggressiveness involves the willingness to innovate, take risks to test new is seen in companies’ passion for continuously increasing products, services, and markets, and act more proactively their position and market share by surpassing and surpassing than competitors when new opportunities arise (Manev their competitors in the market (Lumpkin & Dess, 1996). et al., 2005). Most of the previous studies on entrepreneurial This is encouraged by a strong attitude toward superior orientation have been conducted in developed countries. In competitors and may be accompanied by a similar contrast, studies on the relationship between entrepreneurial reaction from competitors. That could be when a company orientation and SMEs’ performance in developing countries, aggressively enters a market defined by rival companies. such as the Southeast Asian context, are pretty scarce. It is an integrated approach or outlook that aims to a better Research related to business orientation is progressing position or overcome competitor threats. Aggressiveness in rapidly as scholars acknowledge entrepreneurial orientation competition is an intense struggle to overcome competitors. as one of the critical factors in gaining a competitive With Autonomy, the company seeks independence to act. It advantage for the survival and sustainability of many may involve individuals or groups independently generating businesses. Another issue under debate is whether aspects ideas and concepts through implementation from start to of entrepreneurial orientation are unidirectional or finish (Covin & Slevin, 1991). Autonomy allows employees multidimensional. Many previous studies used three to be productive by being independent, self-directed, aspects of business orientation and considered business dynamic, and creative. orientation as a unidimensional structure (Korry et al., Thus, EO is considered from unidirectional and 2013; Anggadwita et al., 2021). Therefore, this study was multidimensional perspectives. The one-way view is conducted to study business orientation in women-owned associated with work and is expressed by the relationship SMEs in Vietnam to determine the relationship between five between the ownership of innovation, initiative, and risk- aspects of business orientation - Innovation, Pro-activeness, taking with each other (Miller, 1983). On the other hand, Risk-taking, Competitive Aggressiveness, and Autonomy on from a multidimensional perspective, innovation, Autonomy, business performance from which to make more appropriate initiative, risk-taking, and competitive aggressiveness are judgments and conclusions on this issue as well as suggest considered independent aspects of business orientation strategic directions for female entrepreneurs. (Lumpkin & Dess, 1996). In the unidirectional view, entrepreneurial orientation is considered a single quality 2. Literature Review (Wiklund & Shepherd, 2005), while in the multidimensional view, EO is made up of many factors such as autonomy, 2.1. Concept of Entrepreneurial Orientation proactivity, risk-taking, innovation, and aggressive competition, and these factors are independent of each other EO is a planned corporate-level positioning that outlines (Akinyele et al., 2021). In this study, the author will apply the company’s strategic planning methods, management a multidimensional view of entrepreneurial orientation to philosophies, and corporate behaviors of a business nature. examine the impact and difference of each EO component EO is better illustrated as the process a firm takes to on the business performance of women-owned SMEs. enter a new market (Lumpkin & Dess, 1996) and is often viewed in terms of risk-taking, innovation, and initiative. 2.2. Business Performance Miller (1983) demonstrated EO through case analysis of companies engaging in product-market innovation, The performance of the company is defined as a firm’s undertaking somewhat risky projects, and pioneering ability to create action and acceptable results (Pfeffer proactive innovations beat the opponent. The concept of & Salancik, 1978). Therefore, we need a concept and EO is increasingly being expanded by adding “autonomy” operational systems as well as variables that can be measured and “competitive aggressiveness” and treating EO as a to be the corporate performance measurement standards. decision related to the company’s strategy in the process of Business performance can be measured in different ways; innovation and development (Alam et al., 2022). Innovation some measures are economic value added, return on is the tendency to engage and support the creation of new assets, and return on equity. Alasadi (2007) stated that the ideas, which differ in their originality, experimentation, and performance of SMEs can be seen from the satisfaction of the creativity in the process of new production or modification owner/manager (the dependent variable) on profit, turnover,  Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 225 and business development. The measurement of business proactiveness affects business performance, the following performance through self-assessment of owners/managers hypothesis is proposed: was applied in this study. According to Igwe et al. (2019), H1: Proactiveness has a positive and significant effect many previous studies have applied self-report methods to on business performance. measure business performance, and these data have been verified to be reliable. Therefore, this study used subjective 2.3.2. Innovation and Business Performance and self-reported measures of business performance. The criteria used to evaluate the business performance Innovation reflects a company’s tendency to engage of enterprises are inherited from the study of Kaplan and with and support new ideas, novelties, experiments, and Norton (1993) and Le et al. (2022) based on four aspects of innovative processes that can create new technological BSC and the general satisfaction of business owners. products, services, or processes (Zarrouk et al., 2020). Innovation allows startups to differentiate themselves from 2.3. Entrepreneurial Orientation Dimensions and other businesses and break away from the traditional way Women-owned SMEs’ Business Performance of doing business, thereby preventing failures related to resource shortages, economies of scale, and more (Lukiastuti Entrepreneurial-oriented aspects have been used as an & Kusuma, 2021). Companies must innovate in response approach to understanding how the behavior of entrepreneurs to changes in the external environment. Opportunities can impacts their performance. The strategic choice theory arise from changes in the company’s external environment, holds that entrepreneurs determine the direction of their requiring adopting new innovative strategies to capitalize on business and act accordingly. These decisions are guided them. Jyoti et al. (2011) argued that innovation has helped by their orientation. Consistent with this, many studies female entrepreneurs develop new ideas to help them run have concluded that among female entrepreneurs, EO has their businesses effectively. improved along with their business performance. Similarly, Ayub et al. (2013) and Lestari et al. (2020) found that entrepreneurs must confront and surpass their 2.3.1. Proactiveness and Business Performance competitors by innovating in today’s fiercely competitive environment. EO & CU (2015) found among Nigerian The contemporary business environment requires female entrepreneurs that their innovative and creative businesses to be proactive, and the sustainability of the activities made it easier for them to generate business ideas, business depends on the ability of female entrepreneurs start business plans, and nurture them into adulthood. Sidek to stay ahead of the market. In the literature on female et al. (2016), supporting this claim, reported that innovation entrepreneurs, some researchers have argued that women’s is found to have a statistically significant positive impact on social background affects their initiative. This claim is business performance metrics such as sales growth, market based on the assertion that patriarchy, a social system that share, ratio profit-to-sales ratio, market development, and women have to deal with, negatively affects their self- new product development and performance of companies. esteem (Ahl, 2006). Using this proposition, the level of Consequently, innovation has become the most crucial the initiative of female entrepreneurs is different from that factor in characterizing entrepreneurship and contributing of men (Ahl, 2006). Empirical evidence shows that their to entrepreneurial organizations’ profitability and growth initiative significantly influences how entrepreneurs run (Hoang & Ngoc, 2019; Dadzie et al., 2021; Alam et al., their businesses. Proactiveness is often viewed as the ability 2022). To see further, in the context of small and medium to anticipate and pursue opportunities by being proactive enterprises, how innovation affects business performance, and engaging in emerging markets (Mahmood & Hanafi, the following hypothesis is proposed: 2013). It involves combining proactive and aggressive strategies, such as introducing products or services ahead H2: Innovation has a positive and significant effect on of the competition and anticipating future needs to change Business Performance. and shape the environment in which a company operates (Keh et al., 2007). The main advantage of proactiveness is 2.3.3. Risk-taking and Business Performance that it allows entrepreneurs to predict the moves of their competitors, thus maintaining a first-mover advantage as Risk-taking is an aspect of EO that requires a willingness well as anticipating changes in demand of customer needs to invest a significant amount of resources in exploiting (Akinyele et al., 2021). Previous research has shown a business opportunities or taking business actions with positive association between the proactiveness and business potentially highly uncertain outcomes (Wiklund & performance of enterprises (Mahmood & Hanafi, 2013; Shepherd, 2003; Keh et al., 2007). It has been recognized as Akinyele et al., 2021; Alam et al., 2022; Nuong, 2022). To a characteristic of entrepreneurs and entrepreneurial firms, see more clearly in the context of women-owned SMEs, how with the general argument that a risk-taking orientation 226 Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 allows entrepreneurs to seize market opportunities, resulting & Morgan, 2007). Lumpkin and Dess (1996) believed in higher profits and lucrative business transactions, thus, a that entrepreneurial drive is an essential orientation for solidly successful positive effect (Krauss et al., 2005). The successful entrepreneurial operations. To see further in influence of female entrepreneurs’ risk-taking activities the context of small and medium enterprises, how the is variable; while some researchers observe that female impact of fierce competition on business performance, the entrepreneurs are risk-takers, others argue that they are proposed hypothesis is as follows: not risk aversion (Boohene et al., 2008). Several studies H4: Competitive aggressiveness has a positive and have found that risk-taking has a significant impact on significant effect on business performance. technology and creativity (Lukiastuti & Kusuma, 2021). Alam et al. (2022) showed that risk-taking is found to lead 2.3.5. Autonomy to profits and market share. However, some studies have also reported a negative relationship between high risk- Autonomy is “the independent act of an individual taking and business success (Unger et al., 2011; Nuong, or a group in coming up with an idea or a vision and 2022). These mixed findings were summarized in the study implementing it until its completion” (Lumpkin & Dess, by Kreiser et al. (2002). They observed a “U” shaped curve 1996). Autonomy not only means a sovereign act but relationship between risk-taking and business performance. also denotes the individual’s ability to carry out ideas and This assertion implies that, in some cases, lower risk leads efforts to realize them (Alam et al., 2022). Individuals with to higher performance. The relationship between risk-taking a high need for self-control often prefer to make their own and business performance is contradictory. Accordingly, decisions and are less concerned with the opinions and rules more research is needed to provide further insights into this of others. There are still many opinions surrounding the association. relationship between Autonomy and business performance. To see further in the context of SMEs, how risk-taking Some studies found that Autonomy was rated as the essential affects business performance, the following hypothesis is factor for improving organizational change in the company proposed: and has a positive effect on the firm performance (Akinyele H3: Risk-taking has a positive and significant effect on et al., 2021). “A higher degree of autonomy leads to higher Business Performance. organizational performance” (Baba, 2011). In studies involving small businesses, behavior related to Autonomy is often examined by how often managers 2.3.4. Competitive Aggressiveness and Business delegate and how centralized management is (Lumpkin & Performance Dess, 1996). Usually, in small businesses, the owners of Competitive aggressiveness refers to the tendency of a these businesses are self-directed and prefer to motivate business to dare to challenge, to confront its competitors employees with their ideas and visions and do not want strongly to achieve the goal of entering or improving its to delegate authority properly. Kusumawardhani (2013) position to outperform competitors in the market (Alam argues that giving Autonomy can bring job satisfaction to et al., 2022). It is reflected by the fighting stance and employees. However, in some cases, Autonomy can hinder strong reaction to competitor moves, such as going head- the achievement of goals if more than independence and to-head by entering the market defined by the competitors Autonomy is needed because the employee’s actions are not or reacting as retaliation to a competitive challenge by taken into account with factors such as the personality and lowering prices. Other strategies that reflect the fierceness stage of the company’s development. Based on the above of competition include intense price competition, entering observations, the author proposes the following hypothesis: the market with a new and superior product, following H5: Autonomy has a positive and significant effect on competitors quickly into the market, and employing Business Performance. aggressive unique surprise tactics (Hughes & Morgan, 2007). Firms that are fiercely competitive see their 2.4. Research Framework competitors as enemies that need to be conquered and, therefore, constantly evaluate their competitors to identify This study aims to examine the hypothetical relationship and capitalize on their weaknesses (Hughes & Morgan, between dimensions of entrepreneurial orientation as 2007). According to Akinyele et al. (2021), competitive independent variables and the business performance of aggressiveness can enhance a firm’s performance to women-owned SMEs as a dependent variable. Six measured strengthen its position through competitive moves aimed at variables include the business performance of enterprises, inefficient or less powerful competitors. Such moves tend to innovation, competitive aggressiveness, proactiveness, risk- undermine competitors’ ability to compete and predict and taking, and autonomy. Therefore, the following conceptual respond positively to the company’s next move (Hughes model is used in this study (Figure 1).  Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 227 Figure 1: Conceptual Framework of Research 3. Research Methodology 4. Results The proposed method to be applied in the research will Generalized regression analysis was used to explain be a quantitative method in which the researcher will use a the impact of EO on firm performance. Descriptive survey questionnaire to collect research data. The research statistics such as mean and standard deviation describe participants will be female entrepreneurs who own small and the data. Normality, variance, and collinearity tests were medium enterprises (SMEs) in Vietnam. The list of small and performed to test the assumptions of the regression medium enterprises will be extracted from the data of the analysis. General Statistics Office. A simple random sampling method was applied to ensure that female entrepreneurs’ chances of 4.1. Descriptive Analysis being selected were equal and objective. Closed questions will be used in the questionnaire to collect data for the study. The Table 1 shows that most female entrepreneurs partici­ survey panel comprises three parts: Part A relates to businesses pating in the interviews are aged 35–50, with the number and respondent profiles. Section B has eighteen (18) items that of years of running the business accounting for mainly measure five aspects of business orientation, while Section C 3–8 years. This shows that female entrepreneurs in has six (6) items on business performance. A 5-point Likert Vietnam start their businesses quite late, this could be due scale will be used in the study. The independent variables to many reasons, but the main reason may be that most are entrepreneurial orientation inherited from the scale of female entrepreneurs have gone to work for businesses as Lumpkin and Dess (1996), and Alam et al. (2022) applied employees or have managed cooperatives and cooperative and divided into five dimensions expressed by proactiveness, groups before setting up SMEs. Most of the surveyed innovation, risk-taking, competitive aggressiveness, and enterprises are micro-enterprises, with several employees Autonomy in which respondents indicated the extent to which under 50, accounting for 69%, and mainly working in the the items represented their company’s strategy. On the other service and trade sectors. hand, the business performance categories apply measures from previous studies by Kaplan and Norton (1993) and 4.2. Reliability Test Nuong et al. (2022) and add a scale of overall satisfaction of business owners with business performance. Check-back techniques are selected from different types The data obtained from the questionnaire was analyzed of reliability measures. Cronbach’s alpha coefficient is used using SPSS version 21.0. The mean and standard deviation to test the questionnaires to confirm the internal consistency were calculated for the items remaining after the EFA. of the research instrument. Multivariate regression and analysis of variance (ANOVA) Table 2 shows that Cronbach’s alpha coefficients are were performed to test the central hypothesis of the model. all greater than 0.7, thus ensuring statistical reliability. The decision criterion is to accept the central hypothesis if Therefore, this implies that the variables are internally the significance level is less than 0.05. consistent, and the scale is suitable for further analyses. 228 Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 Table 1: Information on Female CEOs and Their Business Criteria Number of People (%) Criteria Number of People % 1. Age 3. Number of employees Under 25 5 1.94 Under 50 178 69.0 From 25–35 45 17.4 From 50–100 54 20.93 From 35–50 155 60.0 From 100–200 24 9.3 Over 50 53 20.5 Above 200 2 0.8 2. Experience 4. Type of business From 1–3 years 65 25.2 Trade and service 168 65.12 From 3–8 years 99 38.37 Construction & Production 45 17.4 From 8–15 years 57 22.1 Agriculture 22 8.5 Over 15 years 37 14.3 Others 23 8.9 Table 2: Summary of Cronbach’s Alpha Coefficients of the parameters in the model, the dimensions affecting the Observed Variables business performance are calculated by the sum of the observed variables of each factor. The regression equation Number of Cronbach’s uses the least squares method, with the ENTER method, Factors Variables Alpha due to the nature of the research being exploratory. The Inno (Innovative) 5 0.894 criteria selected in the regression hypothesis test include multicollinearity (VIF < 3) and; the White test with a Pro (Pro-activeness) 4 0.796 significance level p > 0.05 (95% confidence level) to ensure Risk (Risk-taking) 6 0.848 that there is no multicollinearity phenomenon and the Compe (Competitive phenomenon of variance does not appear. 5 0.836 Aggressiveness) Auto (Autonomy) 5 0.915 4.4.1. Check the Goodness of The Model Fit BP (Business The assumption of independence of residuals is also 5 0.745 Performance) not violated, as shown by the Durbin-Watson coefficient of 1,741, ranging from 1 to 3. According to Trong & Ngoc 4.3. AFA Analysis (2008) if 1 < d < 3, then the model concludes that there is no residual autocorrelation; if 0 < d < 1, then the model has The results of the second rotation matrix analysis (EFA) positive autocorrelation, if 3 < d < 4 then the model has with 23 independent variables (after removing the variables negative autocorrelation. Therefore, it can be concluded that Risk 1 and Risk 4 in the first rotation of the matrix) were the independence of the residuals is guaranteed (Table 3). divided into five groups of factors as before, without the The evaluation of the R2 value above shows that the multiplier group newly created factors, all variables have linear regression model built is appropriate when all five Factor loading coefficient greater than 0.5, showing that dimensions of EO explain 76.7% of the business performance factor analysis is appropriate. of small and medium enterprises while other factors explain the rest. However, to be able to infer this model into a model 4.4. Model Testing of Dimensions of EO and of the population, we need to conduct an F-test through Business Performance of Women-owned analysis of variance. SMEs in Vietnam According to the results in Table 4, analysis of variance (ANOVA) shows that Sig. = 0.000 < 0.05. Thus, the model of From the theoretical model to study the relationship EO dimensions affecting business performance is consistent between the dimensions of EO (proactiveness, innovation, with the actual research data. In other words, the independent risk-taking, competitive aggressiveness, and Autonomy) variables are linearly related to the dependent variables with and the business performance of enterprises. To estimate a 95% confidence level.  Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 229 4.4.2. Results of Regression Analysis depends on five factors (1) Innovative (Inno), (2) Pro- activeness (Pro), (3) Risk-taking (Risk), (4) Competitive The results of testing the assumptions of the regression Aggressiveness (Compe) (5) Autonomy (Auto). A 5-level model drawn from the Enter method also show that the Likert scale measures the observed variables, so from the assumptions are not violated, and there is no multicollinearity regression equation, we can conclude the impact of each because VIF is less than 3. factor on the business performance (BP). Thus, all five The results from Table 5 show that there are only five hypotheses given above are accepted. independent variables (including Innovative, Pro-activeness, Risk-taking, Competitive Aggressiveness, and Autonomy 5. Discussion of the model have statistical significance because of the Sig value < 0.05 (at the 95% confidence level), moreover, these Hypothesis one suggests that proactiveness has a regression coefficients are all >0, that is, they all have a significant impact on business growth. The results of this positive effect except for the risk-taking variable, which has study are consistent with that of Alam et al. (2022) and a negative impact on business performance due to negative Mahmood and Hanafi (2013), that proactive companies coefficient. outperform their competitors because they react quickly The regression has the following form: to market changes and become industry leaders with the opportunities they find ahead of their competitors. Therefore, BP = 385 + 0.328 Inno + 0.301 Pro + (−0.111) Risk EO and performance/growth found a positive relationship + 0.134 Compe + 0.220 Auto between initiative and performance. Proactivity impacts From the regression equation, conclusions can be drawn business results; we see every business being accountable, from the research sample that Business Performance (BP) finding solutions, having control, and being eager to tackle Table 3: Model Summary Change Statistics Adjusted Std. the Error Durbin- R R2 R Square Sig. F R2 in the Estimate F Change df1 df2 Watson Change Change 0.878a 0.771 0.767 0.32491 0.771 170.444 5 253 0.000 1.741 Table 4: ANOVA Model Sum of Squares Df Mean Square F Sig. Regression 89.967 5 17.993 170.444 0.000b Residual 26.709 253 0.106 Total 116.676 258 Table 5: Coefficientsa Unstandardized Standardized Collinearity Statistics Model Coefficients Coefficients T Sig. B Std. Error Beta Tolerance VIF (Constant) 0.385 0.202 1.907 0.058 Inno 0.328 0.044 0.339 7.407 0.000 0.432 2.313 Pro 0.301 0.057 0.246 5.260 0.000 0.412 2.425 1 Risk −0.111 0.025 −0.162 −4.437 0.000 0.676 1.480 Compe 0.134 0.053 0.120 2.518 0.012 0.400 2.500 Auto 0.220 0.053 0.189 4.177 0.000 0.440 2.274 a Dependent Variable: BP. 230 Thi Loan NGUYEN / Journal of Asian Finance, Economics and Business Vol 10 No 1 (2023) 0223–0232 new challenges like the entry of imported products will 6. Conclusion become competitors of domestic SMEs. Hypothesis two suggests that business innovation has a Based on the findings, the study concluded that significant impact on revenue growth. This study’s results entrepreneurial orientation is helpful as a predictor of are consistent with Wiklund and Shepherd (2003), agreeing the performance of women-owned SMEs in Vietnam. that entrepreneurship cannot exist without innovation, and All entrepreneurial-oriented dimensions: innovation, innovation is an essential part of a strategy. Their findings proactiveness, competitive aggressiveness, and Autonomy, suggest a positive relationship between innovation and firm have a significant positive impact on business performance, performance. Therefore, the importance of innovations, except risk-taking, which has a significant negative impact a variable that contributes to the measurement of EO and on business performance. This study contributes to a deeper performance, is indisputable. Innovation has a significant understanding of the multidimensional framework of impact on business performance. This is characterized by business orientation. Innovation, proactiveness, risk–taking, an effort to generate new product ideas and implement new competitive aggressiveness, and Autonomy are single market-ready product designs to meet consumer needs; this step structures that can be tested separately. is supported by searching for more efficient business process The proposed framework applied in the study will steps that can improve a business’s competitive advantage. provide some insights and overviews for SMEs, specifically Hypothesis three suggests that business risk-taking women entrepreneurs, by explaining the influence of has a significant effect on profitability. However, the entrepreneurial orientation on business efficiency. This study research results show that risk-taking negatively affects will also add to the entrepreneurship literature as it applies business results. This result is in contrast to the results the five dimensions of EO to which many previous studies of Akinyele et al. (2021) and Alam et al. (2022) that risk- have applied three aspects. The study results will also be taking behavior contributes to the business performance of necessary to policymakers in assisting them in implementing female entrepreneurs. It also contrasts with the respondents’ programs and activities for developing women entrepreneurs claim that taking on risks expressed as conducting research more effectively. The findings generated later from this before undertaking an investment and ensuring the business study will assist female entrepreneurs in determining which is essential to the business. Risk-taking is vital in business factors need more attention. 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