Effects of self-concept traits and entrepreneurial orientation on firm performance

This study examined relationships among three self-concept traits, entrepreneurial orientation, and firm performance using survey data from 96 entrepreneurs. We used path analysis to test the direct and indirect effects of the trait variables on perceptual measures of firm performance. Entrepreneurial orientation - operationalized to reflect the dimensions of innovativeness, proactiveness, and propensity to take risks - was used as the mediating variable for explaining the relationship between self-concept traits and firm performance. The results indicated that internal locus of control was positively related to firm performance, and entrepreneurial orientation did not play a mediating role in this relationship. In contrast, generalized self-efficacy had no direct effects on firm performance; however, it influenced firm performance positively through its effect on entrepreneurial orientation. Finally, self-attributed achievement motive was not significantly related to entrepreneurial orientation or firm performance. Implications of the findings and suggestions for future research are discussed.