Linking Entrepreneurial Orientation and Business Performance:The Examination toward Performance of Cooperatives Firms inNorthern Region of Peninsular Malaysia

Studies on entrepreneurial orientation (EO) and its influence on theperformance of business firms have received widespread attention in the fieldsof entrepreneurship and strategy. A survey was conducted to assess theinfluence of five constructs of EO, including innovativeness, proactiveness, risktaking,autonomy and competitive aggressiveness toward the firm’s businessperformance to provide additional knowledge on this subject. Assessments tookplace at the company level involved 104 cooperatives firms in the Northernregion of Peninsular Malaysia. Multiple regression analysis carried outrevealed that only the innovativeness and proactiveness constructs hadsignificant and positive relationship with the firm s business performance. Onthe other hand, the constructs of risk-taking, autonomy and competitiveaggressiveness do not show significant relationship with the firm s businessperformance. These findings are useful for a better understanding of strategiesof entrepreneurial orientation and its role in improving business performance inthe cooperative sector.