The Effect of Entrepreneurial Orientation on Organizational Performance: A Field Study in Yemeni Banks

Abstract

The aim of this study was to assess the impact of various dimensions of entrepreneurial orientation on the organizational performance of banking institutions in the Yemeni context. The study employed a correlational survey design, targeting leadership and supervisory positions within local banks. The study population consisted of 1504 individuals occupying leadership and supervisory roles across 13 banks. A stratified sample of 310 participants was selected using a stratified sampling approach. A specialized questionnaire was developed and distributed among the targeted sample, resulting in the collection of 310 valid responses. After excluding 28 invalid responses, 282 valid responses were considered for analysis. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS), revealing statistically significant positive effects of entrepreneurial orientation on organizational performance. The results further indicated that sub-factors of entrepreneurial orientation, including proactiveness, innovativeness, and aggressive competitiveness, exhibited positive and significant effects on organizational performance. Conversely, no statistically significant impact of the risk factor on organizational performance was supported.