Abstract

This purpose of this study is to examine the association and influence of enterprise related factors on entrepreneurial orientation. Primary data were collected through self administered questionnaire with backup interview from two hundreds and nineteen randomly selected samples. Questionnaire was distributed among members registered with different (Khyber Pakhtunkhwa, Hazara and D.I.Khan) chambers of commerce and industry in Khyber Pakhtunkhwa province of Pakistan. The collected primary data were analyzed in both descriptive and inferential ways. Study also examined the association between the independent variables (enterprise informalization, value based compensation and access to resources) and dependent variable (entrepreneurial orientation). Pearson correlation matrix shows a positive relationship between the dependent and independent variables. Hence, results of all hypotheses were in expected direction which means that positively correlated with each other. Similarly, multiple regressions were used to measure the influence of independent variables (enterprise informalization, value based compensation and access to resources) on the dependent (entrepreneurial orientation) due to the continuous nature of data. The results show that model is perfectly fit and explaining 45.4% variation in entrepreneurial orientation due to enterprise informalization, value based compensation and access to resources. Furthermore, the beta score indicates that access to resources is the most significant predictor whereas enterprise informalization is the next leading predictor. Hence, it is in line with conclusion that enterprises related factors play an important role in flourishing entrepreneurial orientation and has positive influence on entrepreneurial orientation at 5% level of significance.