ENTREPRENEURIAL ORIENTATION AND BUSINESS PERFORMANCE IN RETAIL PHARMACIES: EVIDENCE FROM BAHRAIN

Abstract

Purpose of the study: The purpose of this study is to examine the influence of the five dimensions of entrepreneurial orientation (EO): innovativeness, autonomy, risk-taking, proactiveness, and competitive aggressiveness on the business performance of retail pharmacies. Methodology: This study used a quantitative research approach. The data from 136 pharmacists operating in different retail pharmacies in the Kingdom of Bahrain were collected through a structured questionnaire. Multiple regression was applied to test the five hypotheses that were developed based on the literature review by using SPSS. Main Findings: The study found that there is a significant positive association between pharmacy business performance and two dimensions of EO: innovativeness and risk-taking. However, autonomy, proactiveness, and competitive aggressiveness have no significant association with the business performance of retail pharmacies in Bahrain. Yet, the findings showed that not all EO dimensions have a significant relationship with business performance; therefore, the study suggested that retail pharmacies must be careful while executing EO. Applications of this study: The findings of this study is anticipated to help retail pharmacies to develop their business, as it may offer significant insight and empirical evidence for pharmacy owners or decision-makers to adopt entrepreneurial orientation in order to achieve superior performance and growth in their businesses. Novelty/Originality of the Study: This study contributes to the entrepreneurial orientation literature in the retail pharmacy sector. The findings of this study show that the entrepreneurs in the retail pharmacy sector need to focus merely on two dimensions of EO (Innovativeness and risk-taking) to yield better performance. Moreover, this study is one of the limited studies that provide empirical support for the influence of EO on the retail pharmacy industry. This is a pioneering empirical study to examine the influence of relevant dimensions of entrepreneurial orientation on the business performance of retail pharmacies in the gulf countries and the Kingdom of Bahrain in particular.