An investigation of the Role of Environmental Factors on Entrepreneurial Orientation, Evidences from Iranian Animal Production Cooperatives

Pishbin, Seyed Ahmad Reza; Iravani, Hooshang; Movahed Mohammadi, Seyed Hamid; Shabanali Fami, Hossein; Rezvanfar, Ahmad

doi:10.22059/ijaedr.2012.30509

An investigation of the Role of Environmental Factors on Entrepreneurial Orientation, Evidences from Iranian Animal Production Cooperatives

Authors

Seyed Ahmad Reza Pishbin

Hooshang Iravani

Seyed Hamid Movahed Mohammadi

Hossein Shabanali Fami

Ahmad Rezvanfar

10.22059/ijaedr.2012.30509

Abstract

The main goal followed throughout this research was an identification of the role of environmental variables in Entrepreneurial Orientation (EO) dimensions, implemented as a correlational research, and by an application of causal model. Statistical sample of the study consisted of 1800 cooperative memberships for the selection of which one out of each six regional groups of Provinces (as clustered by Taavon Ministry), was randomly selected. A 268 research sample was further randomly selected from the six provinces as based on Cochran’s Sampling formula to fill in the questionnaire. The research instrument consisted of a five point scale (Likert Scale) for latent variables, assessment. Validity of the questionnaire was verified by use of Average Variance Extracted (AVE) which is a one method of Discriminant validity. Also, composite reliability coefficients were calculated for the questionnaire's different sections. These figures indicated that the questionnaire was of a high potential for as regards data gathering. Structural Equation Modeling was employed while LISREL 8.54 software package being applied. The results obtained through SEM indicated that the competitiveness, independence, risk taking, innovation orientation and proactiveness as five dimensions of Entrepreneurial Orientation are influenced by environmental factors. Social, economical and policy latent variables play a significant role in cooperatives' EO strenghth as evidenced by the causal model.

Keywords

cooperatives

Entrepreneurial Orientation (EO)

environmental factors

Structural Equation Modeling (SEM)