Entrepreneurial innovativeness, competitive aggressiveness, risk appetite and the internationalization of agro-processing SMEs in Ghana
Betty Sumboh, Pavel ZufanPurpose
Entrepreneurial innovativeness and competitive aggressiveness facilitate national development and competitiveness in small- and medium-sized enterprises (SMEs). The degree of risk SMEs are willing to take influences their desire to internationalize. Accordingly, this study examines the mediating role of risk appetite in the relationship between entrepreneurial innovativeness, competitive aggressiveness, and internationalization among agro-processing SMEs in Ghana. Internationalization is operationalized through export engagement.
Design/methodology/approach
Grounded in the Uppsala model and the resource-based view, this study uses a quantitative approach (a cross-sectional survey of 341 Ghanaian SMEs) guided by an explanatory design. Hypothesis testing and construct reliability assessments are conducted using partial least squares structural equation modeling.
Findings
The results indicate that both innovativeness and competitive aggressiveness are positively associated with SMEs' export engagement. Moreover, risk appetite serves as a significant mediating mechanism that is associated with the relationship between innovativeness and competitive aggressiveness and export engagement. These findings highlight the need for policies and programs that support innovation, strategic aggressiveness and risk tolerance in the SME sector.
Research limitations/implications
This study excludes other strategic orientation-related factors, such as market or network orientation. Future studies could adopt mixed-method approaches and consider contextual factors that influence export dynamics.
Originality/value
This study extends the literature by situating innovativeness and competitive aggressiveness within the context of internationalization in low- and middle-income economies. Specifically, it uncovers how entrepreneurial traits facilitate export performance in agricultural SMEs, with risk appetite serving as a crucial psychological and strategic enabler.