Impact of Entrepreneurial Orientation on Entrepreneurial Performance of Tourism Enterprises – A Study with reference to Southern Province of Sri Lanka.

Abstract

Entrepreneurship is recognized as one of the most powerful economic weapons in any developing country. Sri Lanka, has recognized the Tourism Sector as one of the most pressing business sector which can have multiplier effect on local community. Tourism is considered as one of the main foreign exchange earning source of any country and it is a significant contributor to the social and economic development of the country. The succession of any firm depends on the entrepreneurial behavior of the business (Lumpkin and Dess, 1996). The main focus of this study was to identify the impact of entrepreneurial orientation on firms’ performance of tourism enterprises. Galle, Matara and Hambanthota districts (Southern province, Sri Lanka) have been selected as the research site of this study. As the study population, the researcher has selected the tourism entrepreneurs who were registered at the Chamber of Commerce and Industries of Matara, Galle and Hambanthota districts. Out of the total population, 120 tourism entrepreneurs were selected for the sample using systematic probability sampling technique. Self administered questionnaire was used to collect primary data and secondary data sources were also used. Pearson correlation and regression analysis were applied to analyze the data. The study reveals, there is small to medium relationship between entrepreneurial orientation and tourism entrepreneurial performance (r=0.312). Risk taking, innovativeness, proactiveness and competitive aggressiveness are the key factors which affect entrepreneurial performance whereas autonomy has very little role. The study identified the necessity of introducing awareness and stimulation programs towards entrepreneurship for the youth groups. Facilitating entrepreneurs with financial and non-financial resources would stimulate them towards entrepreneurial activities. Creating linkages between local tourism and local goods manufactures will benefit local community. The government needs to create a legal platform to protect local small and medium scale Tourism Entrepreneurs from large scale direct investments.