The effect of entrepreneurial orientation, willingness to change, and development culture on new product exploration in small enterprises

Purpose: This study aims to assess the relationship between entrepreneurial orientation (EO) and development culture and the role of willingness-to-change in this relationship and analyzes their effect on new product exploration in small enterprises. Design/methodology/approach: A model based on structural equations with partial least squares (PLS) analysis is used to test the hypotheses. This model was tested on a sample of 250 respondents from 125 small enterprises, with less than 50 employees, located in all seven emirates of the UAE. Findings: The results suggest that EO will induce organizational members’ willingness-to-change and will favor the advancement of a development culture in small enterprises; in addition, EO, willingness-to-change and development culture can lead to new product exploration in small enterprises. Research limitations/implications: The study findings are subject to potential limitations. First, the research design for the quantitative study was cross-sectional and self-reported, which could cause problems of common method and inflation bias. Second, the conceptual model may not be completely representative of the perspective the authors aim to elucidate. Third, as this study is country-specific, further research investigation in other developing economies is recommended to further understand the possible influences of cultural or socioeconomic contexts on the relationships presented in the model. Practical implications: The article includes several practical implications about the relationships between willingness-to-change and development culture. It sheds light on the controversial link between EO and new product exploration in small enterprises. Originality/value: The present study expands current knowledge on the EO–new product exploration relationship by investigating some key mediating variables such as willingness-to-change and development culture in an under-researched context such as UAE.