Despite the importance of transformational entrepreneurship (TE), little research has examined its determinants in least developed countries (LDCs). This study aims to analyze the strategic circumstances within which entrepreneurial orientation (EO) can lead to TE in the context of the primary sector of LDCs (a context characterized by low innovation and resource constraints).
Using structural equation modeling, the study tested the proposed theoretical model using a data set of 210 small and medium-sized enterprises (SMEs) from an African LDC. Data analysis was performed using partial least squares-structural equation modeling.
The study confirmed that in the context of poverty, EO does not lead directly to TE. Market orientation (MO) was not significant in translating EO into great entrepreneurial outcomes. In contrast, marketing capabilities (MC) are critical to translate EO into TE. Furthermore, contrary to expectations, the entrepreneur’s sex is not found to affect the relationship between EO and TE in LDCs.
This study focuses on individual-level factors instead of macro-level factors, as usually observed, to offer a more granular outlook on potential determinants of TE. Second, the study focuses on the mediating role of MC and MO, clarifying their respective contributions by empirically investigating the situational pertinence of MO adoption by SME owner-managers in the specific understudied spatial context of the primary sector of LDCs.
