Skip to main content
SpringerLink
Log in

Entrepreneurial Mindset and SMEs’ Sustainability

  • Chapter
  • First Online:
Organizational Mindset of Entrepreneurship

Abstract

The chapter aims to describe an entrepreneurial climate in small and medium enterprises (SMEs) in Bosnia and Herzegovina. The study is based on a qualitative approach, using interviews for data collection. It portrays the path way how the entrepreneurial mindset is created in SMEs. Each part of the path is elaborated in the way how this mindset is understood, established, and maintained throughout the entrepreneurial cycle. Interviewees are business owners or CEOs of SMEs who are competent to elaborate answers for asked questions. Results show that entrepreneurial mindset and spirit are created out of entrepreneurial orientation (EO) dimensions along with the internal marketing and networking. Contribution and other implications are further discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    http://www.investingradacac.ba

  2. 2.

    Župa is the term that means district.

  3. 3.

    http://www.bhtourism.ba/eng/gradacac.wbsp

  4. 4.

    http://investingradacac.ba/images/pdf/strategija/Izvjestaj_izvrsenje_2017.pdf

  5. 5.

    http://investingradacac.ba/images/pdf/0302/Brosura%20-%20Pregled%20industrijskih-privrednih%20zona.pdf

  6. 6.

    http://investingradacac.ba/images/pdf/strategija/Izvjestaj_izvrsenje_2017.pdf

References

  • Abebe, M. (2014). Electronic commerce adoption, entrepreneurial orientation and small- and medium-sized enterprise (SME) performance. Journal of Small Business and Enterprise Development, 21(1), 100–116. https://doi.org/10.1108/JSBED-10-2013-0145.

    Article  Google Scholar 

  • Aldrich, H. E., Jones, T. P., & McEvoy, D. (1984). Ethnic advantage of minority business development. In R. Ward & R. Jenkins (Eds.), Ethnic communities in business: Strategies for economic survival. Cambridge: Cambridge University Press.

    Google Scholar 

  • Aldrich, H. E., & Zimmer, C. (1986). Entrepreneurship through social networks. In D. L. Sexton & R. W. Smilor (Eds.), The art and science of entrepreneurship (pp. 3–24). Cambridge, MA: Ballinger.

    Google Scholar 

  • Bansala, H. S., Mendelson, B. M. B., & Sharma, B. (2001). The impact of internal marketing activities on external marketing outcomes. Journal of Quality Management, 6, 61–76. https://doi.org/10.1016/S1084-8568(01)00029-3.

    Article  Google Scholar 

  • Barringer, B. R., & Ireland, D. (2010). Entrepreneurship: Successfully launching new ventures (4th ed.). Upper River Saddle, NJ: Prentice Hall.

    Google Scholar 

  • Bass, B. M., & Avolio, B. J. (1992). Manual for the organizational description questionnaire (ODQ). Palo Alto, CA: Consulting Psychologists Press.

    Google Scholar 

  • Bass, B. M., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Mahwah, NJ: Center for Leadership Studies Binghamton University, Kravis Leadership Institute Claremont McKenna College, Lawrence Erlbaum.

    Book  Google Scholar 

  • Bičo, A., & Bajram, N. (2012). Economic policies for business: Case of Bosnia and Herzegovina. In 5th international scientific-technical conference business development 2012: Economic policy & business of small and medium enterprises, Zenica, BIH, 11/2012.

    Google Scholar 

  • Brettel, M., & Rottenberger, J. D. (2013). Examining the link between entrepreneurial orientation and learning processes in small and medium-sized enterprises. Journal of Small Business Management, 51(4), 471–490. https://doi.org/10.1111/jsbm.12002.

    Article  Google Scholar 

  • Brown, T. E., Davidsson, P., & Wiklund, J. (2001). An operationalization of Stevenson’s conceptualization of entrepreneurship as opportunity-based firm behavior. Strategic Management Journal, 22, 953–968.

    Article  Google Scholar 

  • Casillas, C. J., & Moreno, M. A. (2010). The relationship between entrepreneurial orientation and growth: The moderating role of family involvement. Entrepreneurship and Regional Development. An International Journal, 22(3–4), 265–291. https://doi.org/10.1080/08985621003726135.

    Article  Google Scholar 

  • Cooper, D. R., & Schindler, P. S. (2014). Business research methods (12th ed.). New York: McGraw-Hill.

    Google Scholar 

  • Covin, G. J., Green, K. M., & Slevin, P. D. (2006). Strategic process effects on the entrepreneurial orientation–sales growth rate relationship. Entrepreneurship Theory and Practice, 30(1), 57–81. https://doi.org/10.1111/j.1540-6520.2006.00110.x.

    Article  Google Scholar 

  • Covin, J. G., & Slevin, D. P. (1988). The influence of organization structure on the utility of an entrepreneurial top management style. Journal of Management Studies, 25(3), 217–234.

    Article  Google Scholar 

  • Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75–87.

    Article  Google Scholar 

  • Covin, J. G., & Slevin, D. P. (1991). A conceptual model of entrepreneurship as a firm behavior. Entrepreneurship Theory and Practice, 16, 7–25.

    Article  Google Scholar 

  • Dana, L. P. (1999). Business and entrepreneurship in Bosnia and Herzegovina. Journal of Business & Entrepreneurship, 11(2), 105–117.

    Google Scholar 

  • Dana, L. P. (2001). Introduction networks, internationalization and policy. Small Business Economics, 16(2), 57–62.

    Article  Google Scholar 

  • Dana, L. P. (2010). When economies change hands: A survey of entrepreneurship in the emerging markets of Europe from the Balkans to the Baltic States. New York: Routledge.

    Google Scholar 

  • Dana, L. P., & Dana, T. (2003). Management and enterprise development in post-communist economies. International Journal of Management and Enterprise Development, 1(1), 45–54.

    Article  Google Scholar 

  • Dana, L. P., Etemad, H., & Wright, R. W. (2000). The global reach of symbiotic networks. Journal of Euromarketing, 9(2), 1–16.

    Article  Google Scholar 

  • Dana, L. P., & Ramadani, V. (Eds.). (2015). Family business in transition economies. Cham: Springer.

    Google Scholar 

  • Dodani, S., & LaPorte, R. E. (2005). Brain drain from developing countries: How can brain drain be converted into wisdom gain. Journal of the Royal Society of Medicine, 98(11), 487–491.

    Article  Google Scholar 

  • Džafić, Z., Zahirović, S., Okiĉić, J., & Kožarić, A. (2011). Internal and external obstacles to the development of SMEs in Bosnia and Herzegovina. Croatian Economic Survey, 13(1), 143–171.

    Google Scholar 

  • Etemad, H., Wright, R. W., & Dana, L. P. (2001). Symbiotic international business networks: Collaboration between small and large firms. Thunderbird International Business Review, 43(4), 481–499.

    Article  Google Scholar 

  • Fayolle, A. (2007). Entrepreneurship and new value creation the dynamic of the entrepreneurial process (1st ed.). Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Fletcher, M. (1999). The effects of internal communication, leadership and team performance on successful service quality implementation. Team Performance Management: An International Journal, 5(5), 150–163.

    Article  Google Scholar 

  • Gë Rmenji, E., & Milo, L. (2011). Migration of the skilled from Albania: Brain drain or brain gain. Journal of Balkan and Near Eastern Studies, 339–357. https://doi.org/10.1080/19448953.2011.593339

    Article  Google Scholar 

  • Hernandez-Perlines, F. (2018). Moderating effect of absorptive capacity on the entrepreneurial orientation of international performance of family businesses. Journal of Family Business Management, 8(1), 58–74. https://doi.org/10.1108/JFBM-10-2017-0035.

    Article  Google Scholar 

  • Hindle, K. (2009). The relationship between innovation and entrepreneurship: Easy definition, hard policy. Paper presented at the 6th AGSE International Entrepreneurship Research Exchange, Adelaide, SA, Australia.

    Google Scholar 

  • Hindle, K. (2010). Skillful dreaming: Testing a general model of entrepreneurial process with a specific narrative of venture creation. Entrepreneurial Narrative Theory Ethnomethodology and Reflexivity, 1, 97–135.

    Google Scholar 

  • Kets de Vries, M. (1989). Leaders who self-destruct. Organizational Dynamics, 17(4), 5–17.

    Article  Google Scholar 

  • Kim, J. S., Song, H. J., & Lee, C. K. (2016). Effects of corporate social responsibility and internal marketing on organisational commitment and turnover intentions. International Journal of Hospitality Management, 55, 25. https://doi.org/10.1016/j.ijhm.2016.02.007.

    Article  Google Scholar 

  • Kraus, S. (2013). The role of entrepreneurial orientation in service firms: Empirical evidence from Austria. The Service Industries Journal, 33(5), 427–444. https://doi.org/10.1080/02642069.2011.622373.

    Article  Google Scholar 

  • Kraus, S., Rigtering, J. P. C., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: A quantitative study from the Netherlands. Review of Managerial Science, 6, 161–182. https://doi.org/10.1007/s11846-011-0062-9.

    Article  Google Scholar 

  • Krueger, N. (2000). The cognitive infrastructure of opportunity emergence. Entrepreneurship Theory and Practice, 24(3), 5–23.

    Article  Google Scholar 

  • Krueger, N. F. (2009). The microfoundations of entrepreneurial learning and… education: The experiential essence of entrepreneurial cognition. In G. P. West III, E. J. Gatewood, & K. G. Shaver (Eds.), Handbook of university-wide entrepreneurship education (pp. 35–59). Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Krueger, N., & Brazeal, D. (1994). Entrepreneurial potential and potential entrepreneurs. Entrepreneurship Theory and Practice, 18(3), 91–104.

    Article  Google Scholar 

  • Krueger, N., & Sussan, F. (2017). Person-level entrepreneurial orientation: Clues to the ‘entrepreneurial mindset’? International Journal of Business and Globalisation, 18(3), 382–395.

    Article  Google Scholar 

  • Lee, S. M., & Lim, S. (2009). Entrepreneurial orientation and the performance of service business. Service Business, 3, 1–13. https://doi.org/10.1007/s11628-008-0051-5.

    Article  Google Scholar 

  • Lee, C., Lee, K., & Pennings, J. M. (2001). Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22, 615–640. https://doi.org/10.1002/smj.181.

    Article  Google Scholar 

  • Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.

    Article  Google Scholar 

  • Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.

    Article  Google Scholar 

  • Mullens, D. (2018). Entrepreneurial orientation and sustainability initiatives in family firms. Journal of Global Responsibility, 9(2), 160–178. https://doi.org/10.1108/JGR-03-2017-0020.

    Article  Google Scholar 

  • Nurmi, R. (1996). Teamwork and team leadership. Team Performance Management: An International Journal, 2(1), 9–13. https://doi.org/10.1108/13527599610105484.

    Article  Google Scholar 

  • Odhiambo, G. O. (2013). Academic brain drain: Impact and implications for public higher education quality in Kenya. Research in Comparative and International Education, 8(4), 510–523.

    Article  Google Scholar 

  • Palalić, R. (2017). The phenomenon of entrepreneurial leadership in gazelles and mice: A qualitative study from Bosnia and Herzegovina. World Review of Entrepreneurship, Management and Sustainable Development, 13(2/3), 211–236.

    Article  Google Scholar 

  • Palalic, R., & Busatlic, S. (2015). Exploratory research on relationship between entrepreneurial orientation styles and business performance and growth of fast and slow growing small and medium enterprises in Bosnia and Herzegovina. International Journal of Business and Management, 10(2), 15–30.

    Article  Google Scholar 

  • Palalić, R., & Bičo, A. (2018). Entrepreneurship in Bosnia and Herzegovina. In R. Palalić, L. P. Dana, & V. Ramadani (Eds.), Entrepreneurship in former Yugoslavia: Diversity, institutional constraints and prospects. Heidelberg: Springer.

    Chapter  Google Scholar 

  • Palalić, R., Dana, L. P., & Ramadani, V. (Eds.). (2018). Entrepreneurship in former Yugoslavia: Diversity, institutional constraints and prospects. Heidelberg: Springer.

    Google Scholar 

  • Palalić, R., & Durakovic, B. (2018). Does transformational leadership matter in gazelles and mice: Evidence from Bosnia and Herzegovina? International Journal of Entrepreneurship and Small Business, 34(3), 289–308.

    Article  Google Scholar 

  • Palalić, R., Ramadani, V., & Dana, L. P. (2017). Entrepreneurship in Bosnia and Herzegovina: Focus on gender. European Business Review, 29(4), 476–496.

    Article  Google Scholar 

  • Ramadani, V. (2013). Entrepreneurship and small business in the Republic of Macedonia. Strategic Change, 22(7–8), 485–501.

    Article  Google Scholar 

  • Ramadani, V., & Dana, L. P. (2013). The state of entrepreneurship in the Balkans: Evidence from selected countries. In V. Ramadani & R. C. Schneider (Eds.), Entrepreneurship in the Balkans (pp. 217–250). Berlin: Springer.

    Chapter  Google Scholar 

  • Ramadani, V., Gërguri, S., & Fayolle, A. (2015). Female entrepreneurship in transition economies: Trends and challenges. London: Palgrave Macmillan.

    Book  Google Scholar 

  • Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x.

    Article  Google Scholar 

  • Rialti, R., Pellegrini, M. M., Caputo, A., & Dabic, M. (2017). Entrepreneurial education and internationalisation of firms in transition economies: A conceptual framework from the case of Croatia. World Review of Entrepreneurship, Management and Sustainable Development, 13(2/3), 290–313.

    Article  Google Scholar 

  • Rizvi, F. (2005). Rethinking “brain drain” in the era of globalisation. Asia Pacific Journal of Education, 25, 175–192.

    Article  Google Scholar 

  • Runyan, R., & Swinney, J. (2008). Entrepreneurial orientation versus small business orientation: What are their relationships to firm performance? Journal of Small Business Management, 46(4), 567–588. https://doi.org/10.1111/j.1540-627X.2008.00257.x.

    Article  Google Scholar 

  • Scarborough, N. M., & Cornwall, J. R. (2016). Essentials of entrepreneurship and small business management (8th ed.). Essex: Pearson.

    Google Scholar 

  • Schumpeter, J. A. (1934). Business cycles: A theoretical, historical and statistical analysis of the capitalist process. New York: McGraw-Hill.

    Google Scholar 

  • Slater, S. F., & Narver, J. C. (2000). The positive effect of a market orientation on business profitability: A balanced replication. Journal of Business Research, 48(1), 69–73.

    Article  Google Scholar 

  • Slevin, D. P., & Terjesen, S. A. (2011). Entrepreneurial orientation: Reviewing three papers and implications for further theoretical and methodological development. Entrepreneurship Theory and Practice, 35(5), 973–987.

    Article  Google Scholar 

  • Stevenson, H. H., & Jarillo, J. C. (1990). A paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal, 11, 17–27.

    Google Scholar 

  • To, W. M., Martin, E. F., Jr., & Yu, B. T. W. (2014). Effect of management commitment to internal marketing to employee work attitude. International Journal of Hospitality Management, 45, 14. https://doi.org/10.1016/j.ijhm.2014.11.002.

    Article  Google Scholar 

  • Venkatraman, N. (1989). The concept of fit in strategy research: Toward verbal and statistical correspondence. Academy of Management Review, 14(3), 423–444.

    Article  Google Scholar 

  • Wiklund, J. (1999). The sustainability of the entrepreneurial orientation–performance relationship. Entrepreneurship Theory and Practice, 24, 37–48.

    Article  Google Scholar 

  • Wiklund, J., & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: A configurational approach. Journal of Business Venturing, 20(1), 71–91. https://doi.org/10.1016/j.jbusvent.2004.01.001.

    Article  Google Scholar 

  • Zahra, S., & Covin, J. (1995). Contextual influence on the corporate entrepreneurship–performance relationship: A longitudinal analysis. Journal of Business Venturing, 10, 43–58. https://doi.org/10.1016/0883-9026(94)00004-E.

    Article  Google Scholar 

  • Zahra, S. A., Hayton, J. C., & Salvato, C. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship: Theory & Practice, 28(4), 363–381.

    Google Scholar 

Websites

Download references

Author information

Authors and Affiliations

  1. Faculty of Business and Administrations, International University of Sarajevo, Sarajevo, Bosnia and Herzegovina

    Ramo Palalić, Azra Branković & Azra Bičo

Authors
  1. Ramo Palalić
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Azra Branković
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Azra Bičo
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ramo Palalić .

Editor information

Editors and Affiliations

  1. South-East European University, Tetovo, North Macedonia

    Veland Ramadani

  2. International University of Sarajevo, Sarajevo, Bosnia and Herzegovina

    Ramo Palalić

  3. Montpellier Research in Management, Montpellier Business School, Montpellier, France

    Léo-Paul Dana

  4. Entrepreneurship Northwest, Boise, ID, USA

    Norris Krueger

  5. University of Lincoln, Lincoln, UK

    Andrea Caputo

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Palalić, R., Branković, A., Bičo, A. (2020). Entrepreneurial Mindset and SMEs’ Sustainability. In: Ramadani, V., Palalić, R., Dana, LP., Krueger, N., Caputo, A. (eds) Organizational Mindset of Entrepreneurship. Studies on Entrepreneurship, Structural Change and Industrial Dynamics. Springer, Cham. https://doi.org/10.1007/978-3-030-36951-4_4

Download citation

Publish with us

Policies and ethics

Search

Navigation