The Impact of Technology, Entrepreneurship and Consumer Attitudes On Firm Performance

POLISH JOURNAL OF MANAGEMENT STUDIES 2021
Alheet A. F., Hamdan Y., AL-Bazaiah S. A. Vol.23 No.1
THE IMPACT OF TECHNOLOGY, ENTREPRENEURSHIP

AND CONSUMER ATTITUDES ON FIRM PERFORMANCE
Alheet A. F., Hamdan Y., AL-Bazaiah S. A.
Abstract: The study aims to examine the influence of technological advancement,
entrepreneurial orientation and change in consumer attitude on the firm performances of Small
and Medium-sized Enterprises (SMEs) based in the UK. By reviewing previous literature, it has
been noted that all of these variables are linked with firm performance. However, it is important
to know whether the relationships hold in the context of UK-based SMEs. Thus, this research
contributes to the existing scholarship by statistically addressing the case of SMEs operating in
the UK while focusing on technology, entrepreneurship and consumer attitudes. The study has
adopted a quantitative methodology with a descriptive and a correlation design and a sample
size of 145 employees belonging to different industries. It applies frequency analysis,
correlation and regression analysis to analyse the results. The study found that there is a
significant positive effect of technology advancements, entrepreneurial orientation and
consumer attitudes on firm performance at 0.05 level. The results also showed that SMEs in the
UK need to focus on the three factors to grow and improve their competitiveness.
Keywords: Technological advancement, Entrepreneurial orientation, Customer attitude, Firm
performance, SMEs, UK.
DOI: 10.17512/pjms.2021.23.1.02
Article history:
Received March 04, 2021; Revised April 28, 2021; Accepted May 09, 2021
Introduction
Small and Medium Enterprises (SMEs are the backbone of a country's economy, as
reported by Lidya (2019). Factor like technology determines how far SMEs will
progress over time. From laptop computers with Internet capabilities to online file
storage, Web-based applications and printers, technological changes impact SMEs
across various industries (Brookins, 2019). Technology has the potential to SMEs in
adverse and positive ways; the result depends on the objectives of a corporation, the
products that the company chooses to apply, and how good the employees and the

Ahmad Fathi Alheet Associate Prof., Yacoub Hamdan Prof., Sakher A. AL-Bazaiah
Assistant Prof., Al-Ahliyya amman university ,business school, AL-balqa Applied
University,Business School
corresponding author: [email protected]
[email protected], [email protected]
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2021 POLISH JOURNAL OF MANAGEMENT STUDIES
Vol.23 No.1 Alheet A. F., Hamdan Y., AL-Bazaiah S. A.
managers familiarise themselves with the new systems (Chege, Wang and Suntu,
2019).
Companies are said to have Entrepreneurial Orientation when they manifest and
support entrepreneurial behaviour frequently enough so that this behaviour can be used
to define organisational attributes and characteristics (Covin and Wales, 2019). As an
organisational attribute, Entrepreneurial Orientation portrays a company's managerial
decision-making practices, strategic behaviour and philosophies (Anderson, Covin and
Slevin, 2009). According to Wales (2016), Entrepreneurially-oriented companies
exhibit and support a continued design of new entry over a period, which is generally
characterised by risk-taking, innovativeness and proactiveness. In addition to the
factors mentioned before, some other dimensions may be assessed, such as isolation or
in aggregate according to Covin and Wales (2012); nonetheless, some scholars have
also recommended measuring both individual and aggregate effects for determining the
Entrepreneurial Orientation of a company (Miller, 2011; Wales, 2016).
Customers are arguably the most important stakeholders of a business, as the
customer's contribution, whether high or low, determines the success of an
organisation (Poudel, Carter and Lonial, 2018). A change in consumer attitude is likely
to change the way a company conducts its business. If the consumer target market is
more inclined towards high technology, the company will have to adjust accordingly
(Oke, Burke and Myers, 2007). An example can be noted of the company Nokia,
which failed to comply with the changing consumer attitude and was subject to hefty
losses. Therefore, it is recommended that the companies keep track of the latest social
trends and requirements of the consumers to develop products/services accordingly
(Muhonen, Hirvonen and Laukkanen, 2017).
SMEs are significantly important for the United Kingdom (UK), as their parliament
recognised 5.7 million SMEs operating in the nation, which make up 99% of business
overall (Rhodes, 2018). SMEs in the UK have fewer than 250 employees, and they are
different from other countries, such as the USA, where a company with 500 employees
will also be considered an SME (Labs, 2019). SMEs in the United Kingdom are known
to have an annual turnover of less than £40 Million. There are usually two types of
SMEs present in the United Kingdom, according to FSB (2019); firstly, there are
household industries or traditional cottage industries; these types of industries are
generally found in rural or semi-urban areas (Hall, 2018). The second type of
companies is known as 'Modern SMEs', which are innovative with technology playing
a significant role in their operations; these companies generally provide solutions to
old problems (Rhodes, 2018; FSB, 2019).
The present study aims to determine the influence of Technological Advancement,
Entrepreneurial Orientation and Change in Consumer Attitude on the firm performance
24
of SMEs based in the UK. It is observed that the influence of Technological

Advancement, Entrepreneurial Orientation and Change in Consumer Attitude on firm
performance has been explored individually, and the conclusive explanation in the
context of the UK is also lacking (Poudel, Carter and Lonial, 2018; Tajeddini, 2010;
Sohoo and Yadav, 2017). Therefore, the objective of the present study is to understand
the previous literature regarding the topic and analyse the topic statistically by
conducting a survey.
Literature Review
SMEs have to work closely with their clients to provide the services or products that
add value for the consumers (Brookins, 2019). Providing a product or service, which
started from a general idea, requires the business employees to collaborate and external
vendors (Chege, Wang and Suntu, 2019). Instant messaging and E-mail started the
revolution of online collaboration and sharing. With the capability of connecting
instantly, getting feedback and share information, instant messengers and e-mail are
valuable technological assets for SMEs (Brookins, 2019). Web-based project
management programs enable the SMEs to keep track of their projects, update
information about team members and clients, delegate tasks, share documents, and
track time in real-time (Chege, Wang and Suntu, 2019). Through these tools, a central
hub can be created for companies where all information is available regardless of an
employee's location.
Technology advancement gives an opportunity to SME employers and employees to
work from home, from the road and even from across the country (Seidel, 2019). This
allows SME employers the opportunity to hire capable candidates from all over the
globe; technology can thus help the business gain a competitive advantage in the world
market. An example of this technology use can be observed when the established USA
firms hire cheaper staff from countries like India for their customer service department
(Ross, 2014). Technology has enabled businesses to connect with consumers directly
via social network, blogs and E-mail. The SMEs can take advantage of this by gaining
instant feedback from the consumers and applying them to their firm as they see fit
(Seidel, 2019).
The online store added usage brought by the technological revolution presents a great
opportunity for SMEs (Poudel, Carter and Lonial, 2018). Clothing, accessories,
crafting and painting companies can benefit from the online stores greatly. Consumers
have shifted massively towards e-commerce in recent years in the UK; this also saves
money for SMEs for setting up many physical stores (O'Dea, 2019). Through online
stores, small businesses can reach a far greater market than their area. Employee
training is also affected through technology; while the new employees will embrace the
25
technology in training, the old and aged employees may feel reluctant (Brookins,
2019).
Technological advancements have also allowed SMEs to preserve their sensitive
consumer or business information by providing secure online platforms (Seidel, 2019).
The productivity of the employees can be improved from technological advancements.
The modern software allows the employees to access more information than manual
modes (Ross, 2014). The employers can also reduce the number of labours required,
thus making the costs of the company lower. The managers can track the activity of the
employees via an online portal and decide the bonuses and other benefits accordingly
(Durowoju, 2017).
Apart from the benefits discussed above, some drawbacks of technology regarding
firm performance are also evident. Although the internet is a good opportunity for a
business to itself, nonetheless, some issues arise, such as maintaining a website, search
engine optimisation, staying up to date with the changes in the technology and dealing
with customer inquiries (Kooser, 2015). Issues may be faced while updating the
technological aspects of the company, as the things related to technology get outdated
over time; therefore, the company has to bear with additional costs (Poudel, Carter and
Lonial, 2018).
Based on the identified advantages and disadvantages of technological shifts, the
current study formulates the following hypothesis to be tested:
H1: There is a significant relationship between Technology Advancement and Firm
Performance
Entrepreneurial orientation is among one of the most established and important topics
in the domain of managerial inquiry and entrepreneurship. The essentiality of
entrepreneurial orientation to the performance and survival of companies has been
recognised in numerous entrepreneurship-related literature (Shan et al., 2016; Hult et
al., 2003; Covin and Slevin, 1986). Emphases have been on assessing the association
between firm performance and Entrepreneurial orientation since there is a belief that
organisations with stronger Entrepreneurial orientation achieve much more than those
companies that do not implement an Entrepreneurial orientation approach (Wiklund &
Shepherd, 2003; Tat et al., 2007). Companies with a high level of Entrepreneurial
Orientation tend to constantly monitor and scan the operating environment that they
are in to discover new strengths and opportunities to gain a competitive advantage
(Sahoo and Yadav, 2017). Most of the researches have been conducted to examine the
positive influence of Entrepreneurial Orientation on firm performance (Sahoo and
Yadav, 2017).
Entrepreneurial orientation is the process that defines the entrepreneurs' traits in an
organisation, such as risk-taking, proactiveness and innovativeness (Al-Dhaafri et al.,
26
2016). Entrepreneurial orientation describes the organisational level, which supports

entrepreneurial decisions and procedures through the action of strategy-making of the
SME (Wiklund & Shepherd, 2003). Entrepreneurial orientation includes a readiness to
search for risks, be more aggressive and proactive, innovate, and take self-directed
actions than competitors toward new market prospects (Jiang et al., 2016). Hence,
Entrepreneurial Orientation can somewhat describe strategic managerial behaviours
that allow the firm to gain a competitive advantage by being more open to innovations,
proactive of market opportunities, and tolerant to risk (Sahoo and Yadav, 2017).
Hence, from a wide-ranging review of previous studies, it can be concluded that
Entrepreneurial Orientation has been enlisted through 5 proportions, namely:
proactiveness, competitive aggressiveness, innovativeness, autonomy and risk-taking
(Sahoo and Yadav, 2017). Thus, entrepreneurial orientation can be important for SMEs
to realise new tactical opportunities and compete with other companies. If SMEs have
more capacity for proactiveness, competitive aggressiveness, innovativeness,
autonomy and risk-taking, they will likely accomplish higher firm performance and
gain a more significant competitive advantage (Shan et al., 2016).
The traditional idea of entrepreneurial activity or entrepreneurship has been regarded
as a one-time act that involves the creation of a new venture, service or product; or an
act the creatively destructs or challenges existing services/products (Tajeddini, 2010).
Today, rather than an event that creates value, entrepreneurship is more viewed as a
process that is rooted in the culture of an organisation's culture that helps to exploit an
opportunity (Hult et al., 2003).
Building on the importance given to entrepreneur, the current study has developed the
following hypothesis to be tested:
H2: There is a significant relationship between Entrepreneurial Orientation and Firm
Performance.
The production and operations conducted by any firm are for consumers at the end of
the value chain (Fitzsimmons, 1985). Therefore, a company needs to know consumers'
attitude towards their brand to determine the improvements that need to be made
(Oirere, 2015). If a consumer's attitude changes towards a brand in a negative way,
then the company's performance will be altered, as the firm's workers will feel that
their efforts are not being rewarded (Clark and Saxberg, 2019). The company's
management has the responsibility to change the course of operations in case of
negative feedback from the consumers (Poudel, Carter and Lonial, 2018). If an SME is
underselling its products, then it should consider changing the tactics to change the
consumer attitude towards the company in a positive way (Tajeddini, 2010). To change
the consumer attitude, the management should be responsible for consumer
perceptions, as it defines the standing of the company in the eyes of the users (Clark
27
and Saxberg, 2019). 90% of the buys are deemed impulsive; therefore, if a brand has a
decent image in the view of the consumers, then they will be inclined towards buying
from that brand (Forbes, 2018). If the consumer perception about the company
improves, so does the performance level of the firm, as the employees will be more
encouraged by the positive influence (Clark and Saxberg, 2019). Following the
findings of Clark and Saxberg (2019), the current study tests the below-outlined
hypothesis:
H3: There is a significant relationship between Change in Consumer Attitude and Firm
Performance
To analyse the changing consumer attitude, the SMEs can compile relevant data to
interpret from the study of Long (2019). Surveys can be conducted to determine the
cause of a negative change in consumers' attitude; it can be determined through a
survey whether the negative influence is due to a product, operation or employee
(Forbes, 2018). Once the reasons for the negative change in attitude are found, then a
plan of action should be set up; these plans of actions may include changing the
product or service style, employee training or cultivating customer loyalty etc. (Long,
2019). Numerous companies try to reach customers through emotional marketing to
change their attitude towards the firm (Rahman, Yaacob and Radzi, 2016). Research by
well-known psychologist Daniel Kahneman determined that most of the decision-
making by consumers in purchasing is driven by subconscious shortcuts and irrational
(Forbes, 2018). However, in a huge number of cases, emotional marketing campaigns
have been unsuccessful. Emotional advantages only work if the emotional aspects are
rooted in the company's product or service experience (Long, 2019).
Making changes is likely to be costly for SMEs; however, in the long run, the plan of
action may prove to be beneficial (Kooser, 2019). Sharing of information within the
company is important; the correct information should be conveyed to the responsible
parties to make them perform better in order to improve the consumer attitude towards
the brand (Rahman, Yaacob and Radzi, 2016). Information sharing could help an
employee perform better, a customer service representative provides better services
and makes the marketing team more effective, etc. (Poudel, Carter and Lonial, 2018).
After the relevant measures are taken, the level of success should be measured; this
measuring of success can lead the company to greater objectives and gain the company
consumer loyalty (Oirere, 2015).
The entrepreneurial orientation of a company is determined by the competency of the
managers to implement innovation in their value chain (Shan et al., 2016). Efficient
ways of conducting business are developed from a progressive value chain (Muhonen,
Hirvonen and Laukkanen, 2017). Therefore, the link between Entrepreneurial
Orientation and Technological advancement is formed through innovation. One of the
28
key factors of being innovative today is using technology to gain a competitive

advantage (Tsai, 2004). SMEs with Entrepreneurial orientation can use technology
advancements by using efficient methods to conduct their operations, such as online
project management systems, online stores, advanced manufacturing machines, etc.
(Poudel, Carter and Lonial, 2018).
Technological advancements and change in consumer attitude have a very prominent
linkage (Carter, 2019). How well a company utilises technological advancements
determines the consumers' attitude towards the firm (Beall, 2017). Companies, that fail
to adapt to technological changes, often end up on the negative side of the consumer
attitude (Carter, 2019). Examples can be noted of companies Kodak and Nokia that
failed to comply with the advancing technology and lost their market in the process.
Whereas Entrepreneurial orientation and change in consumer attitude are not directly
linked; however, they may be linked through the quality of the product or service
(Wales, 2013). If implementing an entrepreneurial orientation improves the quality of
the product or service, then the consumer attitude will change positively and vice versa
(Poudel, Carter and Lonial, 2018).
Further, there are theoretical frameworks that have rationalised the relationship
between the variables used in the hypotheses. Firstly, the linkage between
Entrepreneurial Orientation and Firm performance is established in Figure 1. The study
by Zehir, Can, and Karaboga (2015) states that the five elements of Entrepreneurial
orientation, i.e. proactiveness, competitive aggressiveness, innovativeness, autonomy
and risk-taking, have an impact on innovation performance and differentiation strategy,
which in turn influence the Firm performance.
Figure 1: Link between Entrepreneurial Orientation and Firm Performance

Source: Zehir, Can and Karaboga (2015)
29
In figure 2, it is shown that Technological innovation or advancement has an influence

on Firm Performance; this theory has been suggested by Wang, Cheng and Shen
(2015). As established in the literature above, technological advancement directly
impacts firm performance (Chege, Wang and Suntu, 2019).
Figure 2: The link between Technology advancement and Firm performance

Source: Wang, Cheng and Shen (2015)
Furthermore, the theory of planned behaviour links the change in consumer attitude
and firm performance. This theory is used as it states that the characteristic of a
company, such as intention, determines the behaviour of a consumer (Martin, 2017).
In light of the above theories and literature review, the research framework for the
present study as per the authors’ view is formed as:
Figure 3: Conceptual Framework
30
The conceptual framework of the study proposes a significant impact of technology

advancement, entrepreneurial orientation and change in consumer attitude on firm
performance in UK-based SMEs. It further assumes a positive impact on the outcome,
i.e. greater technological advancement, more focus on entrepreneurship and change in
consumer attitude to improve SMEs performance.
Methodology
In this section, the research approach and design, along with the sampling size and data
collection techniques, are defined. The hypotheses are also discussed in this section.
The present study examines the influence of Technological Advancement,
Entrepreneurial Orientation and Change in Consumer Attitude on firm performance
through a quantitative study. The selection of quantitative study was made since the
cause and effect relationship is analysed between the variables. According to
Williamson et al. (2018), a quantitative study relies on numerical data to measure
various statistical tools. A Positivist research philosophy has been applied; numerous
authors have stated that positivist philosophy helps a researcher in accomplishing
suitable research design, objectives and aims (Antwi and Hamza, 2015; Blaxter,
Hughes, and Tight, 2010; Saunders, Lewis, and Thornhill, 2016). Therefore, with the
adoption of the positivist philosophy, data was investigated concerning the causal
relationship among the present study variables. To sum up, positivist philosophy with a
quantitative approach has been used to solve the research problem.
The research design for the present study is mixed, with both descriptive and
correlational designs applied. A descriptive design includes description and
observation of behaviour with no influence on it. Descriptive design is adopted in the
present study in order to enable the collection of data via questionnaires. Previous
studies on the topic have also been based on a descriptive design (Adam, Mahrous and
Kortam, 2017; Durowoju, 2017; Oke, Burke and Myers, 2007). Correlational design is
mainly used in the present study is to provide statistical evidence for the research
objectives (Cohen, Manion and Morisson, 2013).
The sampling size chosen in this study is 145 (i.e., 145 respondents for the survey). In
the model by Cohen (1992), at least 59 respondents must be chosen if there are three
associations in the research framework. 59, is deemed low by the researcher; therefore,
145 employees operating in different UK-based SMEs, operating in multiple
industries/sectors, are chosen to find conclusive evidence. Initially, the research
targeted more than 200 respondents; however, complete and correct responses were
received only from 145 respondents.
31
The data is collected through a multiple-item questionnaire survey, which enables the
researcher to gain the latest and first-hand knowledge regarding the topic (Emilien,
Weitkunat, and Lüdicke, 2017). The sampling technique used is convenience; through
this method, the most convenient respondents are reached, and the data is collected
without much hassle (Etikan, Musa and Alkassim, 2016). The sample population, as
indicated above, are the employees of SMEs in the UK. After the collection of data,
appropriate tests are applied using statistical tools to determine the influence of the
three predictors on firm performance.
The ethical values are related to the standards of methodology, which the researchers
adopt to gather the data. Since the present research is primary, ethical issues may arise
(Halej, 2017). The present study collects data from the respondents voluntarily;
moreover, no sensitive personal information is collected from the respondents, while
the respondents are made aware of the impact that this present study. Furthermore,
regarding ethical consideration, all the relevant authors are given credit for their work
by using appropriate referencing.
Results and Discussion

This section intends to present detailed insight on the influence of Technological
Advancement (TA), Entrepreneurial Orientation (EO), and Change in Consumer
Attitude (CA) on the firm performance (FM) of SMEs based in the UK. For this
purpose, the chapter first discusses the respondents’ characteristics and the frequency
analysis of each of the four research variables. Furthermore, the second part of the
chapter addresses the research question of the study by presenting the correlation and
regression analysis.
In total, 145 employees have responded to the circulated questionnaire survey. Out of
which, it has been found that 84 of them were female while 61 were male participants.
Further, the majority of the respondents (55 out of 145) were aged between 38 and 47
years, while 46 of them revealed to be between age 58 and 67 years. Moreover, 31 of
them were found to be between 48 and 57 years. 5 and 8 employees who responded to
the survey questions were aged between 28 and 37 years and 68 years and above.
When asked about which industry they belong to, the majority of the respondents
reflected to be from manufacturing SMEs while 21 indicated to be from retail
companies. 52 of them belonged to an IT firm while only 17 of the totals reflected to
be from 'other' industry type.
Lastly, the respondents revealed that the majority of them earn between the range of
£10,000 and £35,000 that is 42% of the total. It is followed by the £35,000 - £50,000
income range.
32
Technological Advancement
In the case of technological advancement, the study of Siedel (2019) indicates that it
facilitates SME employers and employees to work from home or from any part of the
world. There were mainly three statements under this head. The 108 respondents
believe that having continuous technological change improves their company's internal
communication system. Furthermore, 99 of the totals also indicated that the use of
technology in their business has made the employees a lot more productive and
efficient. Lastly, 105 participants strongly agreed that this technology has mainly
brought ease of work for their company and has largely improved the processes.
Table 1. Technological Advancement

Strongly Disagree Neutral Agree Strongly Total
Disagree Agree
Having continuous 1 1 14 21 108 145
technological
advancement in your
company improves
communication within
the organisation.
The use of technology 2 2 18 24 99 145
makes employees more
efficient.
Technology has brought 2 1 12 25 105 145
ease of work process for
the company
Entrepreneurial Orientation
According to Al-Dhaafri et al. (2016), Entrepreneurial Orientation is a process that
describes the traits of the entrepreneurs in terms of their risk-taking behaviour,
proactiveness and innovativeness. It is organisational-level support towards the
entrepreneurial decisions and processes with the help of the SME's strategic actions
(Wiklund & Shepherd, 2003). Hence, in the case of this variable, three statements on
the Likert scale had been added to the questionnaire. Around 82 employees of SME's
strongly agree that freedom is given by the managers for innovation and efficient
production of their firm. In addition, 81 respondents strongly believe that the
organisation's risk-taking ability has a better chance of success, while 38 of the totals
33
agree with the statement. Lastly, it has also been found that 84 and 36 of the
respondents strongly agree and agree that being proactive in their firm can often lead to
situations that give solutions to a future problem.
Table 2. Entrepreneurial Orientation

Disagree Agree
In your company, the 1 4 18 40 82 145
freedom given by
managers to innovate
increases the efficiency
of the organisation.
The risk-taking ability of 1 4 21 38 81 145
your organisation gives a
better chance of success.
Being proactive in your 1 4 20 36 84 145
organisation can often
lead to situations that
give solutions to future
problems.
Change in Consumer Attitude

It has been found in the literature that in case there is a change in the attitude of the
consumers, there are great chances of changes in the performance of the company
(Clark and Saxberg, 2019). Hence, in the case of this research variable, the three
statements on the Likert scale have been asked to the survey participants. The results
from the same indicate that 65 of them strongly believe that having a negative change
in consumer attitude makes the employees of their organisation feel less motivated. At
the same time, 61 of the totals also strongly agree that the consumer perception of their
organisation mainly boosts the innovativeness among the employees. Furthermore, the
majority of the respondents strongly agree that the work processes of their firms
usually cause a change in consumer attitude.
34
Table 3. Change in Consumer Attitude

Disagree Agree
Having a negative 3 14 24 39 65 145
change in consumer
attitude makes the
employees of your
organisation feel less
motivated.
Knowing consumer 1 16 26 41 61 145
perception of your
organisation increases
the innovativeness of the
employees.
The work procedure of 3 14 27 41 60 145
your organisation causes
a change in consumer
attitude.
Firm Performance
In order to measure the firm performance, there are three statements asked in the
questionnaire. The results from the same indicate that 64 of the respondents strongly
agree and 39 agree, and there is an increase in sales after the innovation of the product
and services. Furthermore, 71 of the 145 participants strongly believed that
appreciation was given to the employees' creativity often result in a rise in the
company's overall production. Lastly, 99 of the total respondents indicated that
changes in the attitude of the consumers had increased the number of customers for the
company.
Table 4. Firm Performance

Strongly Strongly
Disagree Neutral Agree Total
Disagree Agree
Sales have increased after
innovating a method of
3 14 25 39 64 145
production or service in
your organisation.
35
In your company after

encouraging employees to
be creative, the number of 6 6 33 29 71 145
products or services has
increased.
Change in consumer
attitude has increased or
decreased the number of 1 6 16 34 88 145
customers for your
company.
To assess the relationship between TA, EO, CA and FM, the following table for
Pearson correlation has been extracted. Based on the found results, the test results are
significant at the 0.01 level of significance. It can be interpreted as the significant
positive relationship between technological advancement and the firm's performance
with a coefficient of 0.318, indicating a weak association. Similarly, in the case of the
relationship between entrepreneurial orientation and firm performance, the test results
are also found significant and reflect a coefficient of 0.361. Moreover, the relationship
between change in consumer attitude and firm performance is also found to be
significant and reflects a strong association between the two variables with a
correlation coefficient of .792.
Table 5. Correlations
Technologica Entrepreneuria Change Firm
l l Orientation in Performanc
Advancemen Consume e
t r Attitude
Technological Pearson 1 0.157 .205* .318**
Advancement Correlatio
n
Sig. (2- 0.060 0.013 0.000
tailed)
N 145 145 145 145
Entrepreneuria Pearson 0.157 1 .253** .361**
l Orientation Correlatio
n
Sig. (2- 0.060 0.002 0.000
36
tailed)
N 145 145 145 145
Change in Pearson .205* .253** 1 .792**
Consumer Correlatio
Attitude n
Sig. (2- 0.013 0.002 0.000
tailed)
N 145 145 145 145
Firm Pearson .318** .361** .792** 1
Performance Correlatio
n
Sig. (2- 0.000 0.000 0.000
tailed)
N 145 145 145 145
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
For assessing the influence of the independent variables (TA, EO, CA) on the
dependent variable (FM), the linear regression model has been formulated using
regression analysis. The results from the same indicate that the fitted model is found to
be significant at the 0.01 level and confirms the combined impact of all three variables
on the firm's performance of SMEs. Moreover, the r-square value of 0.675 reflects that
the model explains 67.5% variation in the performance of SMEs due to changes in the
independent variables.
Table 6. Model Summary

Model R Square Adjusted R Square Std. Error of the Estimate
1 0.675 0.668 0.44761
ANOVA
Model F Sig.
1 Regression 97.601 .000b
a. Dependent Variable: Firm Performance
b. Predictors: (Constant), Change in Consumer Attitude, Technological
Advancement, Entrepreneurial Orientation
37
Moreover, in the case of the individual impact, each predictor variable's beta
coefficient reveals to be significant at the 0.01 level. In the case of technological
advancement, the beta of 0.167 shows that a unit change in this variable will ultimately
change the performance of the firm by 0.167. On the other hand, a beta of EO shows a
value of 0.142, suggesting that a 0.142 variation is expected in the FM due to changes
in the company's EO. Moreover, in the case of the changes in consumer attitudes, the
beta of 0.531 indicates the strongest individual impact of consumer behaviour on the
performance of SMEs.
Thus, the study is able to reject each of the above null hypotheses and accepts the
alternate.
Table 7. Coefficients
Model Unstandardised Standardised t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 0.651 0.302 2.155 0.033
Technological 0.167 0.056 0.146 2.953 0.004
Advancement
Entrepreneurial 0.142 0.046 0.156 3.117 0.002
Orientation
Change in Consumer 0.531 0.037 0.723 14.344 0.000
Attitude
a. Dependent Variable: Firm Performance
These findings are aligned with the literature findings, as studied in previous chapters.
Several other authors have also confirmed the strong positive relationship of TA, EO,
CA with FM (Sahoo and Yadav, 2017; Seidel, 2019; Poudel, Carter and Lonial, 2018;
Clark and Saxberg, 2019).
Conclusion
The research has examined the influence of technological advancement,
entrepreneurial orientation and change in consumer attitude on SMEs' firm
performances based in the UK. In this regard, a considerable number of studies have
been reviewed in this research, highlighting the importance of these variables on firm
performance. Further, theoretical frameworks are included to elucidate how firm
performance is affected. In order to achieve the objective of the research, a quantitative
research approach was adopted using correlation and descriptive research designs with
38
a sample size of 145 employees. With the help of the appropriate methodology, the
results are obtained, which are in accordance with the hypotheses set by the
researchers. It is found that there is a significant positive relationship between
technological advancement and firm performance. Similarly, in the case of the
relationship between firm performance and entrepreneurial orientation, a significant
relationship is observed. In addition, the association between firm performance and
change in consumer attitude is also found to be significant and show a strong
relationship between the two variables. Therefore, technology, entrepreneurship and
consumer attitude, all three variables are relevant to firm performance. Thus, these
variables should be given importance by UK-based SMEs.
Moreover, the results also provide managerial implications for SMEs to realise the
importance of integrating new trends of technology within their operations for higher
customer satisfaction. For example, many small businesses have emerged their online
platforms instead of being physically present in a region (Smith, 2020). Accordingly,
this saves them fixed costs until their operations expand to afford them and
simultaneously benefit from the integration of technology in the initial period (Smith,
2020). UK's SMEs can follow the same trend to include technological advancements
on a low budget within their operations. Also, the fact that entrepreneurial orientation
is so closely related to firm performance; it is deduced that individual's with certain
skills and competencies, such as innovativeness, risk-taking ability and having a pro-
active nature, should be hired by SMEs to enhance the business performance. Further,
it can also be deduced that individuals with such capabilities can opt to start-up their
businesses, which will be profitable in the near future.
Other recommendations for SMEs to perform successfully and maintain their position
among the giant multinationals are the use of advanced technology within the new
realm of industry 4.0, as opined by Lampropoulos, Siakas Anastasiadis (2019);
Priyono (2016). The authors explain that even though investing in tools like IoT
(Internet of Things), cloud computing, artificial intelligence, and other machine
learning algorithms of data analytics incurs a huge cost. However, this cost is a one-
time payment to sustain longer companies (Lampropoulos, Siakas and Anastasiadis,
2019). This also helps SMEs increase their prominence among other industry players
by catering to customer needs and strategically implementing operations based on
customer trends and market preferences. Further, through increasing use of ICT, such
as WhatsApp, companies can successfully structure their projects towards success
(Priyono, 2016).
Another article in the journal of Scientific Papers Economics and Sociology also
explained SMEs' importance in regional developments (Zumbusch and Scherer, 2013).
Therefore, the government should increasingly provide incentives to entrepreneurs
39
trying to start their businesses, especially when it is in the ICT domain (Zumbusch and
Scherer, 2013). Finally, as for the entrepreneurs, the study of Mohamed, Ibrahim and
Shah (2017) indicated that women entrepreneurs are significantly striving for success
and empirically linked firm performance with women's entrepreneurial orientation as
they plan and organize before implementing strategies executing operations. This
shows the increasing trends of women independently working to build their businesses.
Hence entrepreneurs are advised to plan before investing in anything strategically.
Even though the current study provides a number of empirical implications for SMEs'
managers, it should be noted that the study's scope is focused on UK-based SMEs only.
This limits the study to include comparative analysis with other regions for robust
findings. Other limitations are related to the methodology of the study, which perceives
the relationship between main variables objectively and fails to define why such a
relationship exists. Hence future studies in the same domain are recommended to
expand the scope of their study and focus on more than one region. Furthermore, future
studies are also recommended to view the same topic subjectively for qualitative
analysis.
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WPŁYW TECHNOLOGII, PRZEDSIĘBIORCZOŚCI I POSTAW

KONSUMENTÓW NA DZIAŁALNOŚĆ FIRM
Streszczenie: Badanie ma na celu zbadanie wpływu postępu technologicznego, orientacji

przedsiębiorczej i zmiany nastawienia konsumentów na wyniki firm małych i średnich
przedsiębiorstw (MŚP) z siedzibą w Wielkiej Brytanii. Przeglądając poprzednią literaturę,
zauważono, że wszystkie te zmienne są powiązane z wynikami firm. Jednak ważne jest, aby
wiedzieć, czy relacje te utrzymują się w kontekście brytyjskich MŚP. W ten sposób badanie to
wnosi wkład do istniejącego stypendium poprzez statystyczne odniesienie się do przypadku
43
MŚP działających w Wielkiej Brytanii, koncentrując się na technologii, przedsiębiorczości

i postawach konsumenckich. W badaniu przyjęto metodologię ilościową z projektem opisowym
i korelacyjnym oraz próbą liczącą 145 pracowników z różnych branż. Wykorzystuje analizę
częstotliwości, analizę korelacji i analizę regresji do analizy wyników. Badanie wykazało, że na
poziomie 0,05 istnieje istotny pozytywny wpływ postępu technologicznego, orientacji na
przedsiębiorczość i postaw konsumenckich na wyniki firm. Wyniki pokazały również, że MŚP
w Wielkiej Brytanii muszą skupić się na trzech czynnikach, aby się rozwijać i poprawiać swoją
konkurencyjność.
Słowa kluczowe: postęp technologiczny, orientacja na przedsiębiorczość, nastawienie klienta,
wydajność firmy, MŚP, Wielka Brytania.
技术，企业家精神和消费者态度对企业绩效的影响
摘要：该研究旨在检验技术进步，企业家取向和消费者态度的变化对总部位于英国的中小
型企业（SME）公司业绩的影响。通过回顾以前的文献，已经注意到所有这些变量都与企业
绩效相关。但是，重要的是要了解这种关系是否适用于总部位于英国的中小企业。因此，
这项研究通过统计解决在英国经营的中小型企业的案例，同时侧重于技术，企业家精神和
消费者态度，为现有奖学金做出了贡献。这项研究采用了具有描述性和相关性设计的定量
方法，并从145个样本中抽取了来自不同行业的员工。它应用频率分析，相关性和回归分析
来分析结果。研究发现，技术进步，企业家取向和消费者态度对企业绩效在0.05水平上具
有显着的积极影响。结果还表明，英国的中小企业需要关注三个因素来发展和提高竞争力
。
关键字：技术进步，创业导向，客户态度，企业绩效，中小型企业，英国。
44

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POLISH JOURNAL OF MANAGEMENT STUDIES 2021

Alheet A. F., Hamdan Y., AL-Bazaiah S. A. Vol.23 No.1

THE IMPACT OF TECHNOLOGY, ENTREPRENEURSHIP

of SMEs based in the UK. It is observed that the influence of Technological

2016). Entrepreneurial orientation describes the organisational level, which supports

key factors of being innovative today is using technology to gain a competitive

Figure 1: Link between Entrepreneurial Orientation and Firm Performance

In figure 2, it is shown that Technological innovation or advancement has an influence

Figure 2: The link between Technology advancement and Firm performance

Figure 3: Conceptual Framework

The conceptual framework of the study proposes a significant impact of technology

Results and Discussion

Table 1. Technological Advancement

Table 2. Entrepreneurial Orientation

Change in Consumer Attitude

Table 3. Change in Consumer Attitude

Table 4. Firm Performance

In your company after

Table 6. Model Summary

WPŁYW TECHNOLOGII, PRZEDSIĘBIORCZOŚCI I POSTAW

Streszczenie: Badanie ma na celu zbadanie wpływu postępu technologicznego, orientacji

MŚP działających w Wielkiej Brytanii, koncentrując się na technologii, przedsiębiorczości

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