Walden University

College of Management and Technology

This is to certify that the doctoral study by

Joseph Wilder

has been found to be complete and satisfactory in all respects,

and that any and all revisions required by

the review committee have been made.

Review Committee

Dr. Franz Gottleib, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer and Provost

Sue Subocz, Ph.D.

Walden University

2021

STRATEGIC ENTREPRENEUSHIP AND ORGANIZATIONAL PERFORMANCE OF

NEWLY OPENED RESTAURANTS.
INTRODUCTION

Background of the Study

Strategic Entrepreneurship (SE) is typically defined as organizationally consequential

innovations within existing firms that involve the combination or integration of opportunity- and

advantage-seeking behaviors. It is focused on the transforming the organizations through

innovation that is according to Agarwal, R., Audretsch, D., & Sarkar, M. (2010).

Internationally, the restaurant industry has seen some of the most notable changes caused

by the COVID-19 pandemic. Dining rooms are closed to customers. Carryout and delivery are

the new normal. Some businesses have been forced to close their doors. Some are operating at

only 50% capacity, and still have a hard time finding enough staff to work. Having enough

people for each shift is a constant struggle. And bringing in extra hands means that they are

always training new hires. Some new hires have restaurant experience – and some donnot.

Training takes time and it also takes extra hands.

For a long time, the Philippines was known to be one of the countries that still practiced cash-

based transactions and adhered mainly to brick-and-mortar shops. Restaurants and fast food

chains are not excused. COVID-19 however, has forced the country to embrace the digital

world. By then, it became the trend and online ordering system is now popular.

1.Literature Review
Nowadays, the factors that can influence the success or failure of a business are becoming more

complex and stronger. The path to business prosperity is by no means simple or easy, quite the

opposite. The operational capabilities of a company are not sufficient or indicative of future success,

because without a well-defined strategy and appropriate control to the reality in which it will operate, it

is likely to be overwhelmed by the enormous challenges of the market andsurrounding competition.

1.1 Strategy

All companies aspire to succeed, seek to achieve the objectives outlined for the short, medium

and long term, and for this purpose a growth strategy must be stipulated. Associated with growth is the

concept of strategy, because growth is the goal and strategy is the meansto achieve that same goal.

Strategy can be broadly defined as a structured plan that consolidates, in an integrated way, the

objectives, policies and actions of an organization (Freire, 1997) and is therefore the meansto

reachsuccess. Within a business context, sustained value addition derives from wealth creation for the

shareholdersby meeting internal and external needs (Freire 1997). Therefore, it can be assumedthat the

strategy should relate the objectives and business performance properly framed inthe internal and

external factors.

1.2.Strategic Plan

Planning is the first phase of the administrative function, as it delimits the objectives that the

administration wants to achieve, as well as the way to achieve them. We can then
understand that this is the first step of the management process, followed by organization, direction and

finally control, as mentioned in Silva (2009). The concept of strategic planning emerged in the late 1950s

from the previous century, driven by Mintzberg. According to Machado & Taylor (2010), strategic

planning has become increasingly relevant in the business environment. Companies in a market that is

often too competitive seek, through strategic planning, to obtain competitive advantages, that is,

advantages that make them unique in the market in order to distinguish themselves from others.

1.3 Business Idea

The starting point of this project was acknowledging that, nowadays, eating out and making food at

home on a daily basis has become a hard task, as there is less time and availability to do so, especially

when trying to be healthier. Everyone is getting busier and busier, with less time for the day-to-day life

and domestic tasks, and consumers are now relying more on food services that can satisfy these types of

needs. On the other

hand, the increasing lack of time, along with some economic uncertainties, creates a paradox that is

currently experienced due to not having time to make meals at home and not having the financial

availability to consume food services all the time.

Statement of the Problem

Generally, the purpose of the study is to determine the strategic entrepreneurship and

organizational performance of newly opened restaurants. Specifically, it sought to answers the

following questions:

1.1 What is the demographic profile of the respondents in terms of sex and years of operation?

1.2 What is the strategic entrepreneurship of the newly opened restaurants?

1.3 What is the organizational performance of the newly opened restaurants?

Is there a relationship between strategic entrepreneurship and organizational performance?

Strategic
Entrepreneurship
• Entrepreneurial Organizational
Orientation Performance
• Planning Flexibility
• External
Environment

Conceptual Framework

Independent Variable Dependent Variable

Operational Definitions

Business failure: This term is an owner’s decision to discontinue the business as an outcome of a

real or projected performance inferior to his or her satisfaction (Khelil, 2016).

Business success: Business success is a business or firm with sustainable profits for 5 or more years (SBA,

2016b). Entrepreneur: An entrepreneur is an individual who is an innovator pursuing a desire toward a

positive outcome (Arend, 2015)

Assumptions, Limitations, and Delimitations

Assumptions are perspectives that researchers believe as truth but not received verification

(Marshall & Rossman, 2016). In my attempt to explore business strategies that small business restaurant

owners use to sustain their businesses, I needed to make several assumptions. The first assumption was

that a case study was an appropriate design to explore the strategies required for new and existing small

businesses to become sustainable beyond 5 years. The second assumption was that the participants

would provide truthful feedback in response to interview questions. The third assumption was that

conducting this research study in Connecticut would ensure a geographical area large enough to provide

sufficient data.

Limitations

Limitations are barriers, weaknesses, or restrictions encountered during the research process that the

researcher cannot control (Marshall & Rossman, 2016). A limitation of this study was the focus on

business owners in the restaurant industry.

Delimitations

Delimitations refer to the bounds that researchers establish to control the scope of the study

(Marshall & Rossman, 2016). The first delimitation of this study was the focus on small restaurants with

employees fewer than 500, as highlighted by SBA guidelines (SBA, 2016a).

 Instrumentation

The study used an adopted questionnaire as the main tool in gathering the data. It is

composed of three parts. The first part was the demographic profile respondents consisted the

sex and years of operations. The second part of the questionnaire included the strategic while the

third part of the questionnaire contained the organizational performance the business.,

Treatment of Data

Descriptive statistical tools such as tables, frequency count, percentage, Standard

Deviation (SD), mean, and Pearson-r were be used in the analysis and interpretation of the study.

For the first problem which is the demographic profile, frequency count and percentage was used

to represent the data. For the second third problems, SD and mean were used to describe how

varied their responses are and their agreement on the statements pertaining to strategic

entrepreneurship and organizational performance.

CHAPTER III

RESULTS
 This chapter presents the tabulated data of the survey. The results are presented in tabular

forms with proper interpretations. It also discusses the highest and lowest mean and in every

table.

Table 1. Demographic Profile of the Respondents.

Frequency Count Percentage

Sex
Male 15 50
Female 15 50
Total 30 100
Years of
Operation
Less than 1 year 4 50
1-2 years 3 37.5
More than 2 years 1 12.5
Total 8 100

The table presents the demographic profile of the respondents. There were thirty

respondents in the study composed of 50% male and 50% female. Eight newly opened restaurant

were considered in the survey in which 4 were still less than a year in operation, 3 were 1-2 years

and only 1 was already more than 2 years in operation.

Table 2. Strategic Entrepreneurship of Newly Opened Restaurant
STRATEGIC ENTREPRENEURSHIP SD Mean Description

Entrepreneurial Orientation

In general, the top managers of my firm favor …

1. A strong emphasis on the marketing of tried and true

products and services
0.73 4.27 Strongly Agree

2. Low risk projects with normal and certain rates of return 0.67 3.87 Agree

3. A cautious, 'wait and see' posture in order to minimize

the probability of making costly decision when faced
with uncertainly

0.65 4.10 Agree

4. Owing to the nature of the environment , it is best to

explore gradually via cautious behavior
0.65 4.20 Agree

Overall SD/Mean 0.68 4.11 Agree

Planning Flexibility

1. There is emergence of a new technology 0.70 4.10 Agree

2. There is a need to shift in customer needs and

preferences 0.77 4.00 Agree

3. There is political developments that affect your industry 0.99 3.50 Agree

4. There are changes in government regulations 1.07 3.30 Moderately Agree

Overall SD/Mean 0.88 3.73 Agree

External Environment
1. The external environment our firm operates in has a high
level of risk and uncertainty.
0.94 3.30 Moderately Agree

2. The external environment poses serious threats to our

firm's survival and well-being.
0.88 3.57 Agree

3. Our firm must deal with a wide range of external

environment influences (e.g., competitive, political,
social/cultural, or technologic).

0.86 3.70 Agree

4. Declining markets for products are a major challenge in

our industry.
0.85 3.53 Agree

5. Tough price competition is a major challenge in our

industry.
0.98 3.80 Agree

Overall SD/Mean 0.90 3.58 Agree

GRAND SD/MEAN 0.82 3.81 Agree

Scale Range Description

5 4.21 - 5.0 Strongly Agree

4 3.41-4.20 Agree

3 2.60-3.40 Moderately Agree

2 1.80-2.60 Disagree

1 1.0-1.80 Strongly Disagree

Table 2 shows the strategic entrepreneurship of newly opened restaurant. This is divided

into three areas namely entrepreneurial orientation, planning flexibility and external

environment. For the first area, item 1 or a strong emphasis on the marketing.
 ORGANIZATIONAL PERFORMANCE SD Mean Description

Working Environment

1. You are satisfied with the working space at the

office/working place (discussion room, operation and
hall).

0.60 4.37 Strongly Agree

2. You are satisfied with the facility and equipment

provides by organization.
0.59 4.30 Strongly Agree

3. The company provides the right equipment to do a job

done well.
0.73 4.27 Strongly Agree

4. The noise level at workplace is tolerated. 1.15 3.77 Agree

5. My company located at a strategic location. 0.79 4.20 Agree

Overall SD/Mean 0.77 4.18 Agree

Training and Development

1. You are satisfied with the training you received from

the organization.
0.74 4.30 Strongly Agree

2. The training helps you to perform better job. 0.55 4.60 Strongly Agree

3. Training is important and gives advantages to me. 0.84 4.40 Strongly Agree

4. You always participate/involve in training that are

organized by company.
0.89 4.27 Strongly Agree

Overall SD/Mean 0.76 4.40 Strongly Agree

Management

1. I am free to give opinion about company management. 1.04 4.10 Agree

2. My company management team has a good Agree

performance. 1.07 4.17

3. You have a good relationship with your manager. 1.06 4.27 Strongly Agree

4. Manager team gives a good feedback to any kind of

compliant.
1.01 4.33 Strongly Agree

5. You are satisfied with your company management Strongly Agree

team. 1.01 4.33

Overall SD/Mean 1.04 4.24 Strongly Agree

GRAND SD/MEAN 0.82 4.30 Strongly Agree

 Table 3 presents the organizational performance of newly opened restaurants.This is

divided into four areas namely staff motivation, working environment, training and development

and lastly management. For the first area, item 5 or my employer cares about my welfare got the

highest mean of 4.50 which is described as Strongly Agree. The item with the lowest mean is

item 4 or there are good staffs in my work unit (in terms of co-operation, friendly and good

teamwork among work unit) with the mean of 4.30 but still described as Strongly Agree. For the

second area, item 1 or you are satisfied with the working space at the office/working place

(discussion room, operation and hall) got the highest mean of 4.37 which is described as

Strongly Agree while item 4 or The noise level at workplace is tolerated got the lowest mean of

3.77 which is described as Agree.

Moreover, for the third area item 2 or the training helps you to perform better job got the

highest mean of 4.60 which is interpreted as Strongly Agree. The item with the lowest mean for

this area is item 4 or you always participate/involve in trainings that are organized by company

got the mean of 4.27 but still described as Strongly Agree. Lastly, for the last area the items with

the highest mean are item 4 or manager team gives a good feedback to any kind of compliant and

item 5 or you are satisfied with your company management team with the mean of 4.33 which is

described as Strongly Agree. On the other hand, item 1 or I am free to give opinion about

company management got the lowest mean of 4.10 which is described as Agree.

In summary, the Grand SD and Mean for organizational performance are 0.82 and 4.30

respectively which is described as Strongly Agree.

Conclusion
 Considering the results and findings of this study, the researchers came up with the

following conclusions:

1. Small-time businesses like the newly opened restaurants do not focused on outside

competitions but rather on minimizing the cost in making uncertain decisions.

2. Employee satisfaction does not merely depend on the size of the business whether it is

big or small, local or national in scope, newly operating or existing for many years, but it is on

the attention and compensation they received from their employers.

3. Strategic entrepreneurship can greatly affect the performance of the business. Thus,

managers must be knowledgeable enough in applying the right strategies that suit the business.

Recommendations

For further studies and improvements of this endeavour, the researchers recommend the

following:

1. Expand the scope of the study and include nearby with a great number of restaurants.

2. Include customer satisfaction survey as one of the variables in order to assess the

product and services of the newly opened restaurants.

 3. Compare the different managerial approaches applied the mangers in the operation of

their business and how it impacts their sales and operations.

References

Agarwal, R., Audretsch, D., & Sarkar, M. (2010). Knowledge spillovers and strategic

entrepreneurship. Strategic Entrepreneurship Journal, 4(4), 271–283.