Analyzing Social Entrepreneurship in Microfinance Banks: Connecting Entrepreneurial Orientation and Firm Performance

Abstract

The purpose of this study is to provide a better perceptive of the relationship between entrepreneurial orientation and firm performance in microfinance banks located in Pakistan by evaluating the mediating impact of social entrepreneurship between entrepreneurial orientation and firm performance. This study contributes in entrepreneurial orientation and firm performance link and proves to be the first attempt to address the need of SE as an underlying mechanism. Data was collected from the senior management of microfinance banks in Pakistan. A total of 53 respondents ware collected from 10 MFBs. This study uses SPSS as statistical software and adopts Multiple Linear Regression to test the mediated relationship. The result shows that the direct effect of entrepreneurial orientation and firm performance is significant while indirect effect is insignificant which needs further investigation. The study is limited with primarily low sample size and the deficient measure of time accessible to examine the issue and accumulate information.