Small business on small islands : exploring entrepreneurial orientation in SMEs in Malta

Abstract

This thesis aims to contribute to the fields of entrepreneurship and island studies by utilising the concept of Entrepreneurial Orientation (EO) and its five dimensions – innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy – in order to identify the most effective strategies for the survival and success of small island-based businesses. This study sheds light on SMEs based on small islands through the EO theoretical framework. Existing research suggests that having light- or non-weight products or services, and producing niche or tailor-made products and services, are appropriate, export-focused strategies for small island-based businesses. However, how such businesses cope with external changes, and the role of company-level entrepreneurship, have been left largely unexplored. Much of the existing EO literature is based on quantitative studies using three EO dimensions; however, such an approach finds it hard to answer ‘how’ and ‘why’ questions. This thesis seeks to fill these gaps through qualitative research using all five EO dimensions. This thesis addresses two research questions: (1) How did Malta’s island-specific challenges and external shocks shape EO in its SMEs? and (2) How did EO enable these SMEs to identify and exploit opportunities? To answer these questions, in-depth case studies were carried out in four SMEs in Malta. Data was gathered through multiple sources, including semi-structured interviews with 12 key informants (such as MDs/CEOs/Founders and managers), observations and desk research. This study has uncovered effective strategies for the survival and success of small island based businesses. Results suggest that, firstly, proactiveness and innovativeness play a vital role in identifying and exploiting opportunities as well as demonstrating entrepreneurship. Secondly, some (but not all) companies made use of the benefits of doing business on an island by utilising a sense of place and islandness in their branding. Thirdly, during the COVID-19 pandemic, companies displayed ‘creative reactiveness’, which was enhanced by the threat to their survival at that time.