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Journal of Hospitality & Tourism Research, Vol. 23, No. 4, 339-353 (1999)
DOI: 10.1177/109634809902300401

An Empirical Analysis of Entrepreneurship and Performance in the Restaurant Industry

Giri Jogaratnam

Eastern Michigan University, gjogaratnam{at}online.emich.edu

Eliza C. Tse

Virginia Polytechnic Institute and State University, tseet{at}vt.edu

Michael D. Olsen

Virginia Polytechnic Institute and State University, olsenmd{at}vt.edu

Two interrelated objectives of this article are to establish empirically the construct of entrepreneurial strategic posture and to ascertain the predictive validity of its relationship to performance. In doing so, the entrepreneurial strategic postures associated with high and low performance among independent restaurants are explored and contrasted. Performance was designated as the dependent variable, and the dimensions of entrepreneurial strategic posture were treated as the independent variables. Data were collected by means of a questionnaire mailed to a random sample of 1,500 owners/general managers. The results suggest that certain competitive methods and business practices are more strongly related to high performers than low performers. Exploring relationships between entrepreneurial strategic posture and performance is of value, and it is timely given the mature as well as increasingly complex and uncertain environmental conditions faced by entrepreneurs in today’s ever more competitive economy.

Key Words: entrepreneurial strategic posture • performance • restaurants


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