Investigating The Impact of Innovativeness and Proactiveness on Family-Owned Restaurants Performance In Ilorin, Kwara State, Nigeria

Abstract

Abstract In today's dynamic business environment marked by market volatility, resource constraints, and increasing consumer demands, entrepreneurial orientation particularly innovativeness and proactiveness have become crucial, especially in developing economies. This study investigates how these dimensions influence the performance of family-owned restaurant businesses in Ilorin, Kwara State, Nigeria. A quantitative cross-sectional survey was conducted, targeting registered family restaurants. Due to the lack of an official registry, the population was treated as infinite, and a sample of 384 respondents was determined using Taro Yamane's formula. A multi-stage sampling technique, involving stratified and systematic random sampling, was adopted to ensure representativeness. Data were gathered using structured questionnaire and analysed with Partial Least Squares Structural Equation Modelling (PLS-SEM) via Smart PLS. The findings revealed a significant positive relationship between innovativeness and business performance (p < 0.05), aligning with the Resource-Based View (RBV) that intangible assets like innovation offer competitive advantage. However, proactiveness showed no significant effect (p = 0.944) and even had a slight negative influence (beta = -0.018), suggesting misaligned anticipatory actions may not benefit resource-constrained family firms. The study concludes that while innovativeness enhances performance, proactiveness alone may be insufficient. Promoting customer-centric innovation and digital adoption could improve competitiveness. This research adds to entrepreneurial orientation literature by highlighting contextual influences on family business success in emerging markets.