Islamic Work Ethics and Entrepreneurial Orientation: Empirical Evidence from Private Small and Medium Enterprises in Yemen
Keywords:
Islamic Work Ethics, Entrepreneurial Orientations, Small and Medium-Sized Enterprises, Canonical Correlation, YemenAbstract
This study investigated the relationship between Islamic work ethics and entrepreneurial orientation in small and medium-sized companies in Yemen. Despite Islam’s encouragement for financial independence and self-employment, entrepreneurial levels remain low in Islamic countries. This contradiction highlights the need to understand how Islamic work ethics influence entrepreneurial behavior. The main objective of this study was to measure the relationship between Islamic work ethics and entrepreneurial orientation in small and medium entrepreneurial organizations in Yemen. A quantitative research approach was adopted, and cross-sectional data were collected from 137 owners and managers of small and medium-sized enterprises (SMEs) in the cities of Sana'a, Al-Hudaidah, and Taiz. Canonical correlation analysis was used to test the relationship between the subdimensions of Islamic work ethics effort at work, honesty at work, teamwork practice, and accountability practice and the subdimensions of entrepreneurial orientation, innovativeness, proactiveness, and risk-taking. The results showed very strong and significant correlations between the two constructs. Each subdimension of Islamic work ethics demonstrated a strong relationship with the entrepreneurial orientation dimensions. These findings align with previous literature on the role of ethics in shaping motivation, performance, and innovation. This study provides important implications for small business owners and policymakers by recommending ways to strengthen and utilize Islamic work ethics to enhance entrepreneurship culture. The originality of this study lies in its use of a multidimensional approach to both Islamic work ethics and entrepreneurial orientation within the context of Yemeni SMEs, filling a gap in existing research and offering valuable practical and theoretical insights.
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