Exploring the Impact of Entrepreneurial Characteristics on Organizational Performance: A Study of Registered Handloom Industry Owners in Gampaha District of Sri Lanka

Abstract

The handloom industry in Sri Lanka plays a vital role in cultural preservation and rural economic development. However, due to increasing competition and low technological adoption, the sector faces significant performance challenges. Entrepreneurial characteristics are therefore essential for driving organisational performance and competitiveness in such traditional industries. This study examines how achievement orientation, power motivation, and planning behaviour influence the organisational performance of registered handloom industry owners in the Gampaha District, which was selected because it represents a major cluster of registered handloom enterprises contributing significantly to the Western Province economy. A quantitative research design was adopted, and data were collected through structured questionnaires administered to 108 registered handloom industry owners. Data were analysed using SPSS, and the results confirmed high reliability (Cronbach’s alpha > 0.70 for all constructs). Pearson correlation analysis showed a significant positive relationship between entrepreneurial characteristics and organisational performance (r = 0.69, p < 0.05). Multiple regression analysis revealed that achievement orientation (β = 0.42, p < 0.05) had the strongest influence, followed by planning behaviour (β = 0.31, p < 0.05) and power motivation (β = 0.28, p < 0.05), together explaining 61.4% of the variance in organisational performance. The findings indicate that enhancing entrepreneurial characteristics can strengthen performance, sustainability, and innovation within the handloom industry. This study provides valuable insights for policymakers, industry associations, and entrepreneurs to develop training and capacity-building programmes that foster entrepreneurial effectiveness. Future research is encouraged to expand geographically and apply longitudinal designs to better understand the evolving dynamics of entrepreneurship in traditional sectors.