Kirznerian and Schumpeterian entrepreneurial‐oriented behavior in turbulent export markets

Abstract

Purpose

The purpose of this paper is to shed light on the mechanisms by which entrepreneurial‐oriented behaviours (EOB) enhance international business performance. In so doing, the authors demonstrate that different dimensions of EOB may need to be emphasized or dampened, depending on the environmental conditions facing the firm.

Design/methodology/approach

A survey of 783 Finnish exporters is undertaken, and the relationships between the dimensions of EOB and business performance are assessed.

Findings

It is found that Kirznerian manifestations of EOB have stronger positive relationships with export profits when markets are relatively stable, whereas Schumpeterian manifestations of EOB have stronger positive relationships with export profits when markets are more dynamic.

Research limitations/implications

The study has implications for researchers studying multidimensional strategic orientations. The approach adopted is novel, in that instead of adopting a fully aggregated or fully disaggregated approach to the study of a strategic orientation, the authors use a theoretically derived partial aggregation approach. As a result, EOBs are grouped into two kinds, and the latter are shown to behave differently with respect to relationships with performance outcomes. The study limitations include single source data and its cross‐sectional design.

Practical implications

When markets are relatively stable, businesses need to emphasize the Kirznerian manifestations of EOB (i.e. display high levels of competitive aggressiveness and proactiveness) and downplay Schumpeterian manifestations of EOB (i.e. reduce innovativeness, risk taking and autonomy). However, in highly dynamic markets, managers should focus on Schumpeterian manifestations of EOB at the expense of Kirznerian EOB.

Originality/value

This paper introduces Schumpeterian and Kirznerian entrepreneurial behavior in an international marketing context, and analyses the effects of these activities on international performance under varying levels of environmental turbulence.

Citation

Sundqvist, S., Kyläheiko, K., Kuivalainen, O. and Cadogan, J.W. (2012), "Kirznerian and Schumpeterian entrepreneurial‐oriented behavior in turbulent export markets", International Marketing Review, Vol. 29 No. 2, pp. 203-219. https://doi.org/10.1108/02651331211216989