Applying entrepreneurial orientation to a medium sized firm

Abstract

Purpose

The purpose of this study is twofold. First, the authors aim to investigate the applicability of the five (EO) dimensions of autonomy, innovativeness, risk taking, proactiveness, and competitive aggressiveness to a medium‐sized firm. Second, the research seeks to explore firm processes leading to the development of entrepreneurial orientation (EO) in a medium‐sized domestic US firm. Thus, it endeavours to examine the applicability of EO dimensions as well as the processes by which EO arose in the focal company.

Design/methodology/approach

The authors use a multi‐method approach entailing analysis of archival data as well as semi‐structured interviews of executives to examine the applicability of EO dimensions as well as the processes associated with the development of EO to a medium sized firm competing in a Midwestern US market. Such an in‐depth analysis of one firm provides rich data, enabling the exploration of EO using qualitative methods.

Findings

While the medium‐sized domestic US business had high levels of autonomy and proactiveness, it exhibited moderate levels of innovativeness and risk‐taking, and only a low level of competitive aggressiveness. Furthermore, the analysis suggests that organizational artifacts facilitate the development of EO and support organizational culture. Specifically, the organizational artifacts of having an ESOP, a flat hierarchy, inter‐unit coordination, and customer communication facilitated EO, and reinforced the organizational culture aspects of empowerment, openness, teamwork, quality services, customer satisfaction, and adaptability.

Originality/value

This study is among the first to examine all five EO dimensions as well as to use qualitative methods to do so. It also illustrates how EO applies to medium‐sized firms, and identifies processes by which these dimensions develop.

Citation

Vora, D., Vora, J. and Polley, D. (2012), "Applying entrepreneurial orientation to a medium sized firm", International Journal of Entrepreneurial Behavior & Research, Vol. 18 No. 3, pp. 352-379. https://doi.org/10.1108/13552551211227738