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Understanding the role of entrepreneurial orientation in creating ambidextrous competitive advantage: a comparative-design, longitudinal study

Yen-Chun Chen (Department of International Business Administration, College of Business, Chinese Culture University, Taipei, Taiwan)
Todd Arnold (School of Marketing and International Business, Oklahoma State University, Stillwater, Oklahoma, USA)
Ping-Yu Liu (Department of International Business Administration, College of Business, Chinese Culture University, Taipei, Taiwan)
Chun-Yao Huang (Department of Business Administration, College of Management, National Taiwan University, Taipei, Taiwan)

European Journal of Marketing

ISSN: 0309-0566

Article publication date: 9 December 2022

Issue publication date: 4 January 2023

195

Abstract

Purpose

This research aims to investigate how entrepreneurial orientation influences a firm’s differentiation–cost advantage ambidexterity (DCAA) and performance indirectly through dynamic capabilities, while also investigating the impact of the interactive effect of the level and consistency of entrepreneurial orientation on dynamic capabilities. The goal of this study is to better understand the importance of consistently following an entrepreneurial orientation, as well as the linkage of such a consistently implemented strategy upon gaining both a cost and differentiation positioning enhancement.

Design/methodology/approach

Two empirical studies are conducted to test the proposed hypotheses – one longitudinal with multiple forms of data (i.e. text data, survey data and archival data) from 100 Taiwanese electronics firms and the other using primary data from a survey of senior managers.

Findings

Entrepreneurial orientation improves dynamic capabilities, which in turn promote superior DCAA and enhanced firm performance. In addition, as captured through a unique measure of consistency allowed through computer-aided text analysis, the results indicate that the effect of entrepreneurial orientation on dynamic capabilities is amplified when a firm consistently adopts entrepreneurial decisions and actions.

Research limitations/implications

The specific context was a sample of electronics firms in Taiwan. This limits the generalization of findings, as would be possible with assessing the hypotheses in other industries.

Practical implications

This research clearly demonstrates the significance of consistency in pursuing a strategic orientation. The consistent support and deployment of resources facilitates an organization’s achieving positive outcomes associated with an entrepreneurial orientation.

Originality/value

While entrepreneurial orientation contributes to firm performance, extant knowledge on the internal process through which entrepreneurial orientation affects performance is relatively limited. The findings not only highlight the full mediating role of dynamic capabilities and DCAA, but also shed light on the importance of consistency in entrepreneurial orientation over time.

Keywords

Acknowledgements

The authors are grateful to Robert W. Palmatier, Hauke Wetzel and Hsien-Tung Tsai for their valuable comments on an earlier version of the manuscript. In addition, this work was supported by the Ministry of Science and Technology of Taiwan [grant numbers 105-2410-H-034-016-] and [grant numbers 106-2410-H-034-008-MY2].

Citation

Chen, Y.-C., Arnold, T., Liu, P.-Y. and Huang, C.-Y. (2023), "Understanding the role of entrepreneurial orientation in creating ambidextrous competitive advantage: a comparative-design, longitudinal study", European Journal of Marketing, Vol. 57 No. 1, pp. 89-124. https://doi.org/10.1108/EJM-08-2021-0661

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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