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Resource organization and firm performance: How entrepreneurial orientation and management accounting influence the profitability of growing and non-growing SMEs

Jim Andersén (School of Business, University of Skövde, Skövde, Sweden)
Joachim Samuelsson (School of Business, University of Skövde, Skövde, Sweden)

International Journal of Entrepreneurial Behavior & Research

ISSN: 1355-2554

Article publication date: 6 June 2016

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Abstract

Purpose

The purpose of this paper is to examine how entrepreneurial orientation (EO) and the use of management accounting practices (MAPs) in decision making affects the profitability of small- and medium-sized enterprises (SMEs), and also to analyze the extent to which EO and the use of MAPs affects profitability differently in growing and non-growing SMEs.

Design/methodology/approach

The paper employs an empirical investigation which is based on a sample of 153 Swedish manufacturing SMEs. The data are analyzed by two- and three-way interaction regressions.

Findings

EO and MAPs have a positive effect on profitability in non-growing SMEs, but the combined effect of EO and MAPs has no additional effect. However, for growing SMEs, high usage of MAPs in decision making is a prerequisite for EO to influence profitability.

Originality/value

This study is the first to use the resource-based view to examine the relationship between two dimensions of resource organization and SME profitability. EO is used as a proxy for how resources are organized in order to identify opportunities, and MAPs are used as a proxy for how efficiently resources are organized.

Keywords

Citation

Andersén, J. and Samuelsson, J. (2016), "Resource organization and firm performance: How entrepreneurial orientation and management accounting influence the profitability of growing and non-growing SMEs", International Journal of Entrepreneurial Behavior & Research, Vol. 22 No. 4, pp. 466-484. https://doi.org/10.1108/IJEBR-11-2015-0250

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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