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Entrepreneurial Orientation and Performance: The Effect of Organizational Commitment and Budgetary Support

aGulf University for Science and Technology, Kuwait
bButler University, USA
cMonash University, Malaysia
dPontificia Universidad Catolica Valparaíso, Chile

Advances in Accounting Behavioral Research

ISBN: 978-1-80455-799-0, eISBN: 978-1-80455-798-3

Publication date: 13 March 2023

Abstract

The objective of the study is to understand the relationship between entrepreneurial orientation (EO), employers' organizational commitment to their employees (OCE), employees' perception of the adequacy of budgetary resources (BRs), and firm performance in Malaysian and Chilean firms. A survey of 165 managers finds that EO has a significant positive relationship with performance. Additionally, the perceptions about the adequacy of the BR have a significant positive effect on performance. And in the Chilean subsample, the OCE interacts positively with perceptions of budget resource adequacy to affect the firm performance. The total effect of EO on performance is similar across both countries despite the EO being higher in Malaysia and perceptions of budget resource adequacy being higher in Chile. The study highlights the contribution to the literature on the EO – performance relationship – and emphasizes the importance of providing adequate resources to enhance the psychological safety of employees working in less developed countries.

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Acknowledgements

Acknowledgments

We acknowledge and thank David Cardemartori and Orlando Gonzales Daniel for the help they provided in translating the survey instrument to Spanish and in collecting the Chilean data. Additionally, we would like to thank Monash University Malaysia – School of Business and Pontificia Universidad Catolica Valparaíso – Escuela de Comercio for their financial support.

 We thank the two reviewers for their helpful comments, and the editor for giving us the opportunity to extensively revise and resubmit the chapter.

Citation

Mahenthiran, S., Mackoy, R., Terpstra-Tong, J.L.Y. and Morales, L.J. (2023), "Entrepreneurial Orientation and Performance: The Effect of Organizational Commitment and Budgetary Support", Karim, K.E. (Ed.) Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 26), Emerald Publishing Limited, Leeds, pp. 169-194. https://doi.org/10.1108/S1475-148820230000026007

Publisher

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Emerald Publishing Limited

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