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The purpose of this paper is to explore the relationship between entrepreneurial orientation (EO) and firm performance across different levels of environmental hostility and market growth. The contingency approach of two-way interactions of EO with each environmental variable is contrasted with the configurational approach of three-way interactions of EO simultaneously with different levels of both environmental variables.

Hierarchical regression analysis is applied for the pooled data set of 163 Finnish and Russian small- and medium-sized enterprises, and supplemented with post hoc analysis of the differences in regression slopes across environmental configurations.

Results show that EO is directly and positively associated with firm performance. However, the strength and direction of this relationship varies by configurations of the external environment variables. Firms achieve superior performance when adopting EO in environments with high levels of both hostility and market growth. In contrast, in favorable environments with low hostility and high market growth, EO adoption leads to lower firm performance.

The study contributes to the EO literature by demonstrating different effects of EO on firm performance across various environmental configurations. It uses cross-sectional data from two countries. Replication studies using different samples may further corroborate the results.

In order to take advantage of opportunities and achieve better performance, managers of firms should analyze multiple elements of the environment concurrently and align EO to those conditions.

The configurations of environmental hostility and market growth, representing both favorable and unfavorable elements of business context, have not been previously investigated together in one model of the EO-performance relationship.

This study identifies and examines psychological and environmental factors that influence the long-term orientation of top management teams (TMTs).

Data on S&P 500 companies from 2011 to 2020 are collected from the Compustat database. Additional variables were measured through content analysis of earnings conference calls. This study used two-stage least squares regression with fixed effects to analyze the data and test the hypotheses. Appropriate diagnostic tests were conducted to ensure validity and eliminate endogeneity.

The results indicate that a chief executive officer’s (CEO) promotion focus positively and significantly influences the TMT's long-term orientation. However, the influence of prevention focus is statistically insignificant. Furthermore, the results indicate that environmental hostility moderates both relationships.

The TMT's long-term orientation can be improved through the insights provided by this study.

To the authors’ knowledge, this is the first study to examine the collective effects of psychological and task environmental factors on the long-term orientation of the TMT. Additionally, this study sheds light on the internal dynamics of the top-management team.

The purpose of this study is to understand how sustainability orientation influences economic, environmental and social sustainability performance and the moderating role of environmental hostility on these relationships. This study aims to deepen the consequences of the strategic commitment to sustainability of tourism firms located in the World Heritage Cities of Cusco, Lima and Arequipa in Peru.

The empirical analysis was conducted on a sample of 238 tourism firms. The authors implemented structural equation modelling technique to contrast the hypothesis.

The results shows that sustainability orientation has a positive effect on social and environmental performance mainly, but also on both financial and non-financial economic performance. The authors also detect a significant negative moderating effect of environmental hostility, which is accentuated in the case of social and economic-financial performance.

This study provides interesting practical implications in the tourism sector. Firms should develop a strategic commitment to sustainability, even in hostile environments, to improve their competitive position while reducing the negative impact of their activity on the natural and social environment. Institutions should encourage firms to commit to sustainability to achieve more sustainable and competitive urban tourism destinations.

This study advances the controversial debate on whether sustainability orientation of tourism firms leads to better economic performance. Moreover, from triple bottom line approach, it provides a holistic view of how sustainability orientation affects sustainability performance in all its dimensions. Finally, this paper delves into the complexities and challenges of sustainable urban tourism.

Innovative firms are generally more successful in both industrial and consumer markets. However, factors that make firms innovative are often elusive and complex. Looks at how strategic posture, organization structure, environmental hostility and uncertainty interact and how each factor contributes to an explanation of firm innovativeness. Suggests that strategic posture is a major factor determining the innovativeness of firms while organization structure mediates the effects of strategic posture, uncertainty, and hostility. Hence, for managers striving to make their firms more innovative, a prerequisite is to adopt a proactive strategic posture which gradually leads to a flexible organizations structure ‐ the two factors that have a direct effect in making firms more innovative.

While previous strategy research has provided significant attention to resource slack and its important roles in firm performance, particularly through strategic agility and flexibility in responding to environmental conditions, the majority of such theory and empirical work was developed for large business contexts. Therefore, the understanding of the relative contributions of absorbed and potential slack, particularly for resource-constrained small businesses, remains largely under theorized and unexamined. As many small businesses often face internal resource limitations, the ability to access external resources, in addition to internal resources, is likely significant, for firm performance, especially when small firms face high economic uncertainty. The paper aims to discuss these issues.

In this paper the authors utilize a data set from National Federation of Independent Business on small business economic trends. The sample consists of approximately 13,000 US-based small and medium businesses.

The findings highlight the importance of resource slack in firm performance offering general support for the applicability of classic management theories to the small business context. Environmental hostility and competitive intensity appear to positively moderate the observed relationship between both absorbed and potential resource slack and performance, but in different ways. Environmental hostility positively moderates the relationship between potential slack and firm performance, while competitive intensity positively moderates the relationship between absorbed slack and firm performance.

Because most classic theories in strategic management were only theorized for, and examined through, large organizations, entrepreneurship research should consider these potential limitations and carefully consider factors differing between large and small firms.

Business owners and managers should be aware that not all types of slack have equal performance implications. Absorbed slack is extremely valuable in highly competitive situation. Therefore, business owners should develop plans to recover absorbed slack during highly competitive situations as a defensive strategy. One the other hand, potential slack forces more accountability, which lowers the possibility of small firms using it to engage in price wars, but it is extremely valuable during worsening economic conditions.

In this paper the authors separate absorbed slack from potential slack conceptually and then test their individual effects on firm performance. Through this study, the authors establish boundary conditions for the important role of resource slack on performance through the moderating roles of environmental hostility and competitive intensity.

This study aims to examine the moderating effects of external environment and organisational structure in the relationship between business‐level strategy and organisational performance.

The focus of the study is on manufacturing firms in the UK belonging to the electrical and mechanical engineering sectors, and respondents were CEOs. Both objective and subjective measures were used to assess performance. Non‐response bias was assessed statistically and appropriate measures taken to minimise the impact of common method variance (CMV).

The results indicate that environmental dynamism and hostility act as moderators in the relationship between business‐level strategy and relative competitive performance. In low‐hostility environments a cost‐leadership strategy and in high‐hostility environments a differentiation strategy lead to better performance compared with competitors. In highly dynamic environments a cost‐leadership strategy and in low dynamism environments a differentiation strategy are more helpful in improving financial performance. Organisational structure moderates the relationship of both the strategic types with ROS. However, in the case of ROA, the moderating effect of structure was found only in its relationship with cost‐leadership strategy. A mechanistic structure is helpful in improving the financial performance of organisations adopting either a cost‐leadership or a differentiation strategy.

Unlike many other empirical studies, the study makes an important contribution to the literature by examining the moderating effects of both environment and structure on the relationship between business‐level strategy and performance in a detailed manner, using moderated regression analysis.

Realizing the value of social capital to small and medium enterprises (SMEs) in developing economies, where relationship networks play a big role in filling the gaps that are left by dysfunctional institutions, the purpose of this paper is to gain an empirical understanding of various forms of social capital in relation to the innovation of SMEs in Zimbabwe.

Primary data is collected from SMEs across several regions in Harare, where instrument validity is checked with confirmatory factor analysis, and hypotheses are tested using moderated regression analyses.

A positive influence is observed for both alliance capital and reputational capital on innovation, while non-significant moderating effects in terms of environmental hostility and dynamism are noted for these relationships

On a practical level, to increase levels of innovation, SME owner-managers need to secure stronger investments into their social infrastructure by developing (both physical and digital) alliance and reputational capitals

By segregating various forms of social capital, an original understanding is attained in terms of how entrepreneurs actively leverage alliance and reputational forms of social capitals to increase their levels of innovation. The theoretical and empirical understanding of the social capital-innovation link is enhanced, and the study constructs now have broader application as their psychometric properties have been established in an under-researched African market context.

Reassesses the relationships between managerial perceptions of movement and discontinuities in the environment, and managers’ abilities and proneness toward engaging in information‐gathering activities. Survey data from several organizations in different industries were collected to investigate the scanning behavior of managers. Finds empirical support for some of the relationships that were proposed. Explores possible explanations for the lack of support for several important relationships that have been advanced in the literature, and submits managerial implications and suggestions for future research based on the findings.

The purpose of this paper is to describe a qualitative study of small retailers, designed to uncover perceptions of resources which may be utilized to create competitive advantages and improve performance. The resource‐based view (RBV) of the firm has focused on large firms, and this study extends RBV to the small firm.

Using focus groups of small retailers within four communities in the USA, open‐ended questioning and discussions were utilized to help elicit responses about owner's resources.

The concepts of community brand identity, local social capital and environmental hostility (though not part of the original discussion guide), emerged as important constructs. Both community brand identity and social capital were articulated by focus group participants as resources which helped them to be successful. Brand identity was seen as important regardless of environment, while social capital emerged as a resource used more in hostile environments.

Brand identity and social capital are non‐economic resources which may help small retailers to compete in increasingly competitive environments. The RBV holds that to provide a competitive advantage, a firm's resources must be valuable, rare, imperfectly mobile and non‐substitutable. This qualitative study supports the conceptualization of brand identity and social capital as such resources.

Small business owners need to recognize the value of non‐monetary resources. Once these are recognized they can then be leveraged by the business owner to improve performance.

Few studies exist which apply the RBV to small firms. Only recently have scholars begun to operationalize constructs of the RBV. Researchers have not investigated social capital or brand identity as mitigators of environmental hostility. This study addresses each of these issues.

This paper aims to develop and test an integrative model of the relationship between affective conflict and firm performance considering the control effects of four contextual variables, namely, decision motive, firm size, type of ownership and environmental hostility.

This paper focuses on empirical data gathered from the Egyptian manufacturing sector. The measures of this study enjoy a significant degree of reliability and validity.

The results suggest that affective conflict is a significant predictor of firm performance.

The most serious limitation of the study is that data on the study variables are collected from one respondent in each firm. Another important limitation is that different kinds of conflict are not examined in order to explain the different roles which they can play in strategic decision making (SDM).

The paper contributes to knowledge in the area of SDM by developing a richer model of affective conflict in a region, i.e. Africa and the Arab world, where little research can be found.