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Entrepreneurial orientation (EO) has emerged as a core concept in the field of entrepreneurship. Yet, there continue to be questions about the nature of EO and how best to…
Entrepreneurial orientation (EO) has emerged as a core concept in the field of entrepreneurship. Yet, there continue to be questions about the nature of EO and how best to conceptualize and measure it. This chapter makes the case that EO has grown beyond its roots as a firm-level unidimensional strategy construct and that a new multidimensional version of EO is needed to capture the diverse manifestations and venues for entrepreneurial activity that are now evident around the world – global entrepreneurial orientation (GEO). Building on the five-dimension multidimensional view of EO set forth when Lumpkin and Dess (1996) extended the work of Miller (1983) and Covin and Slevin (1989, 1991), the chapter offers an updated definition of EO and a fresh interpretation of why EO matters theoretically. Despite earnest efforts to reconcile the different approaches to EO, in order to move the study of EO and the theoretical conversation about it forward, we maintain that as a group of scholars and a field, we need to acknowledge that two different versions of EO have emerged. Given that, we consider original approaches to measuring EO, evaluate formative measurement models, consider multiple levels of analysis, call for renewed attention to EO configurations, and discuss whether there is a theory of EO.
The present study examines entrepreneurship in established firms holistically and critically. The authors start by reviewing previous research and highlight a variety of…
The present study examines entrepreneurship in established firms holistically and critically. The authors start by reviewing previous research and highlight a variety of definitional, conceptual, methodological, contextual, and temporal factors that have been confounding the research. The authors then present a multidimensional framework that specifies a more nuanced picture of the determinants, motives, activities, and consequences of corporate in established firms. Finally, the authors discuss conceptual, methodological, and practical implications, as well as outline future research avenues.
The concept of entrepreneurial orientation (EO) attracts considerable attention in the organizational literature. Focusing on issues related to measurement of EO and using…
The concept of entrepreneurial orientation (EO) attracts considerable attention in the organizational literature. Focusing on issues related to measurement of EO and using a three-pronged framework to organize the growing diversity of EO measures, the authors conduct a systematic literature review on how EO is captured and assessed in the empirical literature. Specifically, the authors classify 551 empirical works according to the approach to measurement (i.e., managerial perceptions, content analysis, and resource allocations) which allows the authors to document and critically analyze prevalent measurement practices within the literature. Based on the synthesis, the authors identify key measurement-related tensions that may inhibit cumulative knowledge development in the area of EO, such as ad hoc modification of seminal scales and lack of theoretical clarity with respect to measurement. Additionally, the authors find that research into the antecedents of EO as well as causality and temporality of the phenomenon is underdeveloped, which the authors attribute to scarce use of mixed methods. The authors conclude chapter by discussing the challenges involved in measuring EO and offering possible recommendations for future inquiry.
Recent studies have questioned the direct relationship between entrepreneurial orientation (EO) and firm performance (e.g., Rauch, Wiklund, Lumpkin, & Frese, 2009; Wales…
Recent studies have questioned the direct relationship between entrepreneurial orientation (EO) and firm performance (e.g., Rauch, Wiklund, Lumpkin, & Frese, 2009; Wales, Gupta, & Mousa, 2013). Following this stream of research, this study examines this relationship by identifying the intermediate steps between these two variables (Alegre & Chiva, 2013; Wales, 2016; Zahra, Sapienza, & Davidsson, 2006). EO is considered essential for new market entry and new business foundation, which is why this study focuses on startups. Startups search for viable business opportunities, and this search is highly dependent on organizational learning (Kreiser, 2011). Previous studies suggest that organizational learning mediates the relationship between EO and performance (e.g., Real, Roldan, & Leal, 2014; Wang, 2008). This study investigates the role of organizational learning in this relationship by analyzing how EO and absorptive capacity (AC) interact. We propose a more direct and fine-grained measure of entrepreneurial success by developing a conceptual model that includes opportunity identification as an early outcome measure for startups. Drawing on a sample of 95 academic spin-offs in the Netherlands, this study examines the mediating role of AC and market readiness in the relationship between EO and market opportunities. The findings indicate that AC and market readiness mediate the direct effect of EO on market opportunity identification. By using opportunity identification as an outcome measure for EO, this study adopts a more direct measure for firm performance, resonating with recent discussions on the main effect of EO for organizations. These findings suggest that academic spin-offs’ AC leads entrepreneurial efforts to achieve a better product-market fit, and in return, helps to identify more market opportunities.
Building on the entrepreneurship, marketing and strategic management literature, we propose a conceptual model to investigate the effects of entrepreneurial strategic…
Building on the entrepreneurship, marketing and strategic management literature, we propose a conceptual model to investigate the effects of entrepreneurial strategic posture (ESP), perceived environmental uncertainty and international diversifi cation strategy on performance. The ESP‐International diversification‐Performance relationship is investigated using a contingency framework. Entrepreneurial strategic posture is postulated to influence the use of international diversifi cation strategy of entrepreneurial fi rms. Moreover, perceived environmental uncertainty is hypothesized to strengthen the relationship between a firm’s entrepreneurial strategic posture and international diversification strategy, which ultimately affect the firm’s performance. Propositions for further empirical studies are provided in addition to managerial and theoretical contributions.
Studies of entrepreneurial orientation tend to merge its three components‐proactiveness, risk-taking, and innovativeness‐into a monolithic construct and analyze its…
Studies of entrepreneurial orientation tend to merge its three components‐proactiveness, risk-taking, and innovativeness‐into a monolithic construct and analyze its relationship with firm outcomes at one point in time. This has resulted in knowledge voids related to the relative importance of the different components, their specific effect on value created by the firm, and their evolution over time. The present study links each component of entrepreneurial orientation to economic value creation using a longitudinal dataset. Results provide support for hypothesized relationships. Implications and avenues for future research are discussed.
This chapter synthesizes works contained within the volume and paints a picture of where entrepreneurial orientation (EO) research stands today and where it is likely…
This chapter synthesizes works contained within the volume and paints a picture of where entrepreneurial orientation (EO) research stands today and where it is likely heading in the future. From the necessity for better theorizing and measurement to new directions and context, today’s research into EO is setting the foundation for future research that brings greater understanding to what it means for firms and organizations of all types to be entrepreneurial.
Purpose – The purpose of this chapter is to study how dimensions of entrepreneurial orientation (competitive aggressiveness, proactiveness and risk taking) affect…
Purpose – The purpose of this chapter is to study how dimensions of entrepreneurial orientation (competitive aggressiveness, proactiveness and risk taking) affect international performance in competitive and technology-intensive international environments.
Methodology/approach – To address the research questions, structural equation modelling is applied to Finnish survey data (N=271).
Findings – Our findings reveal that the dimensions of entrepreneurial orientation are differentially related to international performance, and that their effect is contingent on moderating variables.
Research limitations – One limitation is the use of cross-sectional data as it limits the possibility of drawing strong conclusions from the development of the relationships between the different constructs. Also the fact that the study was conducted in a single-country setting is a limitation.
Practical implications – Results indicate that entrepreneurial behaviour is of importance for international business managers. However, results imply that prior to striving for proactive behaviour, competitive aggressiveness and venturesome risk taking managers should study their international market environments carefully and truly understand the nature of these turbulent markets, as in many occasions strong emphasis on entrepreneurial behaviour did not contribute positively to the international performance indicators, such as increasing sales and profits.
Originality/value of the chapter – Present study extends the works of Zahra and Garvis (2000), Lumpkin and Dess (2001) and Wiklund and Shepherd (2005), for example, by (a) applying entrepreneurial orientation on international business, (b) examining the effects of different dimensions of entrepreneurial orientation on a firm's international performance and (c) extending the research of the role of moderating effects on the relationship between entrepreneurial orientation and firm performance.
Today, newly founded businesses are inevitably driven to start in a digital form from day 1. Moreover, most existing businesses conceive digitalization as an important…
Today, newly founded businesses are inevitably driven to start in a digital form from day 1. Moreover, most existing businesses conceive digitalization as an important part of their strategic orientation by developing and improving their digital assets and digitalizing their processes. By taking account of this development, this chapter investigates how entrepreneurial orientation (EO) affects a small firm’s proclivity to both digitization and internationalization and their performance that comes from it. Internationalization has been a key topic for many small- and medium-sized companies (SMEs) over the past decades. As digitization is currently taking over the helm from internationalization as the most pressing topic affecting business, we carried out research among SMEs to understand the interplay of these factors influencing business performance. The focus of the research was on the precursory factors inducing firm performance as well as on their interrelationships. Using a sample of 357 SMEs, EO is found to be significantly closely associated with an SME’s degree of digitization as well as with its overall performance. In contrast, EO does not affect the SME’s level of internationalization. This result is surprising considering that proactive and risk-taking firms tend to be more inclined to enter foreign and distant markets.
In this chapter, the authors examine the main effect of entrepreneurial orientation (EO) – a firm’s strategic entrepreneurial posture – on balancing exploration and…
In this chapter, the authors examine the main effect of entrepreneurial orientation (EO) – a firm’s strategic entrepreneurial posture – on balancing exploration and exploitation in the form of organizational ambidexterity. Resource-constrained firms face an imperative to conduct innovative activities, survive hostile environments, and compete with larger and more resource-rich firms. The authors contend that firms can address these potential impediments through achieving ambidexterity via dynamic capabilities, firm-specific resources, and institutional factors. Specifically, The authors review the EO and ambidexterity literatures and summarize extant arguments related to the relationship between EO, exploration, and exploitation. The authors also discuss the most prominent scales and measures of EO, exploration, and exploitation. Moreover, the authors discuss operationalizational challenges that should be considered when conducting EO–ambidexterity research and suggest future research directions by specifying an agenda outlining useful theoretical perspectives and various contingencies that may influence the EO–ambidexterity relationship.