Abstract
This empirical study was aimed at deepening the knowledge of the direct and indirect effects of entrepreneurial orientation (EO) on business performance and how industrial organization (IO) influen...
Highlights
Previous studies have examined the relationship between entrepreneurial orientation (EO) and firm performance and generate no definitive results probably due to the omission of the moderating role of different unidentified variables (Covin & Slevin, 1991; Lee & Chu, 2017; Lumpkin & Dess, 2001)
The results show that the structural model has predictive relevance, as shown in Table 4, where it can be seen that the EO is explained in 17% by industrial organization (IO) (R2 = .170); customer satisfaction (CS) is explained in 12.8% by EO (R2 = .128); and business performance is explained in 43.6% by EO and CS (R2 = .436)
Regarding Hypothesis 3 (H3), the results show the effects that EO has on business performance (β = .176, p < .001), H3 is accepted, as it has been found that EO has a direct impact of 17.6% on business performance, and that this effect according to the test of Cohen (1988) is small in size
Summary
Previous studies have examined the relationship between entrepreneurial orientation (EO) and firm performance and generate no definitive results probably due to the omission of the moderating role of different unidentified variables (Covin & Slevin, 1991; Lee & Chu, 2017; Lumpkin & Dess, 2001) To explicitly address this gap, this study investigates how EO influences firm performance, considering the mediating effect of customer satisfaction (CS) and the impact of industrial organization (IO) on EO of micro and small firms. The strategic perspective of a business provokes the advent of strategic competition that incites different behavior and action preferences (Dälken, 2014) In this sense, entrepreneurs have been affected by the context. They are not commonly informed or do not have the skills to respond in the same
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