Entrepreneurial orientation in work groups – effects of individuals and group characteristics

Abstract

This study discusses how the perceived entrepreneurial orientation (EO) of individuals, and in particular that of the work group leader impacts the perceived EO of the work group, which in turn improves the work group’s performance. Using a sample of 356 individual employees of five companies operating globally in diverse industries, the results of our structural equation model and multiple linear regression analyses indicate that both the group members and work group leader’s EO decisively encourage the EO of the work group, with a significantly positively effect on its performance. Furthermore, while work group heterogeneity shows a small but significant positive influence, a shared vision in the work group is found to have a clearly positive impact on work group EO. Accordingly, this study has crucial practical implications for work groups and their leaders aspiring to ameliorate work group performance through EO increasing measures with reference to the specific individual and group characteristics. From a theoretical perspective, this research contributes to the academic debate on the EO concept at individual and work group levels.