Firm Risk-taking, Entrepreneurial Orientation and Firm Performance: Moderating Roles of Firm Slack and Learning Orientation

Abstract

Entrepreneurship nowadays is a very relevant factor for the economic growth. Therefore, Entrepreneurial Orientation (EO) has become a fundamental factor within strategic management over the last years. Entrepreneurial Orientation is usually relation with growth, competitive advantage and greater performance. This study aimed to analyze the relation between Firm Slack-Entrepreneurial Orientation-Firm Performance; as well, it aimed to analyze the moderating roles of Learning Orientation and Firm Slack in the Firm Slack-Entrepreneurial Orientation-Firm Performance relation. In this research a conceptual model is developed and a series of hypotheses are besought that explain the interaction between constructs. This research uses a hierarchical regression analysis in order to analyze the survey data from 101 CEO from Taiwan and Mexico. According to the findings of this research, there is a significant positive relationship between Firm Risk-taking and EO, also this research shows that Firm Slack has a positive moderating role in Firm Risk-taking-EO relationship, however, this study was unable to provide any evidence of a positive relationship between EO and Firm Performance, this research also was unable to provide any evidence of a positive moderating role of Learning Orientation. The principal limitation of this study is that offers a small sample size data collection. However, this research proposes a starting point for future researches in Entrepreneurship field and the factors that influence Firm Performance.