Growing up but still be entrepreneurial? The entrepreneurial orientation–performance relationship

Abstract

The relationship between entrepreneurial orientation (EO) and performance has received significant attention within entrepreneurship research. Yet, the mechanisms that underpin the EO-performance relationship are not fully understood. Recent developments such as an improved theoretical understanding of the manifestation and pervasiveness of EO highlight the need for a more nuanced understanding of EO by investigating nonmanagerial employees’ behaviors and attitudes of EO. Via an in-depth case study of a high-tech venture in Germany, we examine a set of proactive, innovative, and risk-taking behavioral patterns that contribute to the proliferation of EO within firms as they grow. Our study reveals that the employee’s more inwardly focused orientation is directed towards coping with challenges the firm faces during growth-related organizational transformations, rather than introducing innovations in the business or experimenting with opportunities. We conclude that EO is an individual-level construct and a key element in the causal link between organizational performance.