Relationship between entrepreneurial orientation, innovative co-branding partnership, and business performance

Abstract

PURPOSE: This study aimed to determine the relationship between entrepreneurial orientation (EO), innovative co-branding partnership, and business performance. EO was analyzed through five dimensions: innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy. METHODOLOGY: As part of the first phase of brand management research, the quantitative survey was conducted in June 2023 among managers of companies operating in Poland using an online questionnaire. 280 responses were obtained, of which 266 questionnaires were qualified for further calculations. Incomplete questionnaires were eliminated. Hypotheses were formulated regarding the positive impact of the five dimensions of EO (innovation, proactivity, risk-taking, competitive aggressiveness, and autonomy) on business performance and innovative co-branding partnership, and the positive impact of innovative co-branding partnership on business performance. Structural equation modeling using partial least squares (PLS-SEM) was applied to support the conceptual framework and proposed hypotheses. The calculations were performed in Smart PLS version 4.0.9.5. FINDINGS: The results indicate that three EO dimensions (innovativeness, proactiveness, and competitive aggressiveness) influence business performance. There was no effect of risk-taking and autonomy on business performance. In addition, three EO dimensions (innovativeness, competitive aggressiveness, and autonomy) influence innovative co-branding partnership. No effect of risk-taking and proactivity was found on innovative co-branding partnership. This means that two EO dimensions (innovativeness and competitive aggressiveness) positively influence innovative co-branding partnership and business performance. Furthermore, innovative co-branding partnership was proven to influence business performance. IMPLICATIONS for theory and practice: The results of the study point to theoretical implications for further exploration of entrepreneurial orientation and its dimensions. The practical implications relate to recommendations for managers. Managers should make efforts to increase innovation, market activity, and competitiveness of the market offer. It is necessary to monitor the actions taken in the context of their impact on selected market, consumer, product, and brand performance. In addition, managers should analyze the possibilities of undertaking cooperation of this nature to increase business performance. ORIGINALITY AND VALUE: This study provides a better understanding of the impact of entrepreneurial orientation on business performance using innovative co-branding. Compared to previous studies, it has an advantage in research by introducing the issue of innovative co-branding, which can be used for the development of new business activities. In addition, this study focuses on several areas of business performance, including product, brand, consumer, and financial performance.