The Epistemology of Entrepreneurial Responsible Orientation (ERO): Theory, Conceptualization, and Future Research

Abstract

Organizations are constantly searching for new pathways to ensure survival and sustainability in a highly dynamic and competitive environment. Against this background, the present study aims to propose a strategic framework considering the crucial role of small businesses and entrepreneurship for sustainable economic, social, and environmental development. This paper employed a selective-intensive literature review technique to review and evaluate extant sustainability orientation (SO) literature from multiple strategic orientation paradigm. In addition, drawing from the theoretical underpinnings of resource complementarity and configuration perspective, this study proposes a configuration of sustainability orientation (SO), entrepreneurial orientation (EO), and market orientation (MO) in the era of sustainable development. The key finding of this paper is the development of a higher-order dynamic capability, that is, Entrepreneurial Responsible Orientation (ERO). ERO is proposed as an entrepreneurial strategic framework that integrates three distinct but complementary elements (i.e., sustainability, entrepreneurial, and marketing) under the umbrella of strategic orientation that drives superior sustainable firm performance. Moreover, we put forward the future research agenda by developing several potential research questions, thus, the findings of this study will serve as a springboard to extend the knowledge base in this field of research. This paper provides an integrated framework in the contexts of small businesses and entrepreneurship by utilizing the combination of the theoretical and conceptual development approaches. The proposed framework, if implemented successfully, has the potential to drive sustainable performance of the small firms particularly, and sustainable development of the country, generally.