Firm Entrepreneurial Orientation Research Articles

Family firm entrepreneurial orientation: the effects of socio-emotional wealth, professionalization and bifurcation bias

PurposeThis paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and bifurcation bias, on their entrepreneurial orientation (EO).Design/methodology/approachThe paper surveyed 133 small and medium-sized family firms in the USA. The respondents were recruited through Prolific Academic.FindingsWhen SEWi is low, a family firm becomes more similar to a non-family firm, thereby enjoying the benefits associated with EO. When SEWi is high, a family firm leverages the unique resources and capabilities specific to family firms. Moderate SEWi levels are associated with lower EO levels. Additionally, the results support the argument that professionalization (involving non-family managers, formalization and decentralization) fosters EO, while bifurcation bias hinders its development.Originality/valueUnlike previous studies, this paper posits a non-linear, U-shaped relationship between SEWi and EO. It contributes to the field by empirically investigating the effects of professionalization and bifurcation bias on EO in family firms.

Effects of Entrepreneurial Orientation Within Organizations: The Role of Passion for Inventing and Organizational Identification

In recent years, entrepreneurial orientation (EO) has emerged as a key concept in the management literature, with various studies demonstrating its positive effects on important firm-level outcomes. However, our understanding of whether and how EO shapes dynamics within organizations is still underdeveloped. Thus, by integrating EO and social information–processing theories, this study develops and tests a cross-level contingency model that describes how and when EO cascades through an organization—bridging firm, supervisor, and employee levels. We conducted a three-source, three-wave study involving 280 supervisors and 1,214 employees from 94 organizations to test our model. The results show that firm-level EO is positively related to employees’ creative performance and that supervisors’ and employees’ passion for inventing serves as the central serial mediators for these links. The results also reveal that these cascading effects of EO do not occur unconditionally but depend on an important boundary condition—that is, the extent to which supervisors identify with their organizations. A follow-up study of 238 supervisors from various firms provides further support for the social information–processing perspective of our model. It shows that the link between firm EO and supervisors’ passion for inventing is mediated by perceived normative expectations for creativity. Taken together, these findings offer a new perspective on the internal dynamics of EO, uncover a crucial boundary condition, and provide insights for the effective implementation of EO.

The effect of CEO entrepreneurial passion on family firm entrepreneurial orientation: does generational stage matter?

PurposeThe purpose of this study is to explore to what extent passionate family chief executive officers (CEOs) increase the entrepreneurial orientation (EO) of the family firm. More specifically, the authors investigate the impact of the family CEO’s entrepreneurial passion (EP) on the firm’s EO and explore whether the generational stage of the family CEO alters this relationship.Design/methodology/approachA multiple moderated regression model was used to test the hypothesized relationships, based on a unique sample of 140 private Belgian family firms. All respondent CEOs are members of the controlling family, meaning they are in a unique position to influence firm-level outcomes.FindingsThe results reveal a significant positive effect of a CEO’s EP on the family firm’s EO. The generational stage of the family CEO moderates the EP-EO relationship, so the positive effect is strongest in first-generation family CEOs and becomes negative in third- or later-generation CEOs.Originality/valueThis research builds on insights from imprinting and upper echelon theory to explore how the EP of the family CEO impacts the family firm’s EO. This study thereby contributes to research regarding the antecedents of EO and introduces the concept of EP in a family firm context. The present study further contributes to the literature on imprinting, as it empirically shows how the EP-EO relationship differs depending on the generational stage of the family CEO. In a family firm context, the generational stage acts as a contingency variable, determining the dominant theory (i.e. upper echelon or imprinting theory) in explaining the EP-EO relationship.

The Relationship between Entrepreneurial Orientation and Employee Engagement: A Multilevel Analysis

This research examined the relationship between entrepreneurial orientation and employee engagement, using a sample of 372 employees from small to medium-sized enterprises (SMEs) in Syria. Our study aimed to provide an empirical understanding of the intricacies that interplay between the entrepreneurial orientation of firms and the level of employee engagement. The results indicate a positive correlation between these two factors. The insights provided by this study may be valuable for business owners, policymakers, and researchers alike.

From Big Data Analytics to Organizational Agility: What Is the Mechanism?

In the age of digitalization, big data analytics capabilities are considered one of the most critical organizational resources. Many organizations make considerable investments in these resources with an intention to improve their agility. However, the mechanism to reap agility from big data analytics still requires extensive empirical research and analysis. This study extends the big data analytics model by examining the mediating effects of entrepreneurial orientation between big data analytics capabilities and organizational agility. Partial least squares-structured equation modeling (PLS-SEM) was used to analyze the responses collected from 104 firms in Jordan. Results demonstrate that entrepreneurial orientation explains the relationship between big data analytics capabilities and agility. This finding contributes to the management literature by showing that big data analytics capabilities may enhance firm entrepreneurial orientation. While much of the prior research conceptualized the entrepreneurial orientation of the firm as a static characteristic, the current study argues that big data analytic capabilities play a key role in developing organizational agility through its role in improving entrepreneurial orientation, which subsequently creates value for firms, their customers, and the other stakeholders. Finally, challenges and future scope pertaining to this study are discussed. Recommendations for future studies on this promising topic include the use of longitudinal designs and mixed methods (quantitative with qualitative) approaches to provide researchers with new insights.

The interactive effect of cultural values and government regulations on firms’ entrepreneurial orientation

PurposeConsidering that the social-cultural context is important as in which the entrepreneurs are embedded to conceptualise entrepreneurial orientation (EO), the purpose of the study is to explicate the influence of the key decision-makers’ internalised cultural values and perceptions of government regulations, to offer nuanced explanations of micro-level variations in EO of firms embedded in the same institutional context.Design/methodology/approachUsing a quantitative approach, relationships are explored in a sample of 201 Malaysian small- and medium-sized enterprises (SMEs). Partial least squares structural equation modelling (PLS-SEM) is used for the sample, and an additional test is conducted for a robustness check.FindingsThe study finds that three cultural values of the key decision-maker, namely individualism, masculinity and uncertainty avoidance, exhibit a significant association with the EO of the firms. Further, the analysis reveals that the positive effects of individualism and masculinity are enhanced when moderated by favourable perceptions of government regulations to entrepreneurship.Research limitations/implicationsThe study uses a single key informant in data collection, therefore, the possibility of single-respondent bias. The results must be interpreted in light of these limitations.Originality/valueThe study contributes to the existing literature regarding the relationship between institutions and entrepreneurship. Specifically, it articulates a microfoundations lens to explain the influence of institutions in terms of key decision-makers’ internalised cultural values (informal institutions) and their perceptions of government regulations (formal institutions) on the EO of the firm. It further elucidates the need to embrace informal and formal institutions as interdependent factors instead of treating them as standalone constructs in entrepreneurship research and policy design.

The Internationalization of Small & Medium Enterprises (SMEs) in Automation Industry of Penang, Malaysia

With the rise of globalization, internationalization of companies has become a new business order, as globally, boundaries are no longer a barrier to firms as they can develop competence to enter international market and gain competitive advantage at global marketplace. The significance of this proposal is by integrating in a single framework the relationship between a pull factor (networking) and push factors (management attitude and entrepreneurial orientation) on the internationalization of SMEs in automation industry as well as testing the moderation effect of marketing characteristics (market attractiveness) on these constructs. This study proposes a research framework that examined the association between networking, management attitude, entrepreneurial orientation and internationalization of SMEs in the automation industry of Penang, Malaysia, with marketing characteristics (market attractiveness) as moderator. Underpinned by the Eclectic Model (OLI Framework) and Network Theory, the proposal examines the function of networking to obtain resources and access market opportunities; the positive management attitude and entrepreneurial orientation of firms as strategic intangible resources, and the marketing characteristics to function as moderator between the predicting and criterion variables. Theoretically, the study investigates empirically the association amongst the three independent variables (networking, management attitude and entrepreneurial orientation) and the dependent variable (internationalization of SMEs). In addition, this study has incorporated a moderating variable (marketing characteristics) into the research model. This proposal was unique in the sense that it is pivoted in SMEs automation industry in Penang, Malaysia. Thus, this proposal will enrich literature on the moderating effect of marketing characteristics (market attractiveness) and the relationship amongst the variables in SMEs automation industrial setting and context. Keywords: internationalization, automation, Small & Medium Enterprise, Penang, Malaysia. DOI: 10.7176/EJBM/13-18-03 Publication date: September 30 th 2021

Adoption of Big Data Analytics in Supply Chain Management

Supported by the literature on big data, supply chain management (SCM), and resource-based theory (RBT), this study aims to evaluate the organizational variables that influence the intention of Saudi SCM professionals to adopt big data analytics (BDA) in SCM. A survey of 220 supply chain respondents revealed that both top management support and data-driven culture have a high significant influence on their intention to adopt BDA. However, the firm entrepreneurial orientation showed no significant effect. Also, the findings revealed that supply chain connectivity positively moderates the link between top management support and intention. This study contributes to the practical field, offering valuable insights for decision makers considering BDA adoption in SCM. It also contributes to the literature by helping minimize the research gap in BDA adoption in the Saudi context.

Origins and consequences of intrapreneurship with behaviour-based approach among employees in the hospitality industry

Purpose This paper aims to assess an integrative model of origins and sequences of employee intrapreneurial behaviour in hospitality companies. Design/methodology/approach The research sample comprises 321 frontline employees in four-star to five-star hotels in Ho Chi Minh City of Vietnam, using a structural equation model (SEM). Findings The paper shows that employee behavioural factors (subjective norms, attitude towards intrapreneurship and perceived behavioural control) and perception of firm entrepreneurial orientation dimensions (innovativeness, proactiveness and risk-taking) have a significant impact on the two intrapreneurship activities of employee strategic renewal behaviour and venture behaviour, which in turn, beneficial impact firm performance. The influence of demographic variables is also assessed in the research model, and education level, income level and management level are found to be prestigious. Practical implications Hospitality firms need to establish the architecture and system related to entrepreneurship orientation and organisational climate. Additionally, there is a need for providing resources and knowledge, thereof, could provide support employees in appreciation of corporate entrepreneurship and authorisation to conduct intrapreneurial behaviour. Originality/value The findings grant influencing mechanisms of employee individuality and dimensions of entrepreneurial orientation on firm performance through employee strategic renewal behaviour and venture behaviour within the hospitality firms.

Time Perspective and Entrepreneurial Orientation in Family Firms: Some Theoretical Propositions

In this theoretical article, we highlight the central role of an important dimension of psychological time related to individual experiences and perceptions of the past, present, and future—time perspective (or TP)—in influencing the entrepreneurial orientation (EO) of family firms. To do so, we draw on the TP, entrepreneurship, and family business literatures and provide insight into how a CEO’s TP influences family firm engagement in entrepreneurial activities. Family firm specifics also play important roles in the TP-EO relationship. We propose that (1) the positive TP of the family firm CEO (i.e., past-positive, present-hedonistic, and future TP) has positive effects on family firm EO; (2) the negative TP (i.e., past-negative and present-fatalistic TP) has negative effects on family firm EO, but these effect are mitigated by family firm specifics; and (3) the effects of EO on the subsequent TP of the CEO (and other family members) are based on previous TP and are likely to be moderated by the feeling of being instrumental and positive affect, family support, and perseverance. Last, we discuss some implications for theory and research.

The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain

This article analyzes firm entrepreneurial orientation across different contexts. In the light of the existing literature on entrepreneurship and institutional theory, it departs from the hypothesis that the context in which firms operate determines the importance of each dimension comprised in the multidimensional concept of entrepreneurship orientation, thus moderating its effect of on firm performance. The sample for this study is composed of both small and medium-sized firms from three countries: China, Mexico, and Spain. In the means of testing our hypothesis and thus quantifying the moderating effect of context, a structural equation model PLS-SEM technique and, specifically, a multigroup analysis approach has been implemented. The results have led us to confirm an overall positive effect of entrepreneurial orientation on firm performance regardless of firm context. However, the context of a firm certainly acts as a moderator by determining the effect of entrepreneurial orientation on firm performance. This effect is explained by the conditioning power of context over innovation, proactiveness, and risk-taking, the three main factors defining firm entrepreneurial orientation across contexts.

Captain at the Helm: How CEO Narcissism Steers Firm Entrepreneurial Orientation

Executives must navigate through the treacherous waters of today’s fast-paced competitive environments, where their firms’ profitability, growth and survival are constantly threatened. To combat th...

THE COMPLEMENTARY EFFECTS OF FIRMS’ AND TEAM LEADERS’ ENTREPRENEURIAL ORIENTATION ON INNOVATION SUCCESS AND PERFORMANCE

The objective of this paper is to enrich the literature on the entrepreneurial orientation (EO)–performance relationship by introducing innovation success as an antecedent variable. By applying structural equation models, we examine a sample of 356 individuals from five organisations. The main results show that the team leader EO and firm EO are complementary and that they boost innovation success significantly, thereby having an indirect positive impact on the relationship between EO and performance. The mediating effects of innovation success imply that it is an antecedent in the EO–performance relationship at organisational levels, which adds to current theoretical discussions regarding the multilevel applicability of the EO construct. Thus, this study represents an original source for human resource departments that are shaping working groups.

Entrepreneurial orientation and SME international performance: The mediating role of networking capability and experiential learning

This article extends knowledge of entrepreneurial orientation (EO) by examining EO in the context of international performance of small- and medium-sized enterprises (SMEs). We enhance understanding of foreign market entry of SMEs by taking into account the mediating mechanisms (i.e. networking capability and experiential learning) through which firm EO leads to superior performance across borders. A sample of 164 internationalising SMEs in New Zealand supported the direct impact of EO on international performance as well as the mediating role of experiential learning and networking capability in this focal relationship. These findings reveal the importance of EO in internationalisation of SMEs.

Entrepreneurial orientation in firms with a social mission - a mixed-methods approach

This study explores entrepreneurial orientation (EO) in Finnish social enterprises in a social context using a mixed-methods approach. As a result, we propose that the generic dimensions of EO apply in a social context with minor refinements but suggest an additional dimension of persistence. The social enterprises take substantial financial risks although carefully avoid anything that may jeopardise the firms’ social impact. They exhibit highly innovative behaviour when developing new ways to serve the social purpose as well as when finding new ways to generate income. Furthermore, these enterprises exhibit remarkable persistence in adhering to a course of action despite their experienced difficulties.

Transgenerational entrepreneurship around the world: Implications for family business research and practice

The concept of transgenerational entrepreneurship postulates that the success of family firms across generations relies on three main dimensions—firm entrepreneurial orientation, familiness, and cultural contexts—which affect their financial, market, and social performance. The aim of this article is to empirically test the concept of transgenerational entrepreneurship using a large sample of family firms from 21 countries. Our results support and validate the main dimensions that form the concept and their structural relationships as well as highlight differences and similarities across cultural contexts.

Temporal Change Patterns of Entrepreneurial Orientation: A Longitudinal Investigation of CEO Successions

This study investigates the temporal change patterns of entrepreneurial orientation (EO) subsequent to chief executive officer (CEO) successions. Integrating prior research, we hypothesize that CEO successions lead to a change in EO and that this change exhibits an inverse U‐shape over time. Based on data collected for 67 CEO successions, our empirical results support our hypotheses, showing that successions effectuate changes in EO and tend to increase the level of EO in firms. Changes in EO peak in the second to fourth year of a new CEO's tenure, with less change before and after. We also demonstrate that changes in EO occur later but are more pronounced if the newly appointed firm leader is an outside CEO.

Intrapreneurship and firm entrepreneurial orientation: insights from the health care service industry

Intrapreneurship affects our daily lives and is a research topic of great importance. Given the current economic climate, its relevance to firm performance has increased considerably both among academics and practitioners. Specifically, our approach has focused on the identification, analysis and explanation of the determinants/variables that influence the intrapreneurship process in the health care service industry, including the private, public and social sectors. The methodology employed consisted of collecting primary data via a questionnaire survey. The questionnaire was sent by e-mail to health care employees and middle managers from the northern and center regions of Portugal, and the study covered 202 professionals from 45 organizations. The results show that the participating health care team members present intrapreneurial behavior, and health care organizations create favorable internal conditions that support the theoretical concepts of intrapreneurship and firm entrepreneurial orientation (FEO).

Entrepreneurial Orientation, Business Development Services, Business Environment, and Performance: A Critical Literature Review

The role of entrepreneurial orientation in firms has been a major area of interest to many scholars in the past. Entrepreneurially oriented firms are innovative, calculated risk-takers, and proactively reach markets ahead of their competitors. This paper examines the role of business development services, internal and external business environments on the relationship between entrepreneurial orientation and firm’s performance. The article is a theoretical discourse and uses literature from secondary sources in the analysis. The paper finds that past studies conceptualized entrepreneurial orientation as a three factor single-dimensional model and a five factor multidimensional model. Studies using the three factor model have reported different results to those adopting the five factor approach. This has led to inconsistencies in the empirical results of entrepreneurial orientation on firm’s performance. This article also finds that business development services play a mediating role in the entrepreneurial orientation and performance relationship, and that external environment moderates this relationship. However, the paper finds no role of internal environment in the EO-firm’s performance relationship. The paper concludes that the link between entrepreneurial orientation and performance is still a worthy area for further study since contradictions still exist in empirical studies. This study recommends that future studies can use a contingency framework to focus on how other factors are likely to affect this relationship.

Toward a Better Understanding of the Association Between Strategic Planning and Entrepreneurial Orientation — The Moderating Role of National Culture

Abstract Does strategic planning facilitate or inhibit entrepreneurial orientation within firms? While most extant research finds positive relationships between planning and entrepreneurial orientation, the strength of these relationships varies across studies. Based on data from 294 firms from nine culturally and economically diverse countries, the present study shows that national cultural dimensions (in particular individualism, power distance, and femininity) determine the effectiveness of strategic planning in driving entrepreneurial orientation in firms.