Strategic Entrepreneurial Orientation Research Articles

Cultivating entrepreneurial human capital in multinational corporations: An intercultural paradox mindset lens

The development of an entrepreneurial strategic orientation is of growing concern for global corporations. Through a human capital lens, we probe how and when firms can develop and cultivate managerial entrepreneurial resources; by explicitly encouraging cross-cultural experiences that stimulate systematic shifts in mindset and behavior. Drawing on paradox theory and intercultural psychology, we put forth a model positing that cross-cultural experience (an endowment firms can either hire for or facilitate themselves) develops managerial entrepreneurialism—consisting of (a) venture ideation, (b) opportunity recognition, and (c) entrepreneurial behavior—through the intervening mechanism of a paradox mindset. As a boundary condition we uncover that paradox mindset formation partially hinges on home cultural tightness-looseness. We employ three distinct experiments on multinational samples of individual professionals (n = 506), active entrepreneurs (n = 370), and current managers in global firms (n = 288) to test our theorizing. Finding general support for our model, with analyses yielding important theoretical and practical implications from non-findings too, we conclude that a paradox mindset is a necessary, but not de facto, mediating step between cross-cultural experience and the cultivation of entrepreneurial managers. We also find that paradox mindset formation is conditional and related to home cultural tightness-looseness.

Women Entrepreneurs Who Break through in Reward-Based Crowdfunding: The Influence of Entrepreneurial Orientation

Based upon social identity theory, having a strategic entrepreneurial orientation is crucial for ventures seeking funding, since entrepreneurial orientation (viewed as an entrepreneurial organizational culture) has a significant influence on investors’ decision-making for resource allocation. However, the attitude of investors toward women entrepreneurs’ behavioral orientation is controversial. Women entrepreneurs may not benefit from specific behavioral orientations because of gender bias. In this study, we had a sample of 5105 ‘design and technology’ campaigns with explicit gender information on Kickstarter, utilizing a computer-aided text analysis dictionary of entrepreneurial orientation to examine whether the five dimensions of entrepreneurial orientation signals affected the relationship between women entrepreneurs and their performance in reward-based crowdfunding. Our findings demonstrated that investors tended to support women entrepreneurs who displayed many of the signals for autonomy and risk-taking, while backers were skeptical of women entrepreneurs displaying a high number of the signals for proactiveness. This study will enable an in-depth understanding of the link between investors’ decision-making and women’s entrepreneurial behaviors, in addition to determining which specific entrepreneurial behavior is important for helping women entrepreneurs to obtain funding in the context of reward-based crowdfunding, from a practical perspective.

Entrepreneurial Strategic Orientation: Prerequisite for SMEs Success in IoT and Digital Transformation Sphere?

Entrepreneurial orientation (EO) is a multidimensional construct that reflects a firm’s tendency to be innovative, proactive, and risk-taking. Previous research has demonstrated that companies with a strong EO possess a competitive advantage in the market when compared to those with a conservative approach to management. The objective of this study is to analyse the entrepreneurial orientation of small and medium-sized enterprises (SMEs) using the ENTRE-U scale and to identify the dimensions of EO that are critical for achieving business success in the context of digital transformation and IoT implementation. The identification of these dimensions is facilitated through a survey method and exploratory factor analysis. After administering the ENTRE-U scale to a representative sample of SMEs that use modern technologies, such as IoT, four distinct dimensions of EO emerged. Each dimension of EO has a significant impact on firm performance. By adhering to the established EO dimensions and using the proposed methodology, managers can develop an efficient business model that aligns with the current digital market demands, enhances SMEs (survival, resilience, and sustainability), and addresses the high uncertainty prevalent in today’s business environment.

Analysis of the Influence of Entrepreneurial Apprehension and Entrepreneurial Strategic Orientation on Breakthrough Innovation

At present, there are few studies on breakthrough innovation (BI) involving entrepreneurial apprehension (EA). The purpose of this study is to identify how entrepreneurial apprehension affects breakthrough innovation. Based on the theory of planned behavior, the paper constructs a theoretical conceptual model of the influence of entrepreneurial apprehension and entrepreneurial strategic orientation (ESO) on breakthrough innovation and proposes corresponding research hypotheses, while using SPSS to conduct regression analysis of 216 valid questionnaires from high-tech enterprises in Yangtze River Delta. The results show that entrepreneurial apprehension can promote breakthrough innovation, but that entrepreneurial strategic orientation plays a partially mediating role in the process of entrepreneurial apprehension influencing breakthrough innovation. The incorporation of entrepreneurial apprehension into the study of breakthrough innovation complements and improves on the theory of entrepreneurial motivation for breakthrough innovation, and the study of entrepreneurial apprehension effectively expands the content of entrepreneurship theory. The paper concludes with the most important managerial implications and outlook for future research.

The Effect of Information Communication Technology Readiness and Knowledge Management on Entrepreneurial Strategic Orientation and its Implications on Firm Performance

ABSTRACT This research aims to investigate the effect of the information communication technology readiness and knowledge management on entrepreneurial strategic orientation and their implication to firm performance. The methodology of this research was explanatory research with hypothesis testing for examining seven hypotheses. The study populations were small medium enterprises located in DKI Jakarta, with a sample size of 392 SMEs. Data for this study were collected using questionnaires, and structural equation modeling (SEM) was employed for data analysis. The results of this research were as follows: (1) Information communication technology readiness positively and significantly influenced entrepreneurial strategic orientation; (2) knowledge management positively and significantly influenced entrepreneurial strategic orientation; (3) information communication technology readiness and knowledge management positively and significantly influenced entrepreneurial strategic orientation; (4) information communication technology readiness positively and significantly influenced firm performance; (5) knowledge management positively and significantly influenced firm performance; (6) entrepreneurial strategic orientation positively and significantly influenced firm performance; and (7) information communication technology readiness, knowledge management, and entrepreneurial strategic orientation positively and significantly influenced firm performance. The mediating effect of entrepreneurial strategic orientation increased the effects of information communication technology readiness and knowledge management on firm performance. The results of this research indicate that the effect of information communication technology readiness and knowledge management on entrepreneurial strategic orientation, information communication technology readiness, and knowledge management on entrepreneurial strategic orientation on firm performance of SMEs of Jakarta. All of seven hypotheses that are proposed in this research can be accepted. Information communication technology readiness as an independent variable was the strongest influence on entrepreneurial strategic orientation, and entrepreneurial strategic orientation was the strongest influence on firm performance. This dissertation also discusses the findings and limitations, theoretical and practical contribution, theoretical and managerial implications of the study, and suggestions for future research.

Entrepreneurial Strategic Philosophy: A Cross-decade Conceptual Model Between Entrepreneurial Orientation and Strategic Philosophy

The development of literature on entrepreneurship has continued for several decades. Starting from the mainstream of innovation, strategic changes, until intersecting with strategic management. Several studies have discussed the relationship between entrepreneurship and strategic management so that companies can improve their entrepreneurial orientation. But, there is still no research that specifically discusses how entrepreneurship combines with the philosophy of strategic management to create a better entrepreneurial strategic orientation. The research here aims to create a specific conceptual relationship between entrepreneurial orientation and the philosophies of strategic management. The qualitative method through literature study was carried out on this research with purposive and snowball sampling techniques to build several propositions to become a model of entrepreneurial strategic philosophy. As a result of the conceptual review here, it is known that there is a conceptual relationship between the entrepreneurial orientation and the philosophy of the strategic management. The formation of art, bottom-up, and flexibility approach will be the most compatible strategic philosophy if the organization aims to increase entrepreneurial orientation rather than bureaucracy orientation. Otherwise, the combination of science, top-down, and consistency approach will be the most compatible strategic philosophy if the organization aims to emphasize bureaucracy orientation rather than entrepreneurial orientation.

Strategic Entrepreneurial Orientation in Higher Education: A Comparative Analysis

Internalizing entrepreneurial awareness at a university is important to ensure the sustainability of supporting entrepreneurial activities and effective resource management. Managers, academics and administrative staff should address entrepreneurship as a strategic goal so that the environmental conditions of entrepreneurship encouragement and support can be created to upgrade to the fourth generation university model, which is the entrepreneur-innovative research university model. Thus, the question should be “What will be the strategic entrepreneurial orientation in terms of effective resource management in higher education?” It is important to look for answers to questions, such as “What are the strategic approaches that directly affect effective resource management and university conditions?”, “What is expected from university administrations?”, and “How can the efforts of university administrations be evaluated?” An alternative model was developed by Koyuncuoğlu and Tekin (2019) to evaluate the extent to which university administrations internalize entrepreneurship and how much its entrepreneurial culture has been embraced in the academic and administrative organization, educational programs, and administrative processes. This study aims to review the studies on strategic entrepreneurial orientation in higher education and to reveal the existing knowledge about the dimensions of entrepreneurship and strategic entrepreneurial orientation. Therefore, the strategic entrepreneurial orientation model developed by Koyuncuoğlu and Tekin (2019) is discussed, the models in the literature are compared, and some suggestions are made for researchers and universities.

Effects of the Entrepreneurial Strategic Orientation of Social Enterprises on Organizational Effectiveness: Case of South Korea

This study aims to empirically verify whether the entrepreneurial strategic orientation of social enterprises has any effect on organizational effectiveness with the mediation of dynamic capabilities. In the consideration of social enterprises’ features, strategic orientation consisted of social value orientation, entrepreneurial orientation, and market orientation. Dynamic capabilities consisted of absorption capacity and coordination capacity, and organizational effectiveness was comprised of job satisfaction and organizational commitment. An online questionnaire survey targeted 228 employees of Korean social enterprises. The survey results were analyzed using a structural equation. As a result of the analysis, entrepreneurial orientation and market orientation significantly affected absorption capacity, but social value orientation did not affect it. Social value orientation and market orientation significantly affected coordination capacity, but entrepreneurial orientation did not affect it. Absorptive capacity and coordination capacity affected organizational effectiveness, and the hypotheses were adopted. Consequently, it was revealed that market orientation had the most significant effects on social enterprises’ dynamic capabilities and organizational effectiveness. It was confirmed that social value orientation and entrepreneurial orientation revealed differences depending on the absorptive capacity and coordination capacity of dynamic capabilities.

Market-sensing capability, knowledge creation and innovation: The moderating role of entrepreneurial-orientation

This article examines the nexus between market-sensing capability, knowledge creation, strategic entrepreneurial-orientation and innovation in small and medium sized enterprises (SME). Data was garnered from (n=255) SMEs operating in Jordan and a covariance-based structural equation modelling (CB-SEM) was applied to analyze the data. SEM result illustrates a positive effect of market-sensing capability on (1) knowledge creation, and (2) firm innovation. Knowledge creation process has positive effect on (3) firm innovation. Knowledge creation process (4) mediated the link between market-sensing capability and firm innovation. Strategic entrepreneurial-orientation moderates the link between (5) knowledge creation and firm innovation, such that the positive relationship became weaker when strategic entrepreneurial-orientation is high. Theoretically and empirically this study has contributed to the existing inconsistent findings, and also offer useful managerial insights.

Strategic entrepreneurial orientation: Configurations, performance, and the effects of industry and time

Research Summary: Strategic entrepreneurship research has sought to understand how firms' entrepreneurial behaviors and decision making influence firm performance. Generally this research has treated entrepreneurial orientation (EO) as consisting of dimensions that independently influence firm performance. This approach conflicts with conceptual and empirical work suggesting that managers embrace complex knowledge structures. Taking a configurational perspective that accounts for relations among the EO dimensions, we analyze a longitudinal sample of 399 firms in four technology industries to reveal how different EO patterns—identified using fuzzy‐set qualitative comparative analysis—lead to higher or lower firm performance based on industrial‐, temporal‐, and measurement‐related factors.Managerial Summary: A firm's entrepreneurial orientation consists of its relative emphasis on autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk taking. Do companies intentionally emphasize different aspects of entrepreneurship? Our analysis suggests that they do and that different patterns developed by companies have implications for their performance. Our work suggests managers should develop a profile of entrepreneurial dimensions that fit well in their industry. For instance, firms in growing yet stable industries tend to perform well when they emphasize autonomy and competitive aggressiveness and focus less on innovativeness, proactiveness, and risk taking. In contrast, this approach would not lead to high performance in more hostile industries where innovativeness is essential.

Malaysian women entrepreneurial characteristics, strategic orientation and firm performance: The moderator role of government support programs

Malaysian women entrepreneurial characteristics, strategic orientation and firm performance: The moderator role of government support programs

Effects of Entrepreneurial and Environmental Sustainability Orientations on Firm Performance: A Study of Small Businesses in the Philippines

Why do small businesses in developing countries embrace sustainable business practices and what are the effects on their performance? We address these questions by drawing on the natural‐resource based view of the firm to argue that the environmental sustainability orientation of small businesses can be explained by their entrepreneurial orientation. Our study of 197 small businesses in the Philippines shows that an entrepreneurial strategic orientation enables them to develop a more proactive stance toward environmental sustainability practices which lead to superior firm performance. The implications of the findings for future research and for public policy for small businesses are also discussed.

Strategic Orientation as a Mediator Between Environmental Dimensions and Performance: A Study of Brazilian Hotels

This study analyzes the relationships between the dimensions of organizational environment dynamism, complexity and munificence and firm performance and mediating effect of strategic orientation. Data were collected by surveying 170 managers of Brazilian hotels and analyzed using structural equation modeling. The results revealed a positive relationship between entrepreneurial strategic orientation and performance and a negative relationship between conservative strategic orientation and performance. Environmental munificence had a direct and positive impact on performance. Environmental dynamism did not have an impact on performance, but did affect both conservative and entrepreneurial strategic orientations; environmental complexity had a negative effect on entrepreneurial orientation, also with no direct impact on performance. In turn, strategic orientation mediated the relationships between dynamism and performance and between complexity and performance, but did not mediate between munificence and performance. It can be concluded that complex environments reduce the impetus for enterprising approaches, decreasing performance, and that if the reaction to a perception of dynamism is an increase in entrepreneurship, then performance also increases.

Informal institutional framework and entrepreneurial strategic orientation: the role of religion

This paper attempts to clarify the role of religion in an informal institutional framework, and its impact on small and medium sized organisations' entrepreneurial strategic orientation. For this purpose a quantitative methodology is implemented. 117 SMEs operating in Istanbul are identified through probability and stratified random sampling. This study enhances the understanding of religion's role in institutional frameworks and consequently SMEs' entrepreneurial strategic orientation behaviour. Findings show that religion is an important component of an informal institutional framework, which influences SMEs' entrepreneurial strategic orientation behaviour. The practical implications are that SMEs operate under religious guidelines, although this is not a required but rather a voluntary alignment. This article will also highlight directions for future research.

Implementation of Electronic Health Records and Entrepreneurial Strategic Orientation in Substance Use Disorder Treatment Organizations.

This research studied the relationships of the components of entrepreneurial strategic orientation (ESO) with implementation of electronic health records (EHRs) within organizations that treat patients with substance use disorders (SUDs). A national sample of 317 SUD treatment providers were studied in a period after the Health Information Technology for Economic and Clinical Health (HITECH) Act was enacted (2009) and meaningful use EHR requirements were established (2010), but before implementation of the Affordable Care Act. The study sample was selected using stratified random sampling and was part of a longitudinal study of treatment providers across the United States. After we controlled for potentially confounding variables, four components of ESO had a significant relationship with EHR implementation. Levels of slack resources in an organization moderated the relationship of ESO with meaningful use of EHRs, increasing the strength of the relationship for some components but reducing the strength of others. From a policy and practice perspective, the results suggest that training and education to develop higher levels of ESO within SUD treatment organizations are likely to increase their level of meaningful use of EHRs, which in turn may enhance the integration of SUD treatment with primary medical providers, better preparing SUD treatment providers for the environmental changes of the Affordable Care Act.

Exploring the antecedents of effectiveness and efficiency

Our knowledge of determinants of effectiveness and efficiency of firms continues to expand. However, this knowledge remains quite fragmented and non-cumulative in the service industry. Herein, this study explores the effect of entrepreneurial and financial orientations as two key contributors to performance in the service industry. Data for this study were collected from 182 hotels in Switzerland to examine the effect of a financial strategic orientation and an entrepreneurial strategic orientation on two widely-used standards of business performance—effectiveness and efficiency. We hypothesized that these effects would be more pronounced under certain dynamic environment conditions. Findings provide new insights about the merits of building bridges between the entrepreneurial orientation and financial orientation. Within the context of existing research on strategic management, we discuss the implications of our findings for hotel managers and address the study's limitations and future research directions.

The Impact of Entrepreneurial Orientation, Reconfiguring Capability and Moderation of Environmental Turbulence on Export Performance of SMEs in Nigeria

Entrepreneurial orientation encapsulate the firm –level process, practice and strategic orientation while dynamic capabilities view of firm consists of the structure routine and processes that constitute its ability to reconfigure its asset base to match the requirement of the changing environment. The aim of this research emanated from the fact that only few studies examined how entrepreneurial strategic orientation and reconfiguring capability impact on export performance of SMEs in turbulent environment. In order to fill this vacuum, this study delineated relationship among these constructs and employed PLS-SEM on data collected from 201 exporting SMEs in Nigeria. The findings of the study suggest that entrepreneurial orientation, reconfiguring capability, and environmental turbulent significantly related to export performance. Environmental turbulence moderates the relationship between entrepreneurial orientation, reconfiguring capability and export performance. This suggests that SMEs could benefit from reconfiguring and renewal of their asset base and act in response to opportunities and threat to realize first order transformation in growth and export performance. Besides, this study also provides research conclusion to the appropriateness of entrepreneurial orientation and reconfiguring capability when there is environmental turbulence and their lack of effectiveness when there is stability.

The impacts of top management team characteristics on entrepreneurial strategic orientation

Purpose– The paper aims to empirically examine the questions of how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships.Design/methodology/approach– The paper designs the panel data on the listed companies of China's Small and Medium-sized Enterprises Board for the period 2006-2010, and uses hierarchical regression analysis and grouping regression analysis when examining the relationships among variables involved.Findings– The paper provides empirical insights about how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. It suggests that, except for TMT educational background, the heterogeneity of TMT age, gender, functional experience, and the vertical dyad differences between TMT and board chairperson significantly and positively impact ESO. Furthermore, industry environment and corporate ownership will moderate the relationship between TMT characteristics and ESO.Originality/value– This paper fulfills an identified need to study how top management team characteristics influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships.

Electronic Health Records and Treatment Organization Strategic Orientation

This study examined the extent to which implementation of meaningful use of electronic health records (EHRs) by organizations treating patients for treatment substance use disorders (SUDs) is related to the level of the organization’s entrepreneurial strategic orientation. In two studies of separate samples each containing over 300 treatment organizations, we found that entrepreneurial strategic orientation accounted for over two-thirds of the variance in meaningful use of EHRs after controlling for the effects of a group of alternative organizational variables. While the relationship of specific components of entrepreneurial strategic orientation with meaningful HER use differed between studies, organizational autonomy and innovativeness were significantly related to implementation of EHRs in both studies. From a policy and practice perspective, the results strongly indicate that providing support that develops higher levels of entrepreneurial strategic orientation within SUDs treatment centers will increase their level of meaningful use of EHRs.

Entrepreneurial orientation and the franchise system

PurposeThe purpose of this paper is to understand the franchisor's perception of the role of entrepreneurial strategic orientation (EO) – innovative, risk‐taking, and proactive actions – within the special case of franchised firms, given the opposing forces for standardisation/uniformity and system innovation/adaptation.Design/methodology/approachA cross‐sectional research design, involving a mail questionnaire survey, was employed to collect data from a sample of franchisors operating in the UK. The hypotheses specified in the study were tested using a path model.FindingsThe results show that for franchise organisations, EO is positively related to performance. The recent meta‐analysis conducted by Rauch et al. also demonstrated that the correlation of EO with performance is fairly large (r=0.242). This correlation is consistent with the significant value reported in the study of 0.234. In addition, franchise system support structures were found to be important in fostering EO within the organisation.Research limitations/implicationsFuture studies may consider including other dimensions of EO, notably competitive aggressiveness and autonomy, in exploring the relevance of EO to the franchise system. It would be interesting to also use a longitudinal analysis to examine the long‐term effect of EO on the performance of franchised firms.Originality/valueThe study extends knowledge of the EO‐performance outcomes relationship to the franchising context where the role of EO is presently under‐explored. This could be attributed to the fact that the franchise concept is built on standardisation and uniformity, notions that run counter to the flexible strategies involved in fostering EO.