High Levels Of Entrepreneurial Orientation Research Articles

Entrepreneurial cooperatives: The impact of entrepreneurial orientation on economic and social performance

Although most SMEs are corporations, a substantial proportion are cooperatives and direct competitors in the same business areas. Cooperatives are an organizational alternative combining the ingredients for a sustainable and equal economy in its business model. However, they are often alleged to be inefficient and structurally inert compared to corporations. It is not clear how cooperatives manage to be innovative and efficient, given the characteristics of the cooperative model. Furthermore, there is a lack of understanding how an entrepreneurial orientation (EO) helps them to perform in competition. This study theoretically and empirically examines whether cooperatives benefit from EO in their multi-dimensional goal system. Additionally, the study asks how cooperative-specific collective characteristics relate to EO and performance. Using cross-sectoral data of 368 cooperatives in Switzerland and applying structural equation modelling (PLS), the results show that EO is significantly and positively linked to economic performance. Inter- and intraorganizational cooperation is associated with higher levels of EO and indirectly affects performance through EO. The results suggest that cooperatives, like other SMEs, benefit from EO in competition and can take advantage of cooperative-specific characteristics.

Mediating effect of Access to Finance in the relationship between Entrepreneurial Orientation and Performance of Women-Owned MSME in Nigeria

This study investigates the mediating effect of access to finance in the relationship between entrepreneurial orientation and MSME performance of women businesses in Kaduna State, Nigeria. To achieve this purpose, a sample size of 356 owners and/or managers who operate businesses in the Kaduna State and are registered in the Government Enterprise and Empowerment Program (GEEP) 2.0 were selected. The study employs a multi-stage sampling technique, incorporating Likert scale-based questions for data collection. Data analysis involves Partial Least Squares Structural Equation Modelling (PLSEM) using Smart PLS 4 and the results indicate a positive significant effect of entrepreneurial orientation on MSME performance of women businesses, suggesting that higher levels of entrepreneurial orientation are linked with enhanced performance. The Mediation analysis reveals that access to finance mediates the effect between entrepreneurial orientation and MSME performance of women businesses. The study recommends targeted financial support programs and enhanced financial inclusion to improve access to finance for women entrepreneurs. While acknowledging limitations, the research underscores the importance of entrepreneurial orientation and financial access in fostering the MSME performance of women businesses, providing valuable insights for policymakers, practitioners, and academics.

Examining the role of big data and marketing analytics in SMEs innovation and competitive advantage: A knowledge integration perspective

The age of digitisation has resulted in an explosion of studies investigating the benefits of Big Data Analytics (BDA) as a means to enhance competitive advantage in organisations. However, the best way to leverage BDA is still inconclusive. Moreover, there is paucity of studies investigating how SMEs, who are recognised as having high levels of entrepreneurial orientation, can utilise big data and marketing analytics to support innovation and competitive advantage in dynamic environments. This study employs dynamic capabilities as a lens to investigate the nuanced relationships. Adopting a partial least squares (PLS) path modelling method with 194 UK SMEs, this study finds that knowledge integration mechanisms are particularly critical value creation enablers by transforming EO and BDA into organisational wide capabilities in support of innovation and competitive advantage. These novel and nuanced insights are of value to both practitioner and researchers.

The Influence of Entrepreneurial Orientation, Network, Market Orientation on Small Business Performance in West Java Province

This study aims to investigate the effect of entrepreneurial orientation (EO), network, and market orientation on the performance of small businesses (Small Business Performance) in West Java Province. Data was collected from 300 small business owners using a structured questionnaire. The results of multiple regression analysis show that the three independent variables have a significant positive effect on SBP. Market orientation has the strongest effect on SBP, followed by EO and network. The findings show that small business owners who have high levels of EO, network, and market orientation tend to perform better than those who have low levels of these characteristics. Small business owners in West Java Province can improve their performance by investing in developing EO capabilities, networks, and their market orientation. Future research can investigate the role of other variables, such as innovation, technology adoption, and strategic planning, on the performance of small businesses in West Java Province.

Entrepreneurial Orientation and Entrepreneurial Performance among Female Entrepreneurs: Empirical Evidence from Kenya

The purpose of this paper was to study whether entrepreneurial performance can be explained by entrepreneurial orientation among female entrepreneurs in Kenya. This empirical research is based on the data from 301 micro and small enterprises (MSEs) located in Kenya. A linear multiple regression analysis on the effect of entrepreneurial orientation on entrepreneurial performance among the female entrepreneurs was conducted. The paper focused on the five aspects of entrepreneurial orientation (risk-taking, innovativeness, pro-activeness, competitive aggressiveness and autonomy) and their ability to prompt entrepreneurial performance which was defined as firm performance, development of personal wealth and social performance. Social performance was rather well predicted by entrepreneurial orientation (by 4 out of 5 aspects), whereas firm performance was only limitedly predicted by entrepreneurial orientation (only by 2 out of 5 aspects) and development of personal wealth was not predicted by entrepreneurial orientation at all (by 0 out of 5 aspects). On the other hand, we see that the entrepreneurial orientation aspects of innovativeness and pro-activeness have the most predictive value (for 2 out 3 entrepreneurial performance indicators), whereas risk-taking and autonomy have only limited predictive value (for only 1 out of 3 entrepreneurial performance indicators) and competitive aggressiveness has no predictive value at all (for 0 out of 3 entrepreneurial performance indicators). The paper is based on own-collected empirical data. The paper indicates that the benefits of aligning high levels of entrepreneurial orientation is not unanimous but varies across the different aspects of entrepreneurial orientation and the different entrepreneurial performance indicators.
 

Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity

This paper analyzes the influence of small and medium-sized enterprises' (SMEs) entrepreneurial orientation (EO) on its capacity to quickly introduce new products to the market (namely, speed to market). Specifically, we suggest that firms will exhibit greater speed to market when displaying either low or high levels of EO. We also suggest that the EO – speed to market relationship will be contingent on firms' ambidexterity, or its capacity to simultaneously embrace exploratory and exploitative strategies. To test our hypotheses, we collected survey data from 384 SMEs belonging to four sectors in Spain: biotechnology, ceramic tiles, toys and footwear. Our findings confirm the existence of a U-shaped connection between EO and speed to market, and evidence that this curvilinear relationship is accentuated when SMEs exhibit greater ambidexterity.

Entrepreneurial orientation and vertical knowledge acquisition by smallholder agricultural firms in transitional economies: The role of interfirm collaboration in value-chains

This study extends the understanding of entrepreneurial orientation (EO), vertical knowledge acquisition, and actor collaboration to a “whole of value-chain” perspective in transitional economies by investigating a subsistence smallholder agricultural value-chain. It examines the relationships between EO and vertical knowledge acquisition and the role of value-chain collaboration. It also contributes to the understanding of entrepreneurship as an economic development tool by considering how EO moderates the effect of value-chain actor collaboration on acquiring market and consumer knowledge by subsistence upstream actors within value-chains. Data were collected through a survey of smallholder value-chain shifting from selling to local wet markets to selling to cattle collectors and traders and through a value-chain to retailers. The findings suggest that higher levels of EO by smallholders and SME agribusinesses enhance the acquisition of vertical knowledge such as market and consumer preference information throughout the value-chain, and interfirm collaboration positively moderates this relationship.

Keeping millennials from quitting due to work stress: The roles of mattering, commitment and entrepreneurship orientation

Studies in pre-pandemic era had established that millennial workers tend to leave their job due to low organizational commitment or strong entrepreneurial orientation; however, the pandemic had brought down economy due to lockdowns, work stress and mental health instability, limitation of business hours, working from home policy, downsizing of companies, and many other changes. This situation might contribute to a novel situation among millennial employees and their turnover intention might be developed differently. Because mattering has protective feature against work stress and depression, we hypothesized that their it will negatively contribute to their turnover intention, and this contribution is mediated by the organizational commitment. Furthermore, we also hypothesized that this phenomenon would only occur in the condition of lower levels of entrepreneurial orientation. Data was collected from 354 purposively recruited millennial employees who responded to the scales of mattering, organizational commitment, entrepreneurial orientation and turnover intention through online surveys Analyses were conducted with Bootstrap Method in PROCESS Macro Model 10. The findings indicated that the moderated mediation occurred; organizational commitment fully mediated the link between mattering and turnover intention among participants with moderate and high levels of entrepreneurial orientation.

Corporate Identity, Entrepreneurial Orientation and Cultural Values of Manufacturing Companies in Southern Philippines

The objectives of this study were to investigate and understand whether entrepreneurial orientation and cultural values could determine the corporate identity of manufacturing companies in Southern Philippines. This study utilized a combination of descriptive correlation design and survey design. A total of 426 regular employees responded to the survey. Empirical results revealed high levels of entrepreneurial orientation, cultural values and corporate identity. Before performing out a statistical regression test, validation checks were conducted to assess whether regression assumptions were not violated. Further, findings found that cultural values have the greatest impact on corporate identity. The manufacturing companies have a common goal with their employees to achieve strong corporate identity. Establishing a favorable corporate identity highly necessary.

Entrepreneurial orientation and the fate of corporate acquisitions

Does a firm’s entrepreneurial orientation (EO) play a role in creating or destroying value through corporate acquisitions? Extant research has sought to assess the influence of EO across a multitude of strategic contexts, but to-date has not addressed business venturing through acquisitions. Given that worldwide deal values since 2000 total more than $57 trillion, the omission has become conspicuous. In response, this study investigates the relationship between EO and acquisitions through an analysis of 500 randomly selected deals consummated by U.S. firms between 2001 and 2012. The findings suggest EO’s impact on acquisition-related outcomes is ultimately a matter of degree, with curvilinear effects driven by interactions between EO and three key contingencies: relatedness, method of payment, and acquisition premiums. For each of these moderators, high and low levels of EO are associated with value destruction, while moderate levels, on average, generate positive returns for acquiring firms. However, the relationship is not symmetrical. Firms exhibiting high levels of EO experience significantly worse acquisition-related returns than firms with low EO. The study contributes conceptual, empirical, and methodological insights for both scholars and practitioners by viewing acquisitions through the lens of EO.

Chief Executive Officer's traits and open innovation in small and medium enterprises: the mediating role of innovation climate

PurposeThis paper aims to study the impact of Chief Executive Officer's (CEO's) personality traits on open innovation (OI) strategies and the mediating effect of innovation climate by mobilizing the upper echelons theory and the OI literature. In fact, CEO's role in OI promotion has been under-investigated in the literature especially in small and medium-sized enterprises (SMEs) and in developing economies.Design/methodology/approachBased on the structural equation modeling, a survey is scheduled by administrating a questionnaire within 178 CEOs in Tunisian high-tech sector. The relevance of the empirical evidences is to disclose human levers to the success of OI strategies in the Tunisian context as a developing country.FindingsThe results show the importance of CEO's entrepreneurial orientation (EO) and attitude in promoting innovation climate and so then OI strategies. The study offers a reading grid for managers of high-tech SMEs to better lead and identify key factors for OI adoption. Innovative climate is found to be a relevant driver of OI encompassing the key role of attitude and EO of top managers.Practical implicationsResults highlight the relevance of the recruitment of appropriate top managers with high levels of EO and with positive attitude toward OI in order to facilitate OI integration and to enhance SMEs' competitiveness. Entrepreneurially oriented CEOs should be required in order to overcome "Not Invented Here" and "Not Shared Here" syndromes, to support innovative climate and to encourage knowledge import and export in the Tunisian SMEs.Originality/valueThis paper sheds light on the micro-foundation of OI by emphasizing the relevance of human factors and namely EO and attitude of CEOs in OI issue. It provides conceptual and empirical clarification of the extent to which CEO's traits affect OI through innovative climate. This would value initiatives exploring key individual's characteristics influence on OI strategies within SMEs.

Many roads lead to Rome: How entrepreneurial orientation and trust boost the positive network range and entrepreneurial performance relationship

Due to liabilities of smallness and newness for entrepreneurial firms, decisions surrounding the sufficient leveraging of diverse information, knowledge, and resources used to pursue market opportunities are critical. Prior research has emphasized that network range is essential to improve entrepreneurial performance. However, research on boundary conditions of this relationship is still scant. Based on the social capital theory, this study advances research on the aforementioned relationship by integrating different dimensions of social capital and focusing on the three-way interaction of entrepreneurial orientation (EO) and trust. Based on data from a time-lagged two-wave survey of 389 firms in an emerging economy, we confirm the positive network range-performance relationship and find that EO strengthens the relationship between network range and entrepreneurial performance. Furthermore, findings suggest that network range can generate superior performance when aligned with the high levels of EO and cognitive trust, thus confirming the proposed three-way interaction. Overall, these findings contribute to a better understanding of how to facilitate network connections to enhance entrepreneurial performance.

Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization

Technology is rapidly changing the financial industry. Banks, in particular, are faced with a shift from traditional, interpersonal forms of service to digital financial services. These digital technologies are more and more becoming today’s standard in the banking sector, they challenge traditional business models, and they provide opportunities for banks to capitalize on. Building on the concept of entrepreneurial orientation (EO), this study of banks in Germany, Switzerland, and Liechtenstein aims at developing insights that explain how banks can use the tactics and strategies associated with EO to achieve superior performance in the digitalization age. The results from a survey in 102 banks show that: 1) banks that display high levels of EO report a higher level of performance, and 2) the relationship between a banks’ strategic vision on digitalization, and performance is moderated by EO. These results indicate that the sheer level of the digitalization of a bank does not affect profitability. Instead, in this time of technological change banks should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks.

Exploration of the entrepreneurial orientation and trait emotional intelligence in practicing pharmacists

ObjectivesThe objectives of this study were 3-fold: to determine if there are differences in the level of entrepreneurial orientation (EO) of pharmacists in 5 upper Midwestern states; to determine if the EO of the pharmacists differs with age, sex, employment status, practice setting, or practice role; and to determine if there is a positive assocation between trait emotional intelligence (EI) and EO. DesignItem analysis, descriptive statistics, 1-way analysis of variance, Tukey test, Levene test of homogeneity of variances, Kruskal-Wallis tests, Pearson correlation coefficients, and an independent samples t test were used to analyze survey data. Setting and participantsPharmacists in upper Midwest states. Outcome measuresEO and trait EI of pharmacists. ResultsPharmacists practicing in different settings exhibited no differences in EO; however, statistically significant differences were found in the EO of pharmacists by sex, age, and practice role. Pharmacists who owned a pharmacy had higher mean EOs for the constructs risk-taking, innovativeness, proactiveness, and autonomy. A positive correlation was found between global trait EI and all constructs of EO, suggesting that global trait EI could be used to predict EO in individuals. ConclusionIt was identified that EO can be measured at the individual level. A high EO suggests that a person may have a higher interest or success with entrepreneurial activities. High levels of EO were found among pharmacists in the roles of owner or manager than those in the role of staff. A positive correlation was found between global trait EI and all constructs of EO, suggesting that global trait EI could be used to predict EO in individuals. Understanding EO at an individual level could be valuable to pharmacists who are interested in owning a pharmacy or in providing new patient services. A high trait EI could indicate greater entrepreneurial potential leading to greater career success.

Narcissism, Machiavellianism, and Psychopathy of Top Managers

Numerous studies show that high levels of Entrepreneurial Orientation (EO) in firms positively influence firm performance. Yet, high levels of Dark Triad (DT) traits - narcissism, Machiavellianism, and psychopathy - of managers might work detrimental to EO. Our study empirically tests if top managers who score high on Dark Triad traits have a negative influence on firm performance, reducing the merits of EO. Results of a survey study on 191 firms show that all three dimensions of the DT, narcissism, Machiavellianism, and psychopathy, suppress the positive effects that EO has on firm performance. Accordingly, selfish behaviour, emotional coldness, propensity for duplicity, and top managers' quest for self promotion, status, and dominance lead to behaviour that reduces the positive influences around innovativeness, proactiveness, and risk-taking of EO.

Narcissism, Machiavellianism, and psychopathy of top managers: Can Entrepreneurial Orientation secure performance

Numerous studies show that high levels of Entrepreneurial Orientation (EO) in firms positively influence firm performance. Yet, high levels of Dark Triad (DT) traits - narcissism, Machiavellianism, and psychopathy - of managers might work detrimental to EO. Our study empirically tests if top managers who score high on Dark Triad traits have a negative influence on firm performance, reducing the merits of EO. Results of a survey study on 191 firms show that all three dimensions of the DT, narcissism, Machiavellianism, and psychopathy, suppress the positive effects that EO has on firm performance. Accordingly, selfish behaviour, emotional coldness, propensity for duplicity, and top managers' quest for self promotion, status, and dominance lead to behaviour that reduces the positive influences around innovativeness, proactiveness, and risk-taking of EO.

Resilient agility in volatile economies: institutional and organizational antecedents

PurposeThe purpose of this paper is to scrutinize the interplay between resilience and agility in explicating the concept of resilient agility and discuss institutional and organizational antecedents of resilient agility in volatile economies.Design/methodology/approachThe authors develop a conceptual framework that offers an original account of underlying means of ambidextrous capabilities for organizational change and behaviors in volatile economies and how firms stay both resilient and agile in such contexts.FindingsThe authors suggest that resilient agility, an ambidextrous capability of sensing and acting on environmental changes nimbly while withstanding unfavorable disruptions, can explain entrepreneurial firms’ survival and prosperity. The authors then address institutional (instability and estrangement) and organizational (entrepreneurial orientation (EO) and bricolage) antecedents of resilient agility in volatile economies.Originality/valueThe authors highlight that unfavorable conditions in volatile economies might have bright sides for firms that can leverage them as entrepreneurial opportunities and propose that firms can achieve increased resilient agility when high levels of institutional instability and estrangement are matched with high levels of EO and bricolage.

The nonlinear relationship between entrepreneurial orientation and sales growth: The moderating effects of slack resources and absorptive capacity

The present study aims to advance the understanding of the complex and context-dependent relationship between entrepreneurial orientation (EO) and firm sales growth by investigating the linearity assumption and assessing the moderating role of financial slack resources and absorptive capacity in the mature industry context. Departing from some recent EO studies, the analysis based on a dataset of 86 companies operating in the food manufacturing industry suggests that EO has a nonlinear relationship with sales growth. Moreover, the results suggest that in companies with high levels of slack resources, an increase in EO from low to moderate levels accelerates sales growth; however, to capitalize on the sales growth potential of high EO, a high absorptive capacity is also required. Thus, the present study demonstrates a nonlinear effect of EO on sales growth, and particularly from moderate to high levels of EO, the positive moderating effects of absorptive capacity and slack resources.

Behavioral and Environmental Influences on Entrepreneurial Orientation

Traditionally, theories of innovation and entrepreneurship have concentrated on either environmental or dispositional variables to explain different rates and levels in entrepreneurial activity. However, these theories have unsuccessfully represented the complexity of human behavior actions involve the interaction of various environmental, cognitive, and behavioral variables. Recognizing this shortcoming and considering that contextual influences on entrepreneurial behavior in an emerging market context are rarely accounted for, this study empirically examined the degree to which individual-level variables of entrepreneurial alertness and self-efficacy interact with environmental dynamism and hostility to influence a firm’s entrepreneurial orientation. Appreciating the multiplicity of elements facing an entrepreneur who is trying to make sense of the external environment, the study surveyed 310 owner-mangers in South Africa and relied on SEM to determine the best model fit. The study findings reveal that as a result of mediating and interaction effects, an individual with higher levels of alertness and self-efficacy is more likely to be innovative, engage in risk-taking behavior and show pro-activeness, in other words, have higher levels of entrepreneurial orientation. It is recommended that policymakers encourage entrepreneurial orientation by fostering a high-support route in which the effects of the hostile environments are minimized to encourage higher levels of innovation. Moreover, scholars can build on these findings by investigating the interconnectedness of exogenous environmental and individual factors in terms of explaining entrepreneurial orientation.

The influence of the regulatory, normative and cognitive institutions on entrepreneurial orientation in South Africa

Understanding the impact that the institutional environment may have on entrepreneurial orientation (EO) in an under-explored African context is important, considering that researchers argue that firms can leverage entrepreneurship to respond to and take advantage of the institutional environment. Rather than merely use an EO aggregate, this article provides a more nuanced approach by analysing how the regulatory, normative and cognitive institutional environments influence each of the EO dimensions. The article hypotheses are confirmed where results highlight the importance of the institutional forces in shaping EO innovativeness, risk-taking and proactiveness. In particular, the cognitive institutional dimension plays a significant role in determining a firm’s EO levels, as educational attainments and other forms of human capital investments are in short supply in Africa, making them highly prized resources for firms engaged in EO. Implications suggest that firms in emerging market environments need to foster high levels of EO to effectively deal with the institution-specific conditions.