Orientation Performance Relationship Research Articles

DRIVEN BY EMOTIONS: THE MODERATING EFFECT OF SOCIOEMOTIONAL WEALTH DIMENSIONS ON THE LINK BETWEEN ENTREPRENEURIAL ORIENTATION AND INNOVATION PERFORMANCE IN FAMILY FIRMS

This study examines the influence of socioemotional wealth (SEW) dimensions on the relationship between entrepreneurial orientation (EO) and innovation performance in family firms. Based on an analysis of a dataset comprising 145 family firms, our findings provide evidence that SEW positively moderates the association between EO and innovation performance. Notably, the dimension ([Formula: see text]) emotional attachment of family members within SEW solely drives this interaction effect. Surprisingly, none of the other dimensions exhibit a significant moderating effect on the entrepreneurial orientation–innovation performance relationship. Furthermore, the overall moderation is substantially more pronounced for multidimensional SEW than for unidimensional SEW. Our findings challenge the results of previous studies on the entrepreneurial orientation–performance relationship in family firms, which considered SEW as unidimensional. Finally, we discuss implications for corporate entrepreneurship as well as SEW literature and provide directions for future research.

Environmental uncertainty and the entrepreneurial orientation–performance relationship among East Asian new technology-based firms: an institutional perspective

Environmental uncertainty and the entrepreneurial orientation–performance relationship among East Asian new technology-based firms: an institutional perspective

Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model

The study examines the interaction effects of constructive politics and market turbulence on the entrepreneurial orientation–performance relationship. The proposed structural model tests the mediating role of constructive politics between the entrepreneurial orientation and performance constructs and the moderation effect of market turbulence on this mediating relationship. Data were collected from 145 small and medium-sized enterprises (SMEs) in the United Arab Emirates. The results suggest that entrepreneurial orientation indirectly affects performance through constructive politics. Furthermore, the results indicate that the relationship between constructive politics and the firm's performance was stronger during low market turbulence. Findings suggest that entrepreneurial-oriented SMEs should embrace constructive politics where influence and power can be channeled to enhance financial performance, especially in market stability.

Growing up but still be entrepreneurial? The entrepreneurial orientation–performance relationship

The relationship between entrepreneurial orientation (EO) and performance has received significant attention within entrepreneurship research. Yet, the mechanisms that underpin the EO-performance relationship are not fully understood. Recent developments such as an improved theoretical understanding of the manifestation and pervasiveness of EO highlight the need for a more nuanced understanding of EO by investigating nonmanagerial employees’ behaviors and attitudes of EO. Via an in-depth case study of a high-tech venture in Germany, we examine a set of proactive, innovative, and risk-taking behavioral patterns that contribute to the proliferation of EO within firms as they grow. Our study reveals that the employee’s more inwardly focused orientation is directed towards coping with challenges the firm faces during growth-related organizational transformations, rather than introducing innovations in the business or experimenting with opportunities. We conclude that EO is an individual-level construct and a key element in the causal link between organizational performance.

Family business risk-taking and financial performance: Is it easier said than done?

In this study we reconcile the contradictory evidence found in the risk taking-performance relationship. We study the distinction between risk taking orientation and entrepreneurial risk taking and their effects on performance and find a non-linear, U-shaped relationship when it comes to risk taking orientation. Even though we did not find evidence that pursuing risky activities has an inverted u-shaped form, our results confirm that pursuing risky activities in family firms has similar effects than in non-family firms. We also study the role of context on family business risk attitudes and actions, and performance and find moderating effects at the industry, market and country levels on the risk taking orientation-performance relationship and partially, on the entrepreneurial risk taking-performance relationship.

Managing Organizational performance of pharmaceutical SMEs in Indonesia: Examining the Role of Entrepreneurial Orientation and Organizational Learning in a Mediated Model

The theme of the current research is to assess the link between entrepreneurial orientation, organizational learning with organizational performance using structural equation modeling. The current work was based on a quantitative approach using cross-sectional survey methodology. The study examined the effect of entrepreneurial orientation (EO) on organizational learning (OL), organizational performance (OP), and of organizational learning (OL) on organizational performance (OP). Moreover, the study also examined the mediating effect of organizational learning (OL) in the relationship between entrepreneurial orientation (EO), and organizational performance (OP). Data were collected from managers and owners of manufacturing pharmaceutical SMEs in Indonesia. A sample of 340 was selected by using the purposive sampling technique. The results support in current empirical model confirming all the direct hypothesized relationships. The study results also revealed mediation of organizational learning in the entrepreneurial orientation and organizational performance relationship. Considering the association of the factors studied in the current research, the authors imply managers, owners to develop a learning-oriented environment. The implication sections provide further details based on the results.

The impact of market orientation on university spin-off business performance

Extant literature on the antecedents of university spin-off (USO) business performance has developed with the aim of highlighting those drivers that could foster the performance of such firms, focusing on a variety of factors. Less interest has been devoted to the market orientation–performance relationship, despite the positive link frequently found in the marketing literature. The aim of the present paper is therefore to fill this gap and investigate the relationship between market orientation (MO) and USO performance using the Netval database of Italian research spin-offs. To measure MO, we adopted an ad hoc questionnaire, and after testing its validity with a factor analysis, we performed a regression model. The results show that MO, particularly some of its components (customer intelligence generation, intelligence dissemination, integration and inter-functional coordination), has an impact on business performance. This contribution presents some valuable research implications useful for academics, but professionals from new high-tech ventures and technology transfer offices may also benefit from this knowledge.

The role of organizational justice in the customer orientation–performance relationship

PurposeWhile companies have increasingly encouraged employees to adopt a customer orientation, less attention has been given to the impact that customer orientation has on employees' job outcomes and performance. Previous research has used job demands-resource theory (JD-R) and proposed several mechanisms through which customer orientation influences performance, yet the intervening variables in the process have shown inconsistent results. The purpose of this paper is to investigate the contextual role of organizational justice on the relationship between customer orientation and performance through work engagement. In this way, offering more understanding of the contingent effects that intervene in the customer orientation–performance relationship.Design/methodology/approachUsing a structural equation model (SEM) in a sample of 249 marketing, sales and management managers in Chilean companies, this paper tested different hypotheses concerning the role of work engagement, organizational justice and customer orientation in relation to perceived performance.FindingsThis study informs that organizational justice (procedural and distributive justice) moderates the relationship between customer orientation and performance through work engagement. Precisely, the findings reveal that at lower values of organizational justice, changes in customer orientation negatively influence work engagement and in turn performance.Originality/valueThe results contribute to strengthening customer orientation theory by integrating a contextual variable often omitted: organizational justice. By exploring the moderation effect of organizational justice on customer orientation, this paper reveals contingent effects of employees' perceived fairness on the organization in the relationship between customer orientation and performance through work engagement. The findings encourage managers to look after employees' perceived organizational justice when they implement customer-oriented approaches, in particular, of those employees who work in the frontline sales and service positions.

Customer Orientation, Innovation and the Mediating Role of Crowdsourcing in Organizational Performance

This study aims to explore the relationship between customer orientation, innovative and organizational performance as well as to ascertain crowdsourcing’s mediating role in augmenting innovative performance in the Turkish Defense and Aerospace Industry. A survey was distributed to 54 C-level executives who are members of Turkish Defense and Aerospace Manufacturers Association (SaSAD). First, a regression analysis was used to predict the impact of customer orientation on innovative and organizational performance. Then, a hierarchical regression analysis was performed to assess if crowdsourcing has a positive impact on enhancing innovative performance. While customer orientation has a somewhat moderate impact on organizational performance, it enhances organizations’ innovative performance to a great extent. Furthermore, while innovative performance does not have an immediate positive impact on organizational performance in the short-term, crowdsourcing significantly helps organizations to augment their innovative performance. Whereas extant studies of strategic orientation have focused mainly on the orientation–performance relationship, very few studies provided quantitative evidence regarding the exclusive impact of customer orientation on performance. More importantly, this study aims to explore the mediating role of crowdsourcing between customer orientation and innovative performance in the Turkish defence and aerospace industry, which has a completely peculiar structure.

Customer orientation and financial performance relationship: the mediating role of innovative capability

Abstract: Existing research establishes customer orientation (CO) per se as insufficient to achieve higher levels of financial performance (FP). Such reasoning suggests the need for additional skills and capabilities, such as, innovative capability (IC). In addition, environmental variables (e.g., Technological Turbulence – TT) affect these relationships. This paper explores the relationships and effects of CO and IC on FP under different TT conditions. A research framework and hypotheses were developed. The framework captures the following relationships: (i) the direct influence of CO on FP; (ii) the mediating role of IC on the CO/FP relationship; (iii) the moderating role of TT over the mediation of IC on the CO/FP relationship. The fieldwork included an exploratory stage, followed by a cross-sectional survey applied to managers in medium-sized companies in Brazil. Findings revealed that IC partially mediates the relationship between CO and FP, in particular in high TT environments. Managerial implications and avenues for future research are presented.

Strategic orientations and performance of young ventures

PurposeConsidering that entrepreneurial orientation (EO) and market orientation (MO) are antecedents of firm performance, and that technological turbulence (TT) and competitive intensity (CI) are present in different degrees in the business environment, the purpose of this paper is to address the following question in the context of young ventures: What is the contingent effect of TT and CI on MO–performance and EO–performance relationships?Design/methodology/approachThis paper follows a deductive research approach. First, the literature on strategic orientation, opportunities, and dynamic capabilities (DCs) view are reviewed to formulate hypotheses. Then moderated hierarchical regression analysis is used on data collected from entrepreneurs/top managers of a multi-country (India and the UK) sample of young ventures.FindingsThe results of this study provide empirical evidence to the argument that both EO and MO, when looked from the universal approach, positively affect young ventures’ performance. The results show that young venture should consider environmental contingencies while choosing a strategic orientation. For resource-starved young ventures, EO is beneficial when the environment is intensely competitive, and MO is advantageous when the environment is technologically turbulent.Originality/valueThis study relies on the literature on opportunities and DCs view to arrive at hypotheses specific to young ventures. The paper empirically tests the assertions, finds support for the majority of them and reports unbiased estimates of the coefficients. It also clarifies the contrary observation made by some researchers in their study of orientation–performance relationship.

Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation

Research has established the relevance of entrepreneurial orientation (EO) to firm performance but skepticism remains because of the ambiguity surrounding how EO might improve firm performance. We examine the key concepts of absorptive capacity and improvisation as two alternative learning modes serving as intermediate steps between EO and firm performance. Locating our study within manufacturing SMEs in Malaysia, we find that absorptive capacity enhances the EO–performance relationship, both as a moderator and a mediator. In contrast to expectations, however, improvisation showed no such effects but conferred its own separate benefits instead. We further discuss the different effects of these learning modes on high performance and low performance groups.

Impact of Environmental Turbulence on Market Orientation–Business Performance Relationship in SSIs

Market orientation–performance relationship is moderated by competitive intensity, market turbulence and technological turbulence. The primary data for the study were collected using census method from 150 owners, sales managers and marketing managers of small-scale industries (SSIs) registered in Battal Ballian Industrial Estate in Udhampur, J&K. Output from moderated regression analysis revealed insignificant impact of market turbulence but significant impact of technological turbulence and competitive intensity on market orientation–business performance relationship. Subgroup analysis showed that higher the level of technological turbulence, weaker is the market orientation– business performance relationship, and higher the level of competitive intensity, higher is the market orientation–business performance relationship. The article suggests that SSIs should be induced to create a competitive environment by extending markets of their products, adding new products to their lines and catering to the needs of new sets of customers. They must keep themselves updated with new technologies through either collaboration with large-scale units or linkages with R&D labs within or outside India. Managers are suggested to use information technology effectively to enable new value creation processes, inter-functional coordination and linkages with external stakeholders. Further, the government should take steps to meet expansion needs of SSIs by providing concessional infrastructure conducive for competitiveness and business sustainability.

Export strategic orientation–performance relationship: Examination of its enabling and disenabling boundary conditions

This study finds that the form of relationship between export strategies – entrepreneurial orientation (EO) and export market orientation (MO) – and export sales performance is curvilinear and dependent on levels of intra-firm resource coordination capabilities. Findings from primary data drawn from new international ventures reveal that increased changes in combined EO and MO strategies lead to decreases in export sales performance. Results further indicate that when levels of resource coordination flexibility and MO are higher the effect of EO on performance is strengthened. However, when levels of MO increase in magnitude along with higher levels of resource coordination flexibility, the levels of sales performance decrease. A natural conclusion to draw is that new international ventures that develop their MO resources and align these with their intra-firm resource coordination competencies will fully realize the export sales benefits of their EO activities.

Firm Growth in Family Businesses—The Role of Entrepreneurial Orientation and the Entrepreneurial Activity

Previous studies show that growth is an important goal for businesses, but little is known of how the entrepreneurial orientation–performance relationship works in family businesses and how this differs from their nonfamily peers. We examine that and how entrepreneurial activity mediates the relationship in family and nonfamily businesses. Our results on 532 firms show that family businesses benefit from innovative orientation, which is both directly and indirectly associated with firm growth via entrepreneurial activity. This association does not exist in nonfamily businesses. Furthermore, risk taking does not influence family business growth even if it does in nonfamily businesses.

On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation–Performance Relationship

The relationship between entrepreneurial orientation (EO) and firm performance is among the best–researched topics in entrepreneurship research. These studies have been conducted in various national contexts. While a first meta–analysis by Rauch et al. finds no significant difference between EO's effects based on the continent in which the firm is based, the present study considers how national cultural and macroeconomic drivers impact the EO–performance relationship. Building upon 177 studies with data from 41 countries, the meta–analysis consolidates this literature stream, contributing to the evidence–based entrepreneurship research.

Value-creating mechanisms within the market orientation–performance relationship: a meta-analysis

The authors use meta-analysis to identify organizational mechanisms within the market orientation-performance relationship and to assess the implications of correlations between market orientation and complementary organizational orientations for that relationship. The meta-analysis is based on an integration of extant research of the relationships between market orientation and value-creating marketing capabilities as well as between organizational performance and market orientation, complementary organizational orientations, and value-creating marketing capabilities. The meta-analysis identifies the unique contribution of market orientation to organizational performance. Relationships between market orientation and specific organizational orientations detract from the necessity of market orientation as a precursor to organizational performance. Consistent with expectations, market orientation was found to relate differentially but still more strongly to specific types of firm-level value-creating marketing capabilities than to organizational performance. Results indicate that market orientation may affect performance primarily through its relationships with value-creating marketing capabilities.

The Market Orientation–Performance Relationship: The Empirical Link in Export Ventures

This study examines the empirical link between three dimensions of market orientation, namely, customer orientation, competitor orientation and interfunctional coordination, and overall export marketing performance in Indonesian export market ventures. The study was based on an empirical investigation of firms involved in exporting to foreign countries from Indonesia. The primary data for the study were collected from a self‐administered mail survey of 877 export market ventures from the manufacturing sector in Indonesia resulting in a sample of 109 usable responses being returned. From the application of the multiple regression analysis it was concluded that all three dimensions of market orientation had a significant impact on export marketing performance when measured via a composite measure of export marketing performance that included economic indicators, strategic indicators, and satisfaction with performance. © 2013 Wiley Periodicals, Inc.

The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth

Drawing on socioemotional wealth (SEW) literature, this paper revisits the established entrepreneurial orientation (EO)–performance relationship in a family business context. The main idea in entrepreneurship literature is that EO leads to increased firm performance. We question this logic in a family business context because family related non-financial goals, like SEW, may prevent the firm to reap the fruits of their entrepreneurial efforts. Specifically, we argue that SEW engenders inefficiencies that place constraints on the realization of the benefits of entrepreneurship. Therefore, we propose that a high level of SEW preservation hinders the transmission of the family firm’s EO into positive performance effects. To test this hypothesis, an empirical study was developed using a sample of 232 Belgian private family firms. Robust linear regression analysis reveals that the positive effect of EO on financial performance decreases as the level of SEW preservation increases.

What about new entry? Examining the theorized role of new entry in the entrepreneurial orientation–performance relationship

It has been well over a decade since Lumpkin and Dess first suggested new entry to represent the principal outcome of an entrepreneurial orientation (EO). Yet, little consideration has been given to the implications of conceptualizing new entry as a phenomenon distinct from EO. This article draws attention to inconsistent assumptions concerning the role of new entry across the two dominant conceptualizations of EO, discusses empirical challenges with exploring new entry as an outcome of EO, and provides a longitudinal test of the causal chain linking EO to future new entry behaviors and eventual performance outcomes.