Entrepreneurial orientation-as-experimentation and firm performance: The enabling role of absorptive capacity

This study aimed to examine the impact of entrepreneurial orientation on firm performance through project success and moderating role of absorptive capacity. A deductive approach was used to test the model empirically. Primary data were collected at one point in time from employees of small and medium enterprises in the Kingdom of Saudi Arabia. 354 responses were used for final data analysis. The structure Equation Modeling (SEM) technique was used to analyze the hypothesized relationships by using the Smart PLS3. The findings indicate that entrepreneurial orientation has a significant impact on firm performance and project success also significantly mediates this relationship. Moreover, absorptive capacity moderates the entrepreneurial orientation impact on project success this relation becomes stronger in the presence of absorptive capacity. This study adds value to the literature and proves the mediating role of project success and moderating role of absorptive capacity. Practically, it highlights the importance of entrepreneurial activities for firm performance and project success.

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Implications of strategic flexibility in small firms: the moderating role of absorptive capacity

South Asian Journal of Business Studies ◽

10.1108/sajbs-10-2018-0104 ◽

2019 ◽

Vol 8 (3) ◽

pp. 370-386 ◽

Cited By ~ 1

Author(s):

Sanjay Chaudhary

Keyword(s):

Firm Performance ◽

Empirical Evidence ◽

Absorptive Capacity ◽

Entrepreneurial Orientation ◽

Small Firms ◽

Dynamic Capabilities ◽

Strategic Flexibility ◽

Content Type ◽

The Relationship

Purpose Guided by the theory of dynamic capabilities and the knowledge-based view of an organization, the purpose of this paper is to examine the crucial role played by entrepreneurial orientation and absorptive capacity in the relationship between strategic flexibility and firm performance, with a specific focus on small firms. Design/methodology/approach The study uses survey data collected from owners of 272 small businesses in India and follows the linear regression method to establish the link between strategic flexibility and firm performance. It hypothesizes that the strategic flexibility of a small firm impacts entrepreneurial orientation, and subsequently its performance, while absorptive capacity further enhances this relationship. Findings The conclusions drawn from the study provide empirical evidence on the mediating role of entrepreneurial orientation in the relationship between strategic flexibility and firm performance. The findings also point out that the potential absorptive capacity of a firm strengthens the relationship between its strategic flexibility and entrepreneurial orientation. Research limitations/implications The empirical findings of the study are limited to small firms from the automotive service industry. Practical implications The study contributes to the existing knowledge on managerial practice by pointing out the importance of strategic flexibility as a dynamic capability and illustrating its impact in the case of a small firm’s performance. Originality/value As yet, there is a dearth of empirical evidence derived from large samples of small firms. The study supplements available literature on dynamic capabilities and knowledge management.

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The mediating role of personality traits on the entrepreneurial orientation–firm performance relationship: informal entrepreneurship context

Journal of Global Entrepreneurship Research ◽

10.1007/s40497-021-00263-4 ◽

2021 ◽

Author(s):

Eijaz Ahmed Khan ◽

Lynne Harris ◽

Mohammed Quaddus

Keyword(s):

Firm Performance ◽

Personality Traits ◽

Entrepreneurial Orientation ◽

Mediating Role ◽

Informal Entrepreneurship

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Knowledge Management, Entrepreneurial Orientation and Firm Performance: The Role of Organizational Culture

Asian Social Science ◽

10.5539/ass.v11n23p140 ◽

2015 ◽

Vol 11 (23) ◽

Cited By ~ 3

Author(s):

Mukhtar Shehu Aliyu ◽

Halilu Bello Rogo ◽

Rosli Mahmood

Keyword(s):

Organizational Culture ◽

Knowledge Management ◽

Firm Performance ◽

Entrepreneurial Orientation

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Strategic orientations, firm performance and the moderating effect of absorptive capacity

Journal of Strategy and Management ◽

10.1108/jsma-05-2020-0121 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Manuel-Alejandro Ibarra-Cisneros ◽

María del Rosario Demuner-Flores ◽

Felipe Hernández-Perlines

Keyword(s):

Firm Performance ◽

Market Orientation ◽

Absorptive Capacity ◽

Entrepreneurial Orientation ◽

Manufacturing Firms ◽

Moderating Effect ◽

Equation Modeling ◽

Content Type ◽

Strategic Orientations ◽

The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

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