Casting a wider performance net: The role of entrepreneurial orientation in boosting overall firm stakeholder value

2015 ◽  
Vol 22 (2) ◽  
pp. 272-290 ◽  
Author(s):  
Ali M Shahzad ◽  
William J Wales ◽  
Mark P Sharfman ◽  
Christopher M Stein
Keyword(s):  
Financial Performance ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Firm Financial Performance ◽  
Strategic Posture ◽  
Significant Relationships ◽  
Firm Innovativeness

AbstractThis study offers a broader perspective on the effects of entrepreneurial orientation beyond its well-established implications for firm financial performance. Herein, it is suggested that through higher firm innovativeness, risk taking, and proactiveness entrepreneurial orientation contributes to an increase in the overall value accrued by the firm’s base of stakeholders. In doing so, we offer a broader perspective on the significance of an entrepreneurial orientation strategic posture for increasing stakeholder value beyond simply the financial value captured by firm shareholding stakeholders. Results from a comprehensive sample of 1,015 public US corporations indicate significant relationships between the three core dimensions of entrepreneurial orientation (innovativeness, risk taking, proactiveness) and stakeholder value, suggesting that how organizations behave entrepreneurially plays an important role in the firms generation of stakeholder value.

scholarly journals The Environmental Intention of Owner-Managers: The Role of Entrepreneurial Orientation in Tunisian Industry

2020 ◽  
Vol 28 (01) ◽  
pp. 1-29
Author(s):  
Azzedine Tounés ◽  
Erno T. Tornikoski ◽  
Fafani Gribaâ
Keyword(s):  
Air Pollution ◽  
Developing Countries ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Three Dimensions ◽  
Clothing Industry ◽  
Development Programs ◽  
Improvement Program ◽  
Multidimensional Concept

Environmental intention is a key predictor of environmental behavior but there is little theoretical and empirical evidence on environmental intention, especially in developing countries. To address this gap, we study the environmental intention of industrial owner-managers in Tunisia. Based on Tunisia’s participation in sustainable development programs of the United Nations, it seems to be representative of developing countries. We study the environmental intention of owner-managers through a multidimensional concept rarely mobilized in the environmental field, namely, entrepreneurial orientation. We test our hypotheses in the textile-clothing industry, which is the source of significant amounts of water and air pollution and is among the priority industries designated by the Tunisian state as part of an environmental improvement program in 2014. Based on a survey of 226 owner-managers, the results show that the three dimensions of entrepreneurial orientation, namely, innovativeness, proactiveness, and risk-taking, are robust to predict the environmental intention of Tunisian owner-managers.

Strategic orientations and firm innovativeness: a necessary condition analysis

2019 ◽  
Vol 14 (3) ◽  
pp. 427-442 ◽  
Author(s):  
Nguyen Dinh Tho
Keyword(s):  
Relationship Quality ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Necessary Condition ◽  
Learning Orientation ◽  
Business Relationship ◽  
Content Type ◽  
Strategic Orientations ◽  
Marketing Orientation ◽  
Firm Innovativeness

Purpose The purpose of this paper is to decipher the levels of three strategic orientations – learning orientation, entrepreneurial orientation (proactiveness and risk taking) and marketing orientation (responsiveness to customers, responsiveness to competitors, responsiveness to the macro-environment and business relationship quality) – that are necessary for firm innovativeness. Design/methodology/approach Data were collected from a sample of 316 firms in Ho Chi Minh City, Vietnam. Multiple regression analysis (MRA) was employed to examine the net effects of seven factors (learning orientation, proactiveness, risk taking, responsiveness to customers, responsiveness to competitors, responsiveness to changes in the macro-environment and business relationship quality) on firm innovativeness. Necessary condition analysis (NCA) was then employed to discover the level of these factors as necessary conditions for firm innovativeness. Findings The results produced by MRA show that learning orientation, proactiveness, responsiveness to customers and responsiveness to competitors have positive effects on firm innovativeness. The results from the NCA reveal that six out of seven conditions exhibit varying necessary levels for firm innovativeness. Practical implications The findings are relevant to senior managers and suggest that the levels of strategic orientations necessary for firm innovativeness vary. Firms therefore should pay attention not only to the net effects (beta weights) but also to their necessary levels. Based on their resources and capabilities, firms should take into account the necessary level of each strategic orientation in order to achieve their innovativeness goal. Originality/value This study is among the first to decipher the levels of three strategic orientations (learning orientation, entrepreneurial orientation and marketing orientation) that are necessary for firm innovativeness.

ENTREPRENEURIAL ORIENTATION, PERFORMANCE AND THE MODERATING ROLE OF INSTITUTIONAL CAPITAL: A CASE STUDY OF FEMALE ENTREPRENEURS IN THAILAND

2019 ◽  
Vol 24 (02) ◽  
pp. 1950008
Author(s):  
CHONNATCHA KUNGWANSUPAPHAN ◽  
JIBON KUMAR SHARMA LEIHAOTHABAM
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Female Entrepreneurs ◽  
Policy Makers ◽  
Institutional Capital ◽  
The Relationship ◽  
Moderating Role

This study examines the relationship between entrepreneurial orientation of female entrepreneurs and business performance, and analyzes the moderating role of institutional capital on the entrepreneurial orientation-performance link. The results of the study highlight the important role of entrepreneurial orientation, including proactiveness, innovativeness and risk-taking, in directing business performance of female entrepreneurs and the complex interplay among entrepreneurial orientation variables. It also indicates that accessibility to institutional capital, through regulative, cognitive and normative dimensions, encourages female entrepreneurs to be more entrepreneurially oriented, thus leading to better business performance. In addition, this research proposes an integrated framework to guide policy makers on how institutional capital can play a crucial role in helping female entrepreneurs, stressing the importance of becoming entrepreneurial oriented and thus, achieving superior business performance.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

scholarly journals Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey

2019 ◽  
Vol 11 (13) ◽  
pp. 3643 ◽  
Author(s):  
Elif Akben-Selcuk
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ownership Concentration ◽  
Firm Financial Performance ◽  
Variable Approach ◽  
Corporate Social ◽  
The Impact ◽  
Moderating Role

The objective of this study is to investigate the impact of corporate social responsibility (CSR) engagement on firm financial performance in a developing country, Turkey, and to analyze the moderating role of ownership concentration in the CSR–financial performance relationship. The sample consists of non-financial public firms listed on the Borsa Istanbul (BIST)-100 index and covers the period between 2014 and 2018. Empirical results using an instrumental variable approach show that corporate social responsibility has a positive relationship with financial performance. Furthermore, findings indicate that this relationship is negatively moderated by ownership concentration even when endogeneity is controlled for.

How entrepreneurial orientation drives farmers' innovation differential in Ugandan coffee multi-stakeholder platforms

2020 ◽  
Vol 10 (5) ◽  
pp. 629-650
Author(s):  
Carlos Luis Barzola Iza ◽  
Domenico Dentoni
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Partial Least Square ◽  
Least Square ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
African Context ◽  
Key Dimensions ◽  
Multi Stakeholder

PurposeThis study explores the role of the key dimensions of farmers' entrepreneurial orientation – namely proactiveness, risk-taking, innovativeness and intentions – as drivers of product, process and market innovation in the context of one coffee MSP in Uganda.Design/methodology/approachEmpirical data from 152 coffee farmers were analyzed via confirmatory factor analysis and partial least square multi-variate statistics.FindingsFindings highlight, first, that farmers' proactiveness significantly drives their product innovation and, to a lesser extent, process innovation. This effect holds when considering key control variables, such as access to key resources and associated actors. Second, more surprisingly, farmers' innovativeness hampers market innovation. Third, entrepreneurial intentions per se did not play a significant role in farmers' innovation. Fourth, the adapted measurement of risk-taking from the Western literature did not suit well the Ugandan coffee farming context.Research limitations/implicationsThese results lead to methodological implications for the measurement of farmers' risk-taking, innovative and proactive attitudes, as well as market innovation in rural Africa. Furthermore, they expand the role farmers' entrepreneurial orientation on product, process and market innovation in a rural African context.Originality/valueMulti-stakeholder platforms (MSPs) are often claimed to play an important role in stimulating farmers' innovation and enhancing rural development. Nevertheless, little is known yet on if why some farmers participating in MSPs may innovate more than others. This paper addresses this gap by shedding light on the role of farmers' entrepreneurial orientation.

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