Validating multidimensional entrepreneurial orientation in emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaustav Saha ◽  
Rohit Kumar ◽  
Swarup Kumar Dutta ◽  
Preeti Tiwari
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Entrepreneurial Orientation ◽  
Positive Impact ◽  
New Ventures ◽  
Manufacturing Firms ◽  
New Venture ◽  
Primary Data ◽  
Data Set ◽  
Content Type

Purpose This study aims to examine the Lumpkin and Dess (1996) conceptualization of entrepreneurial orientation (EO) in an emerging economy, focusing on India. It ascertains the dimensions of EO that are valuable in securing superior firm performance in emerging economies, which might differ from a developed market setting. It further examines the difference in the significance of dimensions between the manufacturing and services industry. Design/methodology/approach A novel primary data set consisting of responses from 228 new ventures incorporated in India was created through an online questionnaire survey following the tailored design method principles. A disaggregated approach was adopted and the data were analyzed using multiple regression in SPSS 21. Findings Among the dimensions of EO, competitive aggressiveness positively affected new venture performance, whereas proactiveness did not show any effect. Autonomy also exhibited a positive impact, except for new venture growth in manufacturing firms. Innovativeness exhibited partial support, only for the effectiveness of service firms. Risking-taking exhibited a negative effect on performance, particularly for manufacturing firms. Practical implications The findings guide entrepreneurs and managers operating their new ventures in emerging economies by suggesting the dimensions that are most likely to benefit firm performance and those that might be detrimental. Originality/value This study empirically validates the multidimensional conceptualization of EO in India and extends previous studies, which have typically focused on an aggregated EO scale. This study’s findings attest that the manifestation of EO in emerging economies might be different compared to mature economies. The contrast between the manufacturing and service sectors is also shown.

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

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.

scholarly journals Ownership feature and firm performance via corporate innovation performance

2018 ◽  
Vol 25 (2) ◽  
pp. 239-250 ◽  
Author(s):  
Dung Nguyen ◽  
Hoai Nguyen ◽  
Kien S. Nguyen
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Likelihood Method ◽  
Sales Growth ◽  
Reverse Causality ◽  
Data Set ◽  
Content Type ◽  
Cmp Model

Purpose The purpose of this paper is to investigate the simultaneous relationship among ownership concentration, innovation and firm performance of the small- and medium-sized enterprises (SMEs) in Vietnam during the 2011–2015. By employing a Conditional Mixed Process (CMP) model, the findings show that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. Design/methodology/approach In this study, the authors propose the adaption of CMP model (Roodman, 2011). The nature of the first stage dependent variable – Innovation – is a binary one while the dependent variable Performance is continuous. Therefore, a model that can adapt the binary nature of the dependent variable and perform the estimation of a system of equations such as CMP model is preferred. The CMP framework is substantially that of seemingly unrelated regression, but with application in a larger scope. This approach is based on a “simulated maximum likelihood method” suggested by Geweke–Hajivassiliou–Keane algorithm. Findings By applying CMP method, this study examines the simultaneous relationship among ownership concentration, innovation and firm performance of the SMEs in Vietnam from 2011 to 2015. The findings indicate that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. Research limitations/implications In spite of the efforts to explore the simultaneous relationship among ownership concentration, innovation and firm performance of the SMEs in Vietnam, the study still has some limitations which are promising further research directions. First, the SME surveys by Central Institute for Economic Management do not have much information about other types of ownership including state-owned and foreign ownership. Therefore, possible further studies with richer data sets may explore the impacts of different types of ownership on firm innovation and performance. Second, other types of innovation such as organizational innovation, marketing innovation can also be investigated in further studies in a richer data set for the case of Vietnam SMEs. Originality/value The findings show that: there is no impact of ownership concentration on innovation, but it has a positive impact on sales growth; innovation positively affects firm performance; and there exists a positively reverse causality from sales growth to innovation. The policy implications insist on facilitating SMEs with easier access to capital via loans with preferred interest or trust loans without collateral, training programs for the labor force and SME leaders, and reduction of unnecessary administrative procedure.

scholarly journals Motivation of female entrepreneurs: a cross-national study

2019 ◽  
Vol 26 (5) ◽  
pp. 684-705 ◽  
Author(s):  
Marina Solesvik ◽  
Tatiana Iakovleva ◽  
Anna Trifilova
Keyword(s):  
Emerging Economies ◽  
New Ventures ◽  
Primary Data ◽  
National Study ◽  
Research Approach ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Business Outcomes ◽  
The Social ◽  
Different Levels

Purpose This paper focuses on the motivation of females to start businesses in developed and emerging economies. Although the issues related to the motivation of entrepreneurs have been widely studied, there are a few studies focusing on the differences in women’s entrepreneurial motivation in countries with different levels of market economy development. Furthermore, existing studies on female founders mainly adapt the concepts that have often been developed in male-dominated paradigm. The purpose of this paper is to explore in depth motivations of female entrepreneurs in different contexts and discover the dissimilarities in women’s entrepreneurial motivations in countries with different levels of economic development. Design/methodology/approach The qualitative research approach is applied in this study to explore the social-driven and profit-driven motives of female entrepreneurs. The authors have employed purposeful sampling to select cases. The authors investigated the motivations of 45 female entrepreneurs in Norway (12), Russia (21) and Ukraine (12). Semi-structured interviews were used to collect primary data. The authors have also triangulated the data collected from interviews with the data available on the internet, company reports and newspaper publications. Findings The findings indicate that women often pursuit business opportunities to satisfy social needs, rather than focusing on traditional business outcomes such as growth or profit. However, different contexts – the emerging economies context of Russia and Ukraine and the developed one of Norway – seem to influence the motivation to establish new ventures differently. The study found a stronger desire to contribute to a society’s needs among female founders in Norway compared to their counterparts in Russia and Ukraine. This indicates that cultural and social context in developed countries, such as in Norway, probably provides more possibilities for female entrepreneurs for self-realisation elsewhere leaving more room for focusing on societal issues in business in comparison with emerging countries contexts. Originality/value A novel conceptual contribution is the exploration of links between the social-driven and profit-driven motives of female entrepreneurs in emerging and developed economises. The study also adds to debates relating to context embeddedness of smaller firms.

Incubator networks and new venture performance: the roles of entrepreneurial orientation and environmental dynamism

2020 ◽  
Vol 27 (5) ◽  
pp. 727-747
Author(s):  
Wenqing Wu ◽  
Hongxin Wang ◽  
Fu-Sheng Tsai
Keyword(s):  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Mediating Effect ◽  
New Venture ◽  
Environmental Dynamism ◽  
Content Type ◽  
Venture Performance ◽  
The Relationship ◽  
Moderating Role ◽  
New Venture Performance

PurposeThis study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the influence of BIs' internal and external networks on new venture performance through the entrepreneurial orientation (EO) and environmental dynamism.Design/methodology/approachThe study uses multiple regression analysis on a sample of 205 new ventures in Chinese BIs.FindingsBoth the internal and external networks of BIs positively affect new venture performance and EO has a mediating effect in this relationship. Environmental dynamism plays a positive moderating role in the relationship between BIs' internal and external networks and EO.Practical implicationsBased on the results of this study, incubator managers should focus on creating internal and external networks and leveraging network embeddedness to influence new venture performance. Further, new ventures should focus on strengthening their EO and fully consider the impact of environmental dynamism on EO implementation.Originality/valueTo address the research gaps in understanding how BI networks can support new venture growth, this study integrates BIs' internal and external networks and explores their impacts on new venture performance using co-production theory and the resource-based view. It thus opens the black box on how BI's networks affect performance from the EO perspective. Moreover, this study fully clarifies chain relationships by identifying and analysing the moderating role of environmental dynamism.

Entrepreneurial orientation and firm performance in different environmental settings

2016 ◽  
Vol 23 (3) ◽  
pp. 703-727 ◽  
Author(s):  
Galina Shirokova ◽  
Karina Bogatyreva ◽  
Tatiana Beliaeva ◽  
Sheila Puffer
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Environmental Variable ◽  
Superior Performance ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Market Growth ◽  
Environmental Hostility ◽  
Different Levels

Purpose – The purpose of this paper is to explore the relationship between entrepreneurial orientation (EO) and firm performance across different levels of environmental hostility and market growth. The contingency approach of two-way interactions of EO with each environmental variable is contrasted with the configurational approach of three-way interactions of EO simultaneously with different levels of both environmental variables. Design/methodology/approach – Hierarchical regression analysis is applied for the pooled data set of 163 Finnish and Russian small- and medium-sized enterprises, and supplemented with post hoc analysis of the differences in regression slopes across environmental configurations. Findings – Results show that EO is directly and positively associated with firm performance. However, the strength and direction of this relationship varies by configurations of the external environment variables. Firms achieve superior performance when adopting EO in environments with high levels of both hostility and market growth. In contrast, in favorable environments with low hostility and high market growth, EO adoption leads to lower firm performance. Research limitations/implications – The study contributes to the EO literature by demonstrating different effects of EO on firm performance across various environmental configurations. It uses cross-sectional data from two countries. Replication studies using different samples may further corroborate the results. Practical implications – In order to take advantage of opportunities and achieve better performance, managers of firms should analyze multiple elements of the environment concurrently and align EO to those conditions. Originality/value – The configurations of environmental hostility and market growth, representing both favorable and unfavorable elements of business context, have not been previously investigated together in one model of the EO-performance relationship.

scholarly journals Analysis of the Interaction between Dividend Policy and Firm Performance in Manufacturing Sector

2019 ◽  
Vol 10 (4) ◽  
pp. 14-21
Author(s):  
Shankar Kumar Singh Jha ◽  
Usama Aziz
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Positive Impact ◽  
Primary Source ◽  
Theoretical Implication ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Top Management ◽  
Dividend Payout ◽  
The Impact

The purpose of this study is to investigate internal determinant factors of dividend policy in manufacturing firms. The study considers the impact of dividend payout ratio, signalling, earnings per share and risk on firm performance. This research also tries to create a link between dividend policy and firm performance. In the same way, the research is also aimed to create a link between these factors. Such as, the current link between the dividend policy and firm performance. It will elaborate this through current and previous studies as a whole. This study used primary data from the listed manufacturing firms in order to check the effects of dividend policy on firm performance. Data was collected from the primary source. The survey questionnaire was used to collect data from top management in order to highlight the impact of dividend policy on firm performance. Multi-regression analyses were undertaken to identify attributes that influence dividend policy. The results of the study demonstrate that all the variables are significant thus they have a positive impact on firm performance. The study established the findings that dividend payout, earning per share, signalling and risk positively and significantly influence the firm’s value. Moreover, companies should consider dividend policy in order to make the financial decision more efficiently. This study tells us that decisions about dividend policy should be made by considering other variables. The study has both practical and theoretical implication for top management in order to consider the dividend policy and its impact on firm performance.

Corporate social responsibility and financial performance nexus

2018 ◽  
Vol 9 (3) ◽  
pp. 301-328 ◽  
Author(s):  
Joseph Dery Nyeadi ◽  
Muazu Ibrahim ◽  
Yakubu Awudu Sare
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Positive Impact ◽  
Public Investment ◽  
Data Set ◽  
Content Type ◽  
The Public ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Impact

Purpose The paper aims to investigate empirically the impact of corporate social responsibility (CSR) on financial performance in South African listed firms. Design/methodology/approach The paper uses panel corrected standard errors to estimate the effect of CSR on firm financial performance and thus addresses contemporaneous cross-correlations across the panel cross sections. The study uses a broad base measure of CSR created by the Public Investment Corporation data set and the combination of accounting and economic means of measuring firm financial performance. Findings CSR is found to have a strong positive impact on firm financial performance in South Africa. When CSR is decomposed further into its major components, governance performance positively impacts a firm’s financial performance with no evidence of any relationship between social components and firm performance and between environmental components and firm performance. The positive impact of CSR on firm performance is greater in big firms. At the industry level, CSR is noticed to impact positively on financial performance in the extractive industry via good governance and responsible environmental behaviors. It however has no impact on firm performance in the financial sector. Research limitations/implications The results should be interpreted with caution and some limitations. Due to the limiting nature of the Public Investment Corporation data set (the survey was carried out on selected firms on the Johannesburg Stock Exchange for three years spanning from 2011 to 2013). This resulted in a sample of 56 firms. It is therefore very problematic to generalize the findings to a larger population over a long period of time. This is more limiting especially on individual sector studies where the sample has further shrunk to a smaller sample. As a result of the smaller sample size, the authors were unable to explore some other sectors which could have given more revealing findings. The authors recommend that future research should explore other data sets or use primary data approach that can allow for more sample size and elongated time period for a more holistic view and for easy generalization of the findings. The authors also identify an important lacuna necessitating further research effort. It would be interesting to empirically examine the threshold point of firms’ size beyond which CSR damages firms’ performance. Knowledge of this will guide managers of firms in their strategic CSR decision. Practical implications This study does not only serve as a reference work for subsequent investigations into the impact of CSR on firm performance in sub-Saharan Africa but also serves as a guide to policymakers on the financial impact of CSR adoption. Originality/value This study is one of the pioneering works that comprehensively examines the effect of CSR on financial performance amongst South African firms via size and sector and also controls for contemporaneous cross-correlation effects from the firms in the panel set.

The impact of training on firm outcomes: longitudinal evidence from Canada

2019 ◽  
Vol 41 (2) ◽  
pp. 117-131
Author(s):  
Stéphane Renaud ◽  
Lucie Morin
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Voluntary Turnover ◽  
Empirical Literature ◽  
Reverse Causality ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Firm Outcomes ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of three training indicators, namely offer, participation and cost, on three firm outcomes, namely voluntary turnover, firm performance and profit. Design/methodology/approach The empirical analysis is carried out using firm-level data sourced from a Canadian national data set. In total, data from 5,237 for-profits firms with ten employees or more were analyzed longitudinally over eight years. Results were generated by XTREG fixed effect longitudinal analyses between the three variables of training, voluntary turnover, firm performance and profit. Findings Training offer, operationalized as the number of different formal training programs offered annually by an employer, significantly decreases voluntary turnover while it significantly increases performance and profit. Training participation, operationalized as the percentage of employees receiving training per year, has a significant positive impact on voluntary turnover. Training cost, operationalized as the annual cost of training per employee, has no impact on the three firm outcomes. Practical implications Among the various human resource practices a firm can use to strengthen its human capital, training can have a significant impact of its own. Investing in a diversified training offer brings value to a firm by decreasing employee voluntary turnover while increasing firm performance and profit. Originality/value This research contributes to the strategic impact of organizational training, demonstrating the impact of training on key organizational outcomes over time. Further, this paper contributes to the empirical literature by making a distinction between voluntary and involuntary turnover. Last, even though this study does not entirely addresses the problem of possible reverse causality, using longitudinal objective data, this study addresses several limits of past research at the macro-level of analysis.

How do new ventures attract and retain talented employees? The case of Shaadisaga

2017 ◽  
Vol 25 (2) ◽  
pp. 1-3 ◽  
Author(s):  
Safal Batra
Keyword(s):  
Emerging Economies ◽  
Small Businesses ◽  
Design Methodology ◽  
Management Practices ◽  
New Ventures ◽  
New Venture ◽  
Content Type ◽  
Depth Interviews ◽  
Practical Implications

Purpose This paper aims to make an attempt to highlight how small businesses and new ventures, which are invariably resource-constrained and cannot match the salaries of their larger counterparts, attract and retain talented employees. The study uses the setting of a new Indian venture called Shaadisaga to demonstrate successful employee development practices for new ventures. Design/methodology/approach Findings are based on in-depth interviews with the team of Shaadisaga. Findings Findings reveal that new ventures – which operate with limited resources and market presence – need to leverage their human resources to their highest potential. The only way to hire and retain good talent is to keep the employees motivated, offer challenging assignments which enhance their learning and skills and make them partners of the growth story of the company. Practical implications Managers and entrepreneurs who are building new ventures need to pay special attention to the development of their employees. Long-term promising careers, challenging assignments, diverse roles and a share in the growth of the company can help organizations retain good talent and get the best out of them. Originality/value Extant research offers insights into how to manage and motivate people in large organizations. However, little is still known about the management practices of new ventures, especially of those operating in the emerging economies. This study tries to highlight the human resource practices of a new venture that has been successfully building a team of motivated employees delivering to the expectations of the organization.

Entrepreneurial orientation and performance – are sexes equal?

2016 ◽  
Vol 22 (3) ◽  
pp. 346-374 ◽  
Author(s):  
Katharina Fellnhofer ◽  
Kaisu Puumalainen ◽  
Helena Sjögrén
Keyword(s):  
Entrepreneurial Orientation ◽  
Work Performance ◽  
Positive Impact ◽  
Entrepreneurship Policy ◽  
Or Education ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
And Performance ◽  
The Individual

Purpose – The purpose of this paper is to shed light on the different perceptions of entrepreneurial orientation (EO) of females compared to those of their male counterparts. EO and its links to performance are examined at the level of both the individual and the firm. Design/methodology/approach – Multiple linear regression analyses of a data set with 301 employees in different industries reveal significant differences between genders. Findings – EO has a positive impact on performance at both individual and firm levels of analysis. Females tend to perceive their individual EO as lower than males, but their self-evaluated work performance is higher than that of males. The firm’s EO is also perceived differently by men and by women, but the perceptions of firm’s performance are similar. Research limitations/implications – The results draw attention to the differences between individuals when they evaluate firm-level constructs like EO. While the sample is based on a small number of firms, the findings suggest that EO is neither pervasive throughout the firm nor gender-neutral. Practical implications – The different gender-related perceptions should be kept in mind when promoting entrepreneurially oriented behaviour within organizations. A strong focus on EO in entrepreneurship policy or education may discourage women. Originality/value – So far, multi-level organizational interrelationships have been substantially neglected with respect to the gender dimension.

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