How environmental turbulence influences firms’ entrepreneurial orientation: the moderating role of network relationships and organizational inertia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming-Chao Wang ◽  
Pei-Chen Chen ◽  
Shih-Chieh Fang
Keyword(s):  
Entrepreneurial Orientation ◽  
High Technology ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Content Type ◽  
Technology Firms ◽  
Organizational Inertia ◽  
High Technology Firms ◽  
The Relationship

Purpose Environmental turbulence represents a double-edged sword, simultaneously fueling and hindering a firm’s entrepreneurial orientation (EO). Drawing on the theories of EO and network relationships, this study aims to develop and test a conceptual model that provides a nuanced account of the relationship between environmental turbulence and firm EO. Design/methodology/approach Data for this study were collected using a survey of high-technology firms in Hsinchu Science Park (HSP) in Taiwan. Questionnaires were mailed to 297 high-technology firms in the semiconductor, photoelectric and communication industries within HSP. Completed questionnaires were received from 94 firms, which included responses from 94 research and development managers and 462 employees. Findings The results reveal that the degree of environmental turbulence exhibits an inverted U-shaped relationship with a firm’s EO. Moreover, this relationship is positively moderated by network relationships between firms, but negatively moderated by organizational inertia. Originality/value The empirical and conceptual findings have important implications for understanding EO, because the findings explain causal relationships that transform a firm’s interactive and inner control capabilities into firm-level results.

scholarly journals The effects of entrepreneurial orientation and commitment to objectives on performance

2011 ◽  
Vol 14 (2) ◽  
pp. 9-17 ◽  
Author(s):  
Mark Simon ◽  
Chanel Stachel ◽  
Jeffrey G. Covin
Keyword(s):  
Survey Data ◽  
Entrepreneurial Orientation ◽  
High Technology ◽  
Sales Growth ◽  
Technology Firms ◽  
High Technology Firms ◽  
And Performance ◽  
The Relationship

The relationship between entrepreneurial orientation (EO) and performance is often moderated by different factors. Specifically, scholars have called for research examining whether commitment to long-term objectives improves EOʼs effectiveness, believing that commitment may help firms overcome obstacles associated with EO. In response, we collected survey data from executives in 126 small, high-technology firms, and found that EO and commitment to objectives enhanced sales growth. In addition, the study determined that commitment to objectives was associated with greater increased sales growth of companies high in EO, as compared to those low in EO.

Direct and indirect effect of entrepreneurial orientation, family involvement and gender on family business performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Family Businesses ◽  
Future Research ◽  
Content Type ◽  
The Family ◽  
The Relationship

PurposeThis study aims to determine the direct effect of entrepreneurial orientation on family business performance. This study also discusses the role of family involvement as a mediating variable and the role of gender as a moderating variable in the relationship between entrepreneurial orientation and family business performance.Design/methodology/approachA total of 328 hotels in Yogyakarta, Indonesia, were selected as samples by the convenience sampling method. Primary data is collected through structured questionnaires that are delivered by themselves to key people in the hotel such as owners, directors and key staff (HRD, financial, relationship). Hypotheses are tested by structural equation modeling procedures using AMOS 22.0. Sobel test is used to determine the indirect effect of the mediation variable.FindingsThe results showed that entrepreneurial orientation had no significant effect on family business performance. Family involvement acts as a full mediation in the relationship between entrepreneurial orientation and family business performance. Gender acts as a moderating variable that can strengthen the relationship between entrepreneurial orientation and family business performance. The results showed support for previous research.Research limitations/implicationsThe results of the study cannot conclude the national family business because it adopts convenience sampling and the sampling area is limited in Yogyakarta. Future research can use a larger sample. This study only researches hotels managed by family businesses, so it is not feasible to conclude for family businesses in general. Future research may choose to use several types of family businesses so that more varied results can be obtained. Future research could also compare hotels managed by family businesses with non-family businesses. The results also found that in addition to gender roles, respondent heterogeneity was an important component in the study of social identity. Therefore, research examining the influence of different cultures on the relationship between entrepreneurial orientation and family business performance should be an extraordinary topic for future study. Other results from this study also indicate that there is a role for religion in improving hotel performance. Future research is needed to further explore Islamic business modeling for family businesses.Practical implicationsThis finding has significant implications that can help family businesses in developing strategies that are suitable for business management. Entrepreneurial orientation occupies a strategic position in developing sustainable competitive advantage in the family business of the tourism sector especially the hotel business in Yogyakarta for the better. Besides, the results of the study also showed that entrepreneurial orientation had no significant effect on performance. This relationship becomes significant when combined with active family involvement. This finding also shows that entrepreneurial orientation has the potential to have a more beneficial effect because of the active involvement of the family in helping with business management, alleviating business-related problems, and having a significant influence when the family also acts as management.Social implicationsResearch findings indicate the role of gender in strengthening the relationship between entrepreneurial orientation and family business performance. This provides a good position for women in the social environment to show achievement. To place women on the side of gender equality and justice in the family business in Indonesia. By opening wider access for Indonesian women in the realm of business management, expanding women's participation in a family business, increasing the role of control for women, and increasing women's knowledge and skills to increase the benefits in managing family businesses so that they have sustainable resilience in the face of global competition.Originality/valueThe results of this study provide a new model in providing an overview of the direct and indirect roles (mediating and moderating) in the assessment of family business performance. This study uses three variables which are important in performance appraisal, namely entrepreneurial orientation (independent variable), family involvement (mediating variable) and gender (moderating variable). Where research that combines these four variables, directly and indirectly, has never been done before.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

scholarly journals Dynamics in rural entrepreneurship – the role of knowledge acquisition, entrepreneurial orientation, and emotional intelligence in network reliance and performance relationship

2019 ◽  
Vol 13 (2) ◽  
pp. 247-262 ◽  
Author(s):  
Thomas Bilaliib Udimal ◽  
Zhuang Jincai ◽  
Isaac Akolgo Gumah
Keyword(s):  
Emotional Intelligence ◽  
Knowledge Acquisition ◽  
Entrepreneurial Orientation ◽  
Extension Education ◽  
Business Network ◽  
Content Type ◽  
The Social ◽  
And Performance ◽  
The Relationship

Purpose Social network and being a part of an established business network helps in the acquisition of resources. The purpose of this study specifically looked at the mechanisms through which network reliance (NR) influences the entrepreneurial performance (PERF) among rural farmer entrepreneurs in China. Design/methodology/approach The paper looks at the economic sociology perspective of social networks. A total of 450 rural farmer entrepreneurs were interviewed for the study. The study introduces emotional intelligence (EI) and entrepreneurial orientation (EO) into the relationship between NR, knowledge acquisition (KA) and entrepreneurial PERF. Findings The result shows that KA partially and positively mediates the relationship between NR and entrepreneurial PERF. EO is shown to moderate the relationship between KA and entrepreneurial PERF apart from its direct effect on entrepreneurial PERF. The EI of rural farmer entrepreneurs has a direct and significant effect on KA but does not moderate the relationship between NR and KA. Originality/value This study provides a new direction for extension education to rural farmer entrepreneurs. Knowledge building capacity programmes for rural farmer entrepreneurs should be an area of priority for extension education. Building the social capital and entrepreneurial capacities of rural farmer should be a new area of focus for policymakers. These measures will go a long to improving the capabilities of rural farmer entrepreneurs, which will, in turn, impact positively on their PERF.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zaynab Dadzie ◽  
Ahmed Agyapong ◽  
Abdulai Suglo
Keyword(s):  
Firm Performance ◽  
Empirical Study ◽  
Entrepreneurial Orientation ◽  
Developing Nation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation. Design/methodology/approach The study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study. Findings Largely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance. Originality/value This study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

Electronic commerce adoption, entrepreneurial orientation and small- and medium-sized enterprise (SME) performance

2014 ◽  
Vol 21 (1) ◽  
pp. 100-116 ◽  
Author(s):  
Michael Abebe
Keyword(s):  
Growth Rate ◽  
Entrepreneurial Orientation ◽  
Positive Influence ◽  
Sales Growth ◽  
Content Type ◽  
And Performance ◽  
The Relationship ◽  
Significant Positive Influence ◽  
Structured Questionnaire

Purpose – This study aims to contribute to the literature by addressing two research questions: is there a relationship between e-commerce adoption and performance of SMEs? And, more importantly, does the degree of entrepreneurial orientation moderate the relationship between e-commerce adoption and SME performance? Design/methodology/approach – Data were collected from a sample of 55 manufacturing and service SMEs located in the state of Texas, USA, between 2008 and 2009 using a structured questionnaire. Customized questionnaires were mailed out to the owner-managers of 55 SMEs. A moderated regression analysis was conducted to test the two hypotheses. Findings – The results suggest that e-commerce adoption has a significant, positive influence on SMEs' average sales growth rate and that adopters of e-commerce technology have significantly higher average sales growth rate than non-adopters. The results also indicate that e-commerce adoption positively affects SMEs' annual sales growth rate even more when the sample firms have higher level of entrepreneurial orientation. Overall, the results of this analysis indicate the importance of e-commerce adoption as well as SMEs' entrepreneurial orientation on the performance of SMEs. Research limitations/implications – The findings of this study can be useful for SMEs in general as a means of understanding how e-commerce adoption positively affects the firm's performance. Such a relationship suggests that e-commerce adoption is an important factor that can enhance firm's internal processes and ultimately performance. Therefore, e-commerce adopters should continue to utilize this technology while non-adopters should consider harnessing the potential of this technology to further streamline their operations and effectiveness. Originality/value – This study contributes to the literature by providing empirical evidence on the role of e-commerce adoption and entrepreneurial orientation in small firm performance.

scholarly journals Knowledge sharing and affective commitment: the mediating role of psychological ownership

2015 ◽  
Vol 19 (6) ◽  
pp. 1146-1166 ◽  
Author(s):  
Jian Li ◽  
Ling Yuan ◽  
Lutao Ning ◽  
Jason Li-Ying
Keyword(s):  
Knowledge Sharing ◽  
Structural Equation ◽  
Affective Commitment ◽  
Negative Impact ◽  
Common Knowledge ◽  
Psychological Ownership ◽  
Content Type ◽  
High Technology Firms ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the meditating role of psychological ownership which includes both organisation-based psychological ownership (OPO) and knowledge-based psychological ownership (KPO) on the relationship between affective commitment and knowledge sharing. Design/methodology/approach – This paper is an empirical study based on structural equation modelling, with a sample of 293 employees from 31 high-technology firms in China. Findings – The result indicated that affective commitment had a significant positive effect on OPO but no effect on KPO; OPO was positively related to both common and key knowledge sharing, while KPO exerted a negative impact on both; common knowledge sharing was positively related to key knowledge sharing; the relationship between affective commitment and key knowledge sharing was multi-mediated by OPO and common knowledge sharing. Originality/value – OPO and KPO play an essential role in transferring the effect of employees’ affective commitment to common knowledge sharing and key knowledge sharing, which unravels the blackbox of how effective commitment affects knowledge sharing.

The relationship between growth and volatility in small firms

2014 ◽  
Vol 52 (8) ◽  
pp. 1516-1532 ◽  
Author(s):  
Ana Maria Moreno ◽  
Jose A. Zarrias ◽  
Jose L. Barbero
Keyword(s):  
Small Firm ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Small Firms ◽  
Quantitative Information ◽  
Similar Nature ◽  
Firm Level ◽  
Content Type ◽  
The Relationship ◽  
Environmental Hostility

Purpose – The purpose of this paper is to investigate the effect of predictors of growth (entrepreneurial orientation (EO) and environmental hostility) and growth itself on small-firm volatility. The objective is to find out: first, whether growth and volatility possess a similar nature; second, what are the predictors of small-firm volatility. Design/methodology/approach – Questionnaire data were collected from CEOs of 433 Spanish small firms (<500 employees) who provided qualitative as well as quantitative information. Findings – The authors find that some of the predictors on growth can also be used to predict firm volatility. Specifically, the authors find that firm volatility is influenced by EO and environmental hostility. Growth also influences firm volatility. The authors also find a strong interaction effect of growth and firm size on firm volatility. The authors conclude that although growth and firm volatility are related concepts, they are different. Originality/value – Growth has concentrated small-firm research during the last 20 years. However, during the last few years, the environment has become very dynamic and small firms need research helping them to deal with such dynamism. There are few studies on firm-level volatility. The research helps understand more the determinants of small-firm volatility.

Linking entrepreneurial orientation to SMEs’ performance

2019 ◽  
Vol 57 (12) ◽  
pp. 3364-3386 ◽  
Author(s):  
Francisco Javier Alvarez-Torres ◽  
Gabriela Citlalli Lopez-Torres ◽  
Giovanni Schiuma
Keyword(s):  
Entrepreneurial Orientation ◽  
Academic Staff ◽  
Structural Equations ◽  
Content Type ◽  
Critical Dimensions ◽  
Knowledge Based ◽  
Working Definition ◽  
Entrepreneurial Culture ◽  
The Relationship

Purpose The purpose of this paper is to measure the relationship between entrepreneurial orientation (EO) and performance of small- and medium-sized enterprises (SMEs). The aim is to contribute to the extant literature about the role of EO for SMEs development, and more specifically to identify implications that can inform knowledge-based initiatives of entrepreneurship universities focussing on the development and diffusion of the entrepreneurial culture and capacity. Design/methodology/approach This research paper adopts a quantitative approach to investigate a conceptual framework linking EO to SME’s performance. The central postulated hypothesis is that EO positively affects performance of SMEs. This hypothesis has been tested by using a system of partial least squares of structural equations modelling, adopting the SmartPLS® 3.0 software (Ringle et al., 2015). The empirical context analysed 170 SMEs operating in the Bajio Region (México) in the leather–footwear sector. Findings The results provide evidence that Mexican companies that manifest EO have a positive effect on their firm performance. Similarly, findings emphasise that both risk taking and innovativeness are currently the central axes of EO for the analysed companies. Accordingly, entrepreneurial universities should be engaged in the development of EO of students, academic staff and companies by focussing on knowledge-based actions that can foster the improvement of some specific features of the EO. Practical implications The results provide insights about the relationships between EO and the performance of SMEs indicating that potentials initiatives of entrepreneurship universities aiming to support the development capacity of SMEs as well as of students and academic staff should be focussed on the critical dimensions characterising EO. Originality/value This paper provides insights into the role of EO for SMEs performance. It provides three main contributions. First, derived from literature research, it proposes a working definition of EO. Second, the empirical research findings support an understanding of the relationship between EO and Mexican SMEs performance and propose a multiple and reflective dimension of EO’s model. Moreover, finally, this research provides some implications for entrepreneurship universities aiming to create and diffuse an entrepreneurial culture and capabilities by fostering the development of the EO.

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