Configurations and entrepreneurial orientation of young firms

2016 ◽  
Vol 54 (4) ◽  
pp. 1004-1019 ◽  
Author(s):  
Krishna Chandra Balodi
Keyword(s):  
Entrepreneurial Orientation ◽  
Qualitative Comparative Analysis ◽  
Model Specification ◽  
Firm Level ◽  
Core Element ◽  
Content Type ◽  
Young Firms ◽  
The Core ◽  
Leadership Strategy ◽  
Additional Domain

Purpose – Extant literature highlights the inadequacy of using just four domains – leadership, strategy, structure, and environment – for identifying firms’ configurations. The purpose of this paper is to answer the questions – what firm-level and external elements should be used to identify young firms’ configurations? Which among these is the core element? Design/methodology/approach – This paper relies on literatures on configuration approach and entrepreneurial orientation (EO) to build the assertions concerning the issue of theoretical specification used for generating young firms’ configurations, and its core element. Crisp-set qualitative comparative analysis (CS-QCA) of the data collected from 70 young firms supports the arguments. Various robustness analyses reaffirm these assertions. Findings – Literature review reveals that EO represents a firm’s decision-making proclivity concerning new entry and proactive risk-taking. CS-QCA supports the assertions that: inclusion of EO improves the configurational explanation of young firms’ performance; EO is the core element of young firms’ configurations; and market orientation or social capital cannot substitute EO in configurational studies of young firms’ performance. CS-QCA serves as a tool to support an alternative theoretical stance that questions the adequacy of extant domains used to identify configurations. Originality/value – This paper theorizes for inclusion of EO as an additional domain for identifying young firms’ configurations, and exploits novel capability of set theoretic methods of CS-QCA to explore the issues of model specification and conjunctural causation, and ascertain the core element of configurations.

The effect of effectuation and causation approach on entrepreneurial orientation in the presence of leader dominance and self-efficacy

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ma Jun ◽  
Fitri Rini Ariyesti ◽  
Sumran Ali ◽  
Peng Xiaobao
Keyword(s):  
Entrepreneurial Orientation ◽  
Self Efficacy ◽  
Scale Up ◽  
Chief Executive ◽  
Three Dimensions ◽  
Chinese Firms ◽  
Strategic Manoeuvring ◽  
Firm Level ◽  
Content Type ◽  
Leader Traits

Purpose Entrepreneurial orientation (EO) has witnessed a daunting rise in firm-level practices; to some extent, it has been augmented by the factors such as globalization and technological shift. The wide variety of literature has explained the importance of EO for firm performance. However, it has not yet been explored at a firm-level the approaches of causation and effectuation through the prism of leader traits such as leader dominance and self-efficacy as administrative ability and EO as strategic manoeuvring with strategic decisions obliged as a spin of firms. Design/methodology/approach The authors used the quantitative method to analyse the proposed relationships. For this reason, the authors targeted the Chinese firms to collect the data through the semi-structured survey from December 2020 to March 2021 and contributed to the literature by investigating 480 valid responses of leaders from Chinese firms. Findings The findings support the incorporated view of causation and effectuation on EO, which serve as vital strategic manoeuvring along with leader traits for firm stability and growth. Practical implications This study assists the decision-makers (including the top management team, Chief Financial Officer and Chief Executive Officer choose the particular approach (effectual or causal) to create the new venture/new product/new process or scale up the existing firm on another level for optimal benefits by considering their existing resources. Originality/value EO is a unidirectional process with three dimensions: innovativeness, proactiveness and risk-taking that could directly favour the firm by considering the well-known approaches (effectuation and causation) in crisis circumstances (like Covid-19). These approaches help the executives enhance their firm’s performance and maintain its sustainability and stability in crisis conditions by effectively using the available resources within its boundaries.

scholarly journals Testing complexity theory in service research

2019 ◽  
Vol 34 (2) ◽  
pp. 149-162
Author(s):  
Catherine Prentice
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Complexity Theory ◽  
Structural Equation ◽  
Qualitative Comparative Analysis ◽  
Service Research ◽  
Forecasting Accuracy ◽  
Content Type ◽  
The Core ◽  
Case Outcome

Purpose This study aims to draw on the complexity theory and uses a non-an asymmetrical method – fuzzy-set qualitative comparative analysis (fsQCA) to test the core tenets of complexity theory, namely, asymmetry, equifinality and causal complexity and valence reversals or conjunction with a focus on testing the relationships between service quality, customer satisfaction and loyalty. Case outcome forecasting accuracy rather than relationships are tested in asymmetric testing. Design/methodology/approach Both symmetrical (structural equation modelling or SEM) and non-symmetrical (fsQCA) methods were used to test the proposed relationships (symmetrical testing) and case outcome forecasting accuracy (asymmetric testing). The former was used as a comparison. The study setting was in Australian airports. The data were collected from departure passengers. Findings The results from SEM and fsQCA differ substantially. The former provides very simplistic findings of variable directional relationships; whereas the latter presents asymmetrical, equifinal and conjunctional relationships regarding service quality, customer satisfaction and behavioural intentions. These findings support the core tenets of the complexity theory. Research limitations/implications The study findings conform to the complexity theory that indicates relationships between variables can be nonlinear and the same causes can produce different effects. The findings suggest the outcomes of interest often result from combined antecedent conditions rather than a single causal factor. The study confirms that asymmetrical thinking relies on Boolean algebra and set theory principles. Originality/value This study uses both symmetrical and asymmetrical methods to reveal the nuanced information about the relationship that has been tested primarily using symmetrical methods.

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.

Building harmony in diverse society: insights from practical wisdom

2020 ◽  
Vol 36 (2) ◽  
pp. 149-165
Author(s):  
Miftachul Huda ◽  
Nasrul Hisyam Nor Muhamad ◽  
Puji Isyanto ◽  
Razaleigh Muhamat ◽  
Nurazmallail Marni ◽  
...  
Keyword(s):  
Problem Solving ◽  
Design Methodology ◽  
Practical Wisdom ◽  
Peaceful Coexistence ◽  
Core Element ◽  
Content Type ◽  
Topic Analysis ◽  
The Core ◽  
Diverse Society ◽  
Social Level

Purpose Increasing diversity leads to local, national and transnational challenges requiring a novel and explicit problem-solving approach. Practical wisdom, which emerges from an integration knowledge and ability through religious awareness, can promote peaceful coexistence in diverse societies with adequate theological and educational infrastructures. This paper aims to critically examine practical wisdom as the religious awareness to underlying building harmony in the diverse society. Design/methodology/approach Literature from refereed and peer-reviewed journals and articles was reviewed using thematic topic analysis to propose a model of the practical wisdom as a foundation for building harmony in a diverse society. Findings This result shows that there are several discussions with specific objectives of practical wisdom as the result of core understanding of religious awareness underlying the potential solutions in the diverse society; the significant essence of practical wisdom as the core element for building harmony; exploring how practical wisdom should be a wide particular element in building integrity and harmony in the diverse society. Originality/value Practical wisdom can establish peaceful and respectful relations amongst diverse segments of the population. It is, therefore, crucial for scholars and practitioners to explore practical wisdom in depth and devise ways of promoting this important characteristic at a social level through the exchange of common ideas and goals.

scholarly journals Packages of management control systems, entrepreneurial orientation, and performance in Brazilian startups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anderson Betti Frare ◽  
Ana Paula Capuano da Cruz ◽  
Carlos Eduardo Facin Lavarda ◽  
Chris Akroyd
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
High Performance ◽  
Qualitative Comparative Analysis ◽  
Management Control ◽  
Equation Modeling ◽  
Holistic View ◽  
Content Type ◽  
Startup Firms

Purpose This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance. Design/methodology/approach The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). Findings The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package. Research limitations/implications The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance. Practical implications The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance. Originality/value Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.

Owner CEO narcissism, international entrepreneurial orientation and post-entry speed of internationalization: an empirical study of exporting SMEs from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoxuan Li ◽  
Yue Wang ◽  
Miles M. Yang ◽  
Yanzhao Tang
Keyword(s):  
Decision Making ◽  
Entrepreneurial Orientation ◽  
Firm Level ◽  
Content Type ◽  
Market Expansion ◽  
Entry Speed ◽  
Post Entry ◽  
Ceo Narcissism ◽  
The Impact

PurposeThis study explores the impact of owner chief executive officers' (CEO) narcissism on the exporting small to medium-sized enterprises' (SMEs) decision-making on the international market expansion speed after their initial entry. Specifically, the authors use the mechanism of firms' international entrepreneurial orientation (IEO) to examine how owner CEO narcissism may influence SMEs' post-entry speed of internationalization (PSI), both directly and indirectly.Design/methodology/approachTo test the hypotheses, the authors draw on data from a two-wave questionnaire and on archival export data from 291 Chinese exporting SMEs in three municipalities and 17 provinces from 2019 to 2020.FindingsThe results support the theoretical predictions that owner CEO narcissism shapes exporting SMEs' decisions on PSI, both directly and indirectly, through the mediation of firm-level IEO.Originality/valueThe study extends emerging research on the role of CEO narcissism in the upper echelons literature into the international marketing (IM) context. It also offers new insights into what drives exporting SMEs' IM decision-making from a psychological microfoundations perspective. Furthermore, the authors theoretically establish and empirically demonstrate the key role of a firm's IEO as a mediator to complement the existing literature's focus on the direct influence of CEO narcissism on firms' internationalization decisions.

The motivations of crowdlending investors in Spain

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carla Martínez-Climent ◽  
María Guijarro-García ◽  
Agustín Carrilero-Castillo
Keyword(s):  
Intrinsic Motivation ◽  
Perceived Risk ◽  
Extrinsic Motivation ◽  
Business Models ◽  
Qualitative Comparative Analysis ◽  
Age Groups ◽  
New Paradigm ◽  
Core Element ◽  
Content Type ◽  
Insight Into

PurposeThe inability to secure funding is a common problem for entrepreneurs. Crowdlending can help overcome this problem. But what motivates crowdlenders? The aim of this paper is to provide empirical evidence of two forms of investor motivation (intrinsic and extrinsic) in crowdlending in Spain by exploring the elements that affect the low percentage of equity invested.Design/methodology/approachThe study is based on fuzzy-set qualitative comparative analysis (fsQCA) of 206 investors in projects posted on the crowdlending platform Colectual. FsQCA enables the identification of causal configurations that lead to a low percentage of equity invested in crowdlending. The extrinsic motivation conditions are economic return and perceived risk. For intrinsic motivation, the conditions are the corporate social responsibility (CSR) characteristics of the project and CSR reporting by the platform. The age of the investor is also considered to study whether behaviour differs across age groups.FindingsWhen investors attach high importance to economic returns (extrinsic motivation), the percentage of wealth allocated to their investment is low. In relation to intrinsic motivation, investors who attach little importance to CSR invest a low percentage of their wealth. The same is true of those who feel that Colectual's risk management is weak and those aged approximately 26 years old.Practical implicationsUnderstanding the motivations of investors can give platforms insight into the expectations of one of its main stakeholders: the backers themselves. The study also sheds light on business models where CSR is the core element. This paper thus describes a new paradigm to which other platforms can relate. It can prove useful as an incentive to integrate stakeholder concerns in other business models to create not only economic but also social value.Originality/valueInvestors' motivation is shown to be both intrinsic and extrinsic. Until now, there has been little evidence of the motivation of crowdlending investors. Methodologically, this study is also valuable. The use of fsQCA reveals the combinations of conditions that lead to the outcome (i.e. the reasons for low investment in crowdlending). Moreover, the analysis provides insight into the situation in Spain and the reasons why crowdfunding is less developed in Spain than in other European countries.

scholarly journals When is entrepreneurial orientation beneficial for new product performance? The roles of ambidexterity and market turbulence

2020 ◽  
Vol 27 (1) ◽  
pp. 79-98
Author(s):  
Shuangfa Huang ◽  
David Pickernell ◽  
Martina Battisti ◽  
Danny Soetanto ◽  
Qihai Huang
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Qualitative Comparative Analysis ◽  
New Product ◽  
Product Performance ◽  
Content Type ◽  
New Product Performance ◽  
Complementary Role ◽  
Holistic Understanding ◽  
Market Turbulence

PurposeEntrepreneurial orientation (EO) is an exploratory orientation because its dimensions such as innovativeness, proactiveness and risk-taking are the essence of exploration that entails uncertain returns. While literature suggests firms might need to counterbalance and complement EO with another orientation for organisational success, research on this area remains limited. Drawing on organisational learning theory, the purpose of this article is to explore whether and how the EO dimensions and organisational ambidexterity complement each other to enhance new product performance. More specifically, the authors explore the configurations of innovativeness, proactiveness, risk-taking and ambidexterity for superior new product performance under different levels of market turbulence.Design/methodology/approachBased on a configurational perspective, the authors applied fuzzy set qualitative comparative analysis (fsQCA) on a sample of 88 small and medium-sized firms from the UK. Using fsQCA allows the authors to uncover the potential complementary role between the EO dimensions and ambidexterity for superior new product performance.FindingsThe results of this paper reveal three configurations that are sufficient to produce superior new product performance. The results suggest that the EO dimensions and ambidexterity can complement each other to enhance new product performance. Further, under the turbulent market environment, the EO dimensions are also sufficient to produce superior new product performance.Originality/valueBy adopting a configurational perspective using fsQCA, the study provides a more holistic understanding of how the EO dimensions work together to influence new product performance. It also contributes to the literature by uncovering the complementary role of the EO dimensions and ambidexterity in shaping new product performance.

International entrepreneurial orientation amidst post-colonial upheaval: entrepreneurs during the Hong Kong Umbrella Revolution

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Farzad Haider Alvi
Keyword(s):  
Hong Kong ◽  
Entrepreneurial Orientation ◽  
Business Environment ◽  
Ethnic Background ◽  
Firm Level ◽  
Content Type ◽  
Post Colonial ◽  
Colonial Theory ◽  
Inductive Methods ◽  
Internationalization Strategy

Purpose This paper examines the internationalization response of entrepreneurs in Hong Kong to the institutional upheaval of the Umbrella Revolution (UR), analyzed through the lens of post-colonial theory. Design/methodology/approach Inductive methods are applied to interview data on dimensions of ethnic background (local Chinese, regional Chinese and British expatriates) and geographical scope of business (Hong Kong only or global). The analysis consists of first-order concepts, second-order themes and aggregate dimensions which link the results to post-colonial theory and international entrepreneurial orientation (IEO). Findings Amongst informants with a high international entrepreneurial orientation (IEO), strategy response to upheaval is highly influenced by ethnic background and geographical flexibility in a post-colonial context. Applying Bhabhaian post-colonial theory, the Hong Kong UR is found to be a liminal space, where internationalization strategy in response to upheaval belies subconscious, ethics-laden constructions of post-colonial identity, manifesting in counterintuitive ways. Originality/value This paper addresses the paucity of studies on liminality and entrepreneurship and on how IEO responds to acute uncertainty in the business environment. Further, IEO is found to be an individual rather than a firm-level construct. Finally, a post-colonial theory is considered in a larger context of liminality and how the transitional self of entrepreneurs comes to terms with institutional upheaval.

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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