THE MODERATING EFFECTS OF ADAPTIVE AND INTELLECTUAL RESOURCE CAPABILITIES ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND FINANCIAL PERFORMANCE

2018 ◽  
Vol 22 (03) ◽  
pp. 1850026 ◽  
Author(s):  
SAMUEL ADOMAKO

Extant entrepreneurial orientation (EO) literature suggests that EO positively affects firm performance, but several factors influence the potency of this relationship. However, the influence of adaptive and intellectual resource capabilities on the EO–performance linkage lacks theoretical clarity. Accordingly, deriving insights from the resource-based view and dynamic capabilities framework, this paper argues that variations in financial performance are a function of degree of EO and levels of adaptive and intellectual resource capabilities. Using primary data gathered from 245 small and medium-sized enterprises (SMEs) operating in Ghana, the study finds that when a firm’s adaptive and intellectual resource capabilities are well developed and deployed, the potency of EO as a driver of financial performance is enhanced.

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu

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.


2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Euncheon Lim ◽  
Dohyeon Kim

Abstract Although a cumulative body of literature explains entrepreneurial orientation (EO) and firm performance, there remain differing views on the mechanisms underlying this relationship. The purpose of this study is to investigate the effect of EO on firm performance by considering the roles of dynamic capabilities (DC) and corporate entrepreneurship (CE). We propose that DC and CE mediate the relationship between EO and firm performance, and our empirical results support these propositions. This study fills a gap in the literature on the EO–performance relationship by considering the linkages among disposition, capabilities, and activities in the South Korean context.


2021 ◽  
Vol 5 (2) ◽  
pp. 207
Author(s):  
Juli Yanto

The purpose of this study is to examine the effects of Entrepreneurship Orientation conducted by SMEs on firm performance, and exploring new concepts regarding Executive’s Individualism to moderate Entrepreneurial Orientation on SMEs performance. The sample was selected using a non-probability sampling method. The total sample chosen was 259 SMEs in the Greater Jakarta area. The method of analysis used was PLS-SEM. The results of this study indicate that 1) Entrepreneurial Orientation has a positive effect on the performance of SMEs companies in the Greater Jakarta area 2) Executive’s Individualism strengthens the relationship between Entrepreneurship Orientation with SMEs Firm Performance in the Greater Jakarta area, specifically financial performance - profit. Tujuan dari penelitian ini adalah untuk menguji pengaruh Orientasi Kewirausahaan yang dilakukan oleh UMKM terhadap kinerja perusahaan, dan mengeksplorasi konsep-konsep baru tentang Individualisme Eksekutif dalam memoderasi Orientasi Kewirausahaan terhadap kinerja UMKM. Sampel dipilih menggunakan metode sampling non-probabilitas. Total sampel yang dipilih adalah 259 UMKM di wilayah Jabodetabek. Metode analisis yang digunakan adalah PLS-SEM. Hasil penelitian ini menunjukkan bahwa 1) Orientasi Kewirausahaan memiliki efek positif pada kinerja UMKM di wilayah Jabodetabek 2) Eksekutif Individualisme memperkuat hubungan antara Orientasi Kewirausahaan dengan Kinerja UMKM di wilayah Jabodetabek, khususnya kinerja keuangan - profit.


2021 ◽  
Vol 17 (38) ◽  
pp. 58
Author(s):  
Adrian Kamotho Njenga ◽  
Kate Litondo ◽  
Germano Mwabu

Technological advancements have presented firms with an opportunity to use mobile payments to enhance their performance. This study explores the relationship between mobile payments and firm performance in Kenya. The moderating effects of demographics are also studied. Using primary data collected from 289 supermarkets based in Nairobi City County, we determine whether the use of mobile payment has enhanced firm performance as defined by profitability, operation costs, revenues and the number of customers served. Empirical results from logit regression analysis reveal that the use of a mobile to make payments in supermarkets directly impacts the performance of supermarkets. Additionally, consumer characteristics have a significant moderating effect on the relationship between mobile payments and profitability of supermarkets. We conclude that the use of mobiles to make payments in supermarkets in Kenya has acquired the requisite critical mass level to be in a position to influence revenues of these firms.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Lucio Fuentelsaz ◽  
Consuelo González ◽  
Jackson Andre da Silva

Abstract The relationship between entrepreneurial orientation and firm performance has been the object of a number of studies, but the literature has not yet reached a consensus about the true relationship between the two variables. Previous research attributes this lack of consensus to the moderating effect of numerous variables, including those related to the firm’s environment. While the literature evaluates the direct and moderating effects of uncertainty and hostility on the relationship between entrepreneurial orientation and firm performance, no one has investigated how these environmental variables simultaneously affect this relationship. To fill this gap, we use a configurational approach to clarify the nature of the relationship between entrepreneurial orientation and firm performance and investigate how hostility and uncertainty jointly moderate this relationship. Our arguments are tested using a sample of 140 Brazilian start-ups, and we conclude that there is a positive relationship between entrepreneurial orientation and firm performance. Nevertheless, this relationship is jointly conditioned by the level of environmental hostility and uncertainty.


Author(s):  
K. M. V. Sachitra

Purpose: This paper analyses the moderating effects of farm owner’s gender and business intention which could impact on the resource-capability-competitive advantage linkage in agribusiness. The study adopts the resource-based view in combination with dynamic capabilities. Design: The sample of the consisted of the farm owners who have experience in commercial cultivation of minor export crops in Sri Lanka. A self-administered structured questionnaire was used to collect data. Findings: Based on the data collected from 456 farm owners, results of the multiple regression analysis suggest farm owner’s business intention has moderating effects upon the relationship between resources, capabilities and competitive advantage. However, statistically significant moderation effect of farm owner’s gender on the relationship between resources, capabilities and farm’s competitive advantage was not reported. Research implications: The result gives positive sign that gender is not a constraint factor to gain competitive advantage at firm level and psyche of the leaders regarding their business intention which can lead to enhance the link between resources, dynamic capabilities and competitive advantage. Originality: The literature gap in competitive advantage literature by highlighting the potential roles of gender and business intention play in the resource-capability-competitive advantage interaction has been addressed. The results provide practical implications for policy makers, government and local communities with regard to selecting suitable resources and integrating them with proper capabilities for greater competitive advantage of the agribusiness sector.


SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110672
Author(s):  
Xiu-e Zhang ◽  
Qing Li

It is still unclear whether the green proactiveness orientation (GPO) adopted by agricultural new ventures boost firm performance, and what is its internal mechanism, especially in the transition economies where agriculture accounts for a significant proportion. Therefore, drawing on the theory of green entrepreneurial orientation and natural-resource-based view, this study used the structural equation model combined with Bootstrapping to test the direct and indirect effects of GPO on firm performance. Results from 301 agricultural new ventures in China demonstrate that GPO has a positive influence on environmental performance, but its influence on financial performance is not significant. Sustainable opportunity recognition (SOR) partially mediates the relationship between GPO and environmental performance and fully mediates the relationship between GPO and financial performance. Besides, we find that environmental performance plays a mediating role between SOR and financial performance. This study, the first of its kind, focuses on green entrepreneurship of agricultural new ventures in the transition economy to enrich the literature on green entrepreneurial orientation through GPO. It also provides some valuable references for managers to recognize sustainable entrepreneurial opportunities through GPO to improve their environmental and financial performance. These could be important in terms of both management and policy implications.


1997 ◽  
Vol 22 (1) ◽  
pp. 47-58 ◽  
Author(s):  
Richard C. Becherer ◽  
John G. Maurer

A firm's marketing orientation and entrepreneurial orientation intuitively should relate to organizational performance. Considerable theory can be found concerning the causes and consequences of each orientation as well as their relationship, but little empirical evidence exists, especially for small-firm samples. This paper examines the relationship between the two concepts and how this relationship is moderated by the firm's external environment. In addition, the relationship of marketing orientation and entrepreneurial orientation to firm performance and the moderating effects of the environment on these two relationships are examined. The sample consists of entrepreneurs, defined as those individuals who have started or purchased a small business, and who are still leading the business they started or purchased.


2020 ◽  
Vol 24 (1) ◽  
pp. 131
Author(s):  
Raymond Dionysus, Agus Zainul Arifin

This study aims to verify of the relationship between Entrepreneurship Orientation and Market Orientation to Small and Medium Enterprise (SME) Performance, using the Resource Based View (RBV) theory approach. The research object used was SME entrepreneurs in DKI Jakarta. This research uses a quantitative research design. The data used in this research consists of primary data and collected through Google Forms, which are distributed online. The amount of data collected was 190 samples. The collected data will be analyzed using SEM-PLS Version 3.3.2. Statistical analysis test the outer and inner models. The results obtained indicate that Entrepreneurship Orientation plays a role in SME Performance, and Market Orientation does not affect SME Performance. The implication of this research shows that the Resource Based View theory is right to explain the relationship between Entrepreneurial Orientation and SME Performance because SME performance will be better if it has Entrepreneurial Orientation.


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