Moderating influences on the entrepreneurial orientation: Business performance relationship in SMEs

Author(s):  
João J Ferreira ◽  
Cristina I Fernandes ◽  
Sascha Kraus ◽  
William C McDowell

Calls for more in-depth research on the relationship between entrepreneurial orientation (EO) and business performance have been dominant. Thus, this research explores whether the relationship between EO and the performance of small and medium-sized enterprises (SME) is conditioned (or affected) by some moderating factors. A framework is proposed which considers how networks, environmental conditions, entrepreneur’s experience, and entrepreneur’s level of education can moderate this relationship. From a sample of 204 SMEs, our study shows that not all factors, internal and external to the EO, have the same effect. Although the entrepreneur’s experience (as an internal factor) and the nature of the environment (external factor) have not been shown to influence the relationship between the EO and the performance of the SMEs, we found that both education and networks positively impact the EO and performance relationship.

2015 ◽  
Vol 27 (5) ◽  
pp. 714-738 ◽  
Author(s):  
Jorge Pereira-Moliner ◽  
Xavier Font ◽  
Juan José Tarí ◽  
Jose F. Molina-Azorin ◽  
Maria D. Lopez-Gamero ◽  
...  

Purpose – This paper aims to analyse the influence of environmental proactivity on cost and differentiation competitive advantages, and to explore the double relationship between environmental proactivity and business performance. Design/methodology/approach – The population consists of all three- to five-star hotels in Spain. A sample of 350 hotels was classified according to environmental proactivity and performance levels, employing a two-step cluster analysis. Significant differences between groups were examined. Findings – The results show two types of environmental behaviour (reactive and proactive), with proactive hotels developing significantly better on both cost and differentiation competitive advantage and achieving significantly higher performance levels. Hotels which achieve above average business performance levels are significantly more environmentally proactive. Research limitations/implications – The present paper demonstrates that environmental management is related to competitive advantages and business performance. Environmental management systems are more developed in higher category, chain-affiliated and larger hotels. This could be due to having more resources to develop their environmental capability. The environmental proactivity scale employed in this study is presented as a reference measure for hotel managers to benchmark their current practices and implement environmental improvements. Originality/value – First, measuring environmental proactivity using four managerial systems (operative, information, strategic and technical) is innovative and provides a more detailed approach to measuring environmental proactivity. Second, demonstrating a double association between environmental proactivity and performance provides fresh insights into the relationship between these variables.


Author(s):  
Ruth Wanjiku Muriithi ◽  
Kyalo Teresia Ngina ◽  
Kinyanjui Josphat Kamau

The purpose of this study was to determine the relationship between involvement, Entrepreneurial orientation and performance of Christian Faith-Based Hotels (CFBHs) in Kenya. Involvement is the extent to which subordinate staff feels a sense of ownership and responsibility to the organization. Involvement has captured interest throughout the last decade because of its important relationship between the concept itself and its outcomes such as gaining competitive advantage and performance. Entrepreneurial Orientation is key as it determines the success or failure of Christian Faith-Based Hotels. The study was guided by the use of the Denison’s organizational model and used the mixed methods approach guided by a cross-sectional survey research design. The population of the study included 72 managers and 1878 subordinate staff from 24 Christian Faith-Based Hotels in Kenya and the sample size comprised 394 respondents. The data were analyzed using descriptive and inferential statistics. Findings revealed that organization culture involvement significantly influences the performance of Christian Faith-Based Hotels in Kenya. The dimensions of involvement Empowerment, Team Orientation, and Capability development were all found to have significant influences on performance in all critical ratios 2.829, 2.301 and 3.502 respectively which are all greater than the 1.96 Z score at 5% level of significance. Entrepreneurial orientation was also found to significantly moderate the relationship between organization culture involvement significantly influences the performance of Christian Faith-Based Hotels in Kenya. A significant change in R-square of 0.063 was found due to the inclusion of interaction terms between involvement dimensions and entrepreneurial orientation. The p-value of the F-change due to the change in R-square was found to be 0.043 implying a significant change but consequently, there is a significant moderating effect.


2014 ◽  
Vol 15 (3) ◽  
pp. 544-561 ◽  
Author(s):  
Li Cai ◽  
Qing Liu ◽  
Shengliang Deng ◽  
Dan Cao

This research investigates the effects of entrepreneurial orientation and external technology acquisition on the performance of technology-based new ventures in the context of a transitional economy. An analysis of the cross-sectional data from 123 Chinese technology-based new ventures was conducted. The results of the analysis support the contention that both the acquisition of external technology and entrepreneurial orientation improve new ventures’ performance. Additionally, the interaction of entrepreneurial orientation and external technology acquisition positively moderates the relationship between entrepreneurial orientation and performance of technology-based new ventures. Overall, this study contributes to our enhanced understanding of the complex relationship among entrepreneurial orientation, external technology acquisition and firm performance under transitional economic conditions. Firms from emerging economies, especially technologybased new ventures, may find the study findings useful in guiding their decision on external technology acquisition.


2019 ◽  
Vol 24 (02) ◽  
pp. 1950008
Author(s):  
CHONNATCHA KUNGWANSUPAPHAN ◽  
JIBON KUMAR SHARMA LEIHAOTHABAM

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.


2019 ◽  
Vol 37 (5) ◽  
pp. 732-754 ◽  
Author(s):  
Saumyaranjan Sahoo

Purpose Modern manufacturing systems require tools and techniques that take cognizance of the social (concerning people and relations) as well as the technical environment. The purpose of this paper is to explore the relationship between the social and technical aspects of lean manufacturing practices and their effects on business performance outcomes. Design/methodology/approach The hypothesized relationships for this study are tested with data collected from 148 Indian manufacturing firms by using SPSS and AMOS statistical software. Findings The analysis of the study was conducted using structural equation modeling (SEM) technique, which indicated that both “soft” and “hard” lean practices are positively related to business performance parameters. The findings also demonstrated that “hard” lean practices fully mediate the relationship between “soft” lean practices and business performance parameters. Research limitations/implications There are some limitations of this study. Although a cross-sectional survey has been applied, the research does not permit us to account for the lag between implementation and performance. It also brings the opinion of a limited number of Indian experts about lean manufacturing systems; hence, the sample size could be increased and the nationality of the respondent could be expanded for future research. Practical implications The paper would be of interest to Lean practitioners, and the results of this study can be used in organizations to put a focus on social-cultural changes while applying lean technical tools when it comes to practices as well as importance. Originality/value This paper extends theoretical contribution in production and operations management literature, highlighting how social and technical practices have to interact to enable a successful lean manufacturing implementation.


SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401986581 ◽  
Author(s):  
Mariem Khadhraoui ◽  
Michel Plaisent ◽  
Lassaad Lakhal ◽  
Bernard Prosper

Previous studies considered entrepreneurial orientation as a determinant of firms’ growth and performance. In this research, we are interested in spin-offs. Indeed, we aim to study the relationship between their entrepreneurial orientation and their performance. Therefore, we carried out a cross-cultural study in three different countries; Tunisia, Canada, and Morocco. We opted for a personal survey. We addressed our questionnaire to 180 managers of spin-offs and we analyzed the research variables using SPSS 20.00 (Statistical Packages for Social Sciences) and Smart PLS 3 (Partial Least Squares). Our findings highlight a positive correlation between entrepreneurial orientation and performance of spin-offs within the three samples.


Author(s):  
Di Cai ◽  
Taiwen Feng ◽  
Zhenglin Zhang

Previous studies are inconsistent in their findings about the relationship between external involvement and performance. The authors attribute this inconsistency to the misfit between external involvement and business environment. Drawing the concept of fit between information processing capabilities and needs from information processing theory, they develop the fitting patterns between external involvement and business environment and examine their impacts on performance. Information processing capabilities are measured by the degree of two types of external involvement in the NPD process and information processing needs are assessed based on three dimensions of business environment. Cluster analysis was used to develop the taxonomies of fit between external involvement and business environment. Analysis of variance (ANOVA) was used to examine the impacts of fitting patterns between external involvement and business environment on performance. The results reveal six fitting patterns between external involvement and business environment. ANOVA results show that the fitting patterns between external involvement and business environment are related to both operational performance and business performance, supporting our fit theory.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erny Rachmawati ◽  
Suliyanto ◽  
Agus Suroso

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.


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.


2019 ◽  
Vol 0 (0) ◽  
Author(s):  
Ahmet M. Fis ◽  
Dilek Cetindamar

Abstract This paper explores the relationship between corporate entrepreneurship and performance by developing a comprehensive theoretical model based on Schumpeterian understanding of entrepreneurship supported with the Theory of Planned Behavior from social psychology. The model shows how organizational culture (value) triggers a chain effect through its influence on entrepreneurial orientation (attitude) and managerial support (intentions) that ultimately generate impact on corporate entrepreneurship (behavior). We test our model in an emerging economy context and present our results with implications to theory and practice.


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