scholarly journals The Effects of Entrepreneurial Orientation and Environmental Uncertainty on Korean Technology Firms’ R&D Investment

2019 ◽  
Vol 5 (2) ◽  
pp. 29 ◽  
Author(s):  
Jaewook Yoo ◽  
Junic Kim
Keyword(s):  
Entrepreneurial Orientation ◽  
Economic Recession ◽  
Environmental Uncertainty ◽  
Moderating Effects ◽  
Environmental Dynamism ◽  
Strategic Decisions ◽  
Environmental Munificence ◽  
Technology Firms ◽  
Top Managers ◽  
D Investment

This study aims to examine the relationship between top managers’ entrepreneurial orientation and firms’ research and development (R&D) investment and the moderating effects of environmental uncertainty on this relationship. Using a sample of 337 Korean technology firms, we implemented a multiple regression analysis with R&D intensity as a dependent variable, top managers’ entrepreneurial orientation as an independent variable, and environmental uncertainty as a moderating variable. The findings reveal that the entrepreneurial orientation of top managers has significant and positive relationships with firms’ strategic decisions regarding R&D investment. This implies that the tendencies and characteristics of top managers significantly influence firms’ innovation efforts, especially during an economic recession. Furthermore, environmental munificence intensifies the entrepreneurial orientation and R&D investment relationship, while environmental dynamism has a negative moderating effect. On the other hand, environmental hostility does not have any impact on this relationship. The moderating effects of environmental uncertainty imply that firms should carefully consider environmental dynamism and munificence to intensify the positive effect of top managers’ entrepreneurial orientation on firms’ innovation efforts.

The role of top managers in determining investment in innovation: The case of small and medium-sized enterprises in India

2017 ◽  
Vol 35 (5) ◽  
pp. 618-638 ◽  
Author(s):  
Jamie D Collins ◽  
Christopher R Reutzel
Keyword(s):  
Entrepreneurial Orientation ◽  
Firm Investment ◽  
Environmental Munificence ◽  
Organizational Controls ◽  
Top Managers ◽  
Manager Perceptions ◽  
Top Manager ◽  
Survey Responses ◽  
Management Capabilities

This article examines the role of top managers in shaping the innovation investment actions of small and medium-sized enterprises (SMEs) in India. Survey responses from 477 top managers of Indian SMEs suggest that investment in innovation is influenced by top manager perceptions of innovation opportunity attractiveness, as well as ability to appropriate innovation investment value. Specifically, the results indicate an inverted U-shaped relationship between top manager entrepreneurial orientation and firm investment in innovation. They also suggest that top manager perceptions of environmental munificence, firm resource management capabilities, and organizational controls are positively related to firm investment in innovation.

How do group affiliates benefit from dual legitimacy to acquire resources in emerging economies? Evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoyong Zheng
Keyword(s):  
Emerging Economies ◽  
Structural Equation ◽  
Environmental Uncertainty ◽  
Resource Acquisition ◽  
Equation Modeling ◽  
Hierarchical Regression ◽  
Group Affiliation ◽  
Content Type ◽  
Environmental Munificence ◽  
New Interpretation

Purpose This paper aims to examine the relationships between the group affiliates’ dual legitimacy (membership legitimacy and societal legitimacy) and dual resource acquisition (intra-group and out-group), and the moderating roles of environmental uncertainty and munificence in the emerging economies. Design/methodology/approach This paper adopts hierarchical regression analysis to test the hypotheses based on the unique data of 251 group affiliated firms in China and applies the alternative measurements and alternative methodology of structural equation modeling into robustness check to confirm the results. Findings The results show as follows: the group affiliates can benefit from membership legitimacy for intra-group resource acquisition and out-group resource acquisition through the mediations of societal legitimacy and intra-group resource acquisition. However, in the linkage between affiliates’ membership legitimacy and intra-group resource acquisition and the linkage between societal legitimacy and out-group resource acquisition, environmental uncertainty plays the positive moderating roles while environmental munificence plays the negative moderating roles. Under the condition of high environmental uncertainty and low environmental munificence, the linkage between membership legitimacy and intra-group resource acquisition, and the linkage between societal legitimacy and out-group resource acquisition reach the strongest level. Research limitations/implications The findings highlight the importance of dual legitimacy building for group affiliates to acquire resources both inside and outside the business group when they operate in emerging economies characterized by high environmental uncertainty and low environmental munificence. However, it does not explore the contextual factors (e.g. institutional distance) affecting the relationship between the affiliate’s membership legitimacy and societal legitimacy. Then more group-level factors are expected to be included and explored with multi-level models in the future studies. Originality/value The findings reveal the mechanism of how group affiliates benefiting differently from dual legitimacy to acquire resources in the emerging economies, which also provide a new interpretation for the questions of who benefiting more from the group affiliation, how and why (Carney et al., 2009). This research also explores the moderating roles of task environmental characteristics (environmental uncertainty and environmental munificence) on the affiliate's dual legitimacy and dual resource acquisition, which helps understand why legitimacy building is more important in terms of resource acquisition in the emerging economy characterized by uncertainty and non-munificence.

scholarly journals Entrepreneurial mindset of information and communication technology firms

2008 ◽  
Vol 10 (4) ◽  
Author(s):  
M. J. Scheepers
Keyword(s):  
Economic Growth ◽  
Organizational Climate ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Entrepreneurial Orientation ◽  
Climate Data ◽  
Telephone Interviews ◽  
Technology Firms ◽  
Information And Communication

Limited research focuses on the entrepreneurial mindset of information and communication technology (ICT) firms, despite the opportunities in and importance of this sector for economic growth. In this article, the entrepreneurial mindset of ICT firms is described by using three indicators: entrepreneurial orientation, e-business initiatives and a supportive organizational climate. Data were obtained using structured telephone interviews with 144 ICT firms. The findings indicate that the three indicators of an entrepreneurial mindset are associated and can be linked to performance. It is recommended that managers create a supportive climate for entrepreneurship by offering rewards, empowering employees and providing leadership and support for initiatives.

Invest in Innovation or Not? How Managerial Cognition and Attention Allocation Shape Corporate Responses to Performance Shortfalls

2021 ◽  
pp. 1-36
Author(s):  
Lerong He ◽  
Liying Huang ◽  
Guangqing Yang
Keyword(s):  
Performance Feedback ◽  
Attention Allocation ◽  
High Tech ◽  
Moderating Effects ◽  
Managerial Cognition ◽  
Industry Competition ◽  
Aspiration Levels ◽  
The Relationship ◽  
Underperforming Firms ◽  
D Investment

ABSTRACT This study investigates the influence of managerial cognition and attention allocation on firms’ responses to negative performance feedback. We explore how managerial cognition, as shaped by managers’ experiences, connections, positions, and industry environments, affects underperforming firms’ attention allocation and, consequently, their decisions to invest in innovation. Utilizing a longitudinal sample of Chinese high-tech firms from 2009 to 2017, we find that firms increase investment in research and development (R&D) when performance falls below aspiration levels. We also document that underperforming firms are associated with an even larger R&D investment increase when their CEOs have an R&D or engineering background, serve simultaneously as the board chair, or are not politically connected. In addition, we highlight the moderating effects of industry competition and industry norms on the relationship between firm underperformance and R&D intensity. We conclude that managerial cognition affects firms’ allocation of attention to innovation as a solution for closing performance gaps and shapes corporate responses to negative performance feedback.

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.

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