The Relationship Between Entrepreneurial Orientation and Firm Performance for Black Entrepreneurs

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

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Entrepreneurial Orientation, Uncertainty Avoidance and Firm Performance

The International Journal of Entrepreneurship and Innovation ◽

10.5367/000000003101299393 ◽

2003 ◽

Vol 4 (1) ◽

pp. 46-58 ◽

Cited By ~ 78

Author(s):

Fredric William Swierczek ◽

Thai Thanh Ha

Keyword(s):

Firm Performance ◽

Risk Taking ◽

Entrepreneurial Orientation ◽

Job Creation ◽

Uncertainty Avoidance ◽

Business Growth ◽

Net Profit ◽

The Relationship

This study examines the relationship between entrepreneurial orientation (EO) and firm performance in a sample of 306 Vietnamese SMEs and 172 Thai small and medium-sized enterprises (SMEs). Dimensions of entrepreneurial orientation including risk-taking, proactivity and innovativeness are explored. The results indicate that Thai SMEs are more innovative and proactive than their Vietnamese counterparts, while Vietnamese SMEs are inclined to be more risk-taking. Thai SMEs have higher perceived business growth, job creation and net profit than Vietnamese SMEs.

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A Theoretical Framework on Market Orientation-firm Performance Linkage in Textile Processing Industry: Mediating Effect of Entrepreneurial Orientation

Webology ◽

10.14704/web/v18si03/web18039 ◽

2021 ◽

Vol 18 (Special Issue 03) ◽

pp. 261-273

Author(s):

Dibyendu Pal ◽

Kumar Shalender

Keyword(s):

Firm Performance ◽

Organizational Performance ◽

Conceptual Model ◽

Market Orientation ◽

Entrepreneurial Orientation ◽

Mediating Effect ◽

Textile Processing ◽

Processing Industry ◽

Relationship Of ◽

The Relationship

The objective of this theoretical paper is to explore the relationship of market orientation (MO) and organizational performance in the context of Indian textile processing industry. The study also aims to construct a conceptual model which can hypothesize the relationship between market orientation, firm performance, and entrepreneurial orientation (EO). The conceptual model is drawn with the help of extant literature review of studies conducted by various authors in the area of market orientation and entrepreneurial orientation. The study presents a model depicting the inter-relationship among MO, EO and firm performance. The proposed model also propounds that the relationship between market orientation and firm performance is mediated by entrepreneurial orientation. This work will be helpful for different stakeholders of textile processing industry to understand the importance of MO and EO and their impact on the performance of the organization. Also, the proposed conceptual model showing inter-relationship among MO, EO and firm performance is an addition to the existing pool of knowledge.

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Entrepreneurial Orientation and Organizational Learning Ability Analysis for Innovation and Firm Performance

Innovation and Shifting Perspectives in Management Education - Advances in Human Resources Management and Organizational Development ◽

10.4018/978-1-5225-1019-2.ch007 ◽

2017 ◽

pp. 144-165

Author(s):

Fakhraddin Maroofi

Keyword(s):

Organizational Learning ◽

Firm Performance ◽

Entrepreneurial Orientation ◽

Organizational Factors ◽

Innovation Performance ◽

Learning Ability ◽

Organizational Conditions ◽

Mediating Role ◽

Research Stream ◽

The Relationship

Organizational Learning Ability (OLA) and innovation performance playing a mediating role in the Entrepreneurial Orientation (EO) and firm performance, as per this research. Results also suggest that EO improves OLA and innovation performance, which in turn improves firm performance. Innovation performance performs as a mediating variable between EO and firm performance. Our findings make an important contribution to the recent extension of the EO–firm performance research stream focusing on the intermediate links between EO and firm performance. In this paper, we also suggest that the relationship between EO and innovation performance cannot studied ?as a direct relationship, but it is also conditional or dependent on OLA, the organizational factors that facilitate the organizational learning process. EO is a managerial attitude that must be support by certain organizational conditions that facilitate learning and have positive implications for performance. The results support our conceptual model and show its utility in illustrating differences in intra-industry firm performance.

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Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

International Journal of Entrepreneurial Behaviour & Research ◽

10.1108/ijebr-07-2018-0465 ◽

2019 ◽

Vol 25 (3) ◽

pp. 433-456 ◽

Cited By ~ 16

Author(s):

Chengli Shu ◽

Dirk De Clercq ◽

Yunyue Zhou ◽

Cuijuan Liu

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Entrepreneurial Orientation ◽

Transition Economy ◽

Institutional Support ◽

Equation Modeling ◽

Content Type ◽

Strategic Renewal ◽

Firm Financial Performance ◽

The Relationship

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.

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Entrepreneurial Orientation and Performance in South Korea: The Mediating Roles of Dynamic Capabilities and Corporate Entrepreneurship

Entrepreneurship Research Journal ◽

10.1515/erj-2016-0075 ◽

2019 ◽

Vol 0 (0) ◽

Author(s):

Euncheon Lim ◽

Dohyeon Kim

Keyword(s):

Firm Performance ◽

South Korea ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Corporate Entrepreneurship ◽

The South ◽

Empirical Results ◽

South Korean ◽

And Performance ◽

The Relationship

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.

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

International Journal of Innovation Management ◽

10.1142/s1363919618500263 ◽

2018 ◽

Vol 22 (03) ◽

pp. 1850026 ◽

Cited By ~ 2

Author(s):

SAMUEL ADOMAKO

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Entrepreneurial Orientation ◽

Dynamic Capabilities ◽

Primary Data ◽

Moderating Effects ◽

Resource Based View ◽

Intellectual Resource ◽

The Relationship

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.

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

Review of International Business and Strategy ◽

10.1108/ribs-09-2019-0126 ◽

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.

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Mediating effect of marketing capability and reward philosophy in the relationship between entrepreneurial orientation and firm performance

Journal of Global Entrepreneurship Research ◽

10.1186/s40497-015-0023-x ◽

2015 ◽

Vol 5 (1) ◽

Cited By ~ 6

Author(s):

Aluisius Hery Pratono ◽

Rosli Mahmood

Keyword(s):

Firm Performance ◽

Entrepreneurial Orientation ◽

Mediating Effect ◽

Marketing Capability ◽

The Relationship

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Pengaruh Orientasi Kewirausahaan terhadap Kinerja UMKM di Jabodetabek dengan Individualisme sebagai Variabel Moderasi

Jurnal Manajemen Bisnis dan Kewirausahaan ◽

10.24912/jmbk.v5i2.11233 ◽

2021 ◽

Vol 5 (2) ◽

pp. 207

Author(s):

Juli Yanto

Keyword(s):

Firm Performance ◽

Financial Performance ◽

Entrepreneurial Orientation ◽

Sampling Method ◽

Total Sample ◽

Probability Sampling ◽

New Concepts ◽

The Relationship ◽

Positive Effect

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.

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