Entrepreneurial orientation and second-order competences : the moderating role of environmental hostility and organizational structure (original) (raw)
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Journal of Economics and Behavioral Studies, 2017
While the EO-performance nexus has received extensive attention in entrepreneurship literature, other studies suggest that the magnitude of this relationship is dependent upon the external environment and internal organizational processes. The objective of this study was to measure the effects of EO (innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness) on SME performance, as well as to examine the moderating effect of environmental hostility on the EO-performance relationship in South Africa. The study showed thatwhile innovativeness and proactiveness does not have a significant effect on SME performance; risk taking propensity, competitive aggressiveness, and autonomy have a significant positive effect on SME performance. It was also seen that while the risk taking-performance relationship is negatively moderated by environmental hostility, the competitive aggressiveness-performance relationship is positively moderated by environmental hostility. This suggest the need for SMEs to always align their business strategies with appropriate EO dimensions to mitigate some of the negative consequences of operating in hostile business environments and improve the performance of their businesses.
Entrepreneurial Business and Economics Review, 2020
The objective of the study is to investigate the relationship between Entrepreneurial Orientation and the performance of small firms in Nigeria to determine the effect of environmental hostility towards this relationship. Research Design & Methods: A survey was conducted on small firms. The gathered data were analysed with Andrew Hayes' Simultaneous Entry on SPSS 23.0 and PROCESS 3. Findings: We discovered that there is no significant relationship between Entrepreneurial Orientation and firm performance, while environmental hostility moderates this relationship positively. We concluded that a hostile environment motivates firms to adopt Entrepreneurial Orientation, and ultimately improve their performance. Implications & Recommendations: Environmental hostility is a crucial element in determining how Entrepreneurial Orientation relates to small firm performance. Therefore, owners/managers must identify and strengthen these factors that will enable them to improve on their Entrepreneurial Orientation to survive hostile business environments. Contribution & Value Added: Concerning the Resource-Based Theory (RBT) and contingency theories, this study advances the field of Entrepreneurial Orientation by showing how the two combine to explain the Entrepreneurial Orientation-performance relationship in a developing economy. Article type: research article
The Mediating Role of Entrepreneurial Orientation in the Task Environment–Performance Relationship
Journal of Management, 2011
Despite the importance of the external task environment for firm performance, little is known about the mechanisms that enable firms to benefit from a specific environmental setting. The authors argue that firms adjust their entrepreneurial orientation (EO) to the external environment and use it as a mechanism to transform the advantages provided by the environment into above-average performance levels. Specifically, the authors use meta-analysis supplemented by structural equation modeling to explore the links among environmental munificence, hostility, dynamism and complexity, EO, and firm performance in a mediation model. The results suggest that environmental munificence, dynamism, and complexity affect EO and, in turn, firm performance. The authors discuss the meta-analytical findings with respect to their theoretical contribution and their practical implications.
Asia Pacific journal of innovation and entrepreneurship, 2023
Purpose-The aim of this study is to empirically examine the impact of several environmental, organisational and managerial characteristics on entrepreneurial orientation (EO). Design/methodology/approach-This study draws on resource-based view theory to construct a quantitative research method. Data were collected by means of a structured questionnaire and analysed by SmartPLS 3 (partial least squares structural equation modelling) software. The sample comprised 185 managers at domestic Israeli companies within various industries. Findings-The data analysis shows that market turbulence, technological turbulence and risk-taking tendency have a positive impact on EO, while centralisation has a negative effect on EO, and formalisation does not affect it at all. Originality/value-This study emphasises the importance of environmental, organisational and managerial characteristics as capabilities within an organisation and has practical implications for managers with regard to achieving a competitive advantage by promoting their EO.
The role of entrepreneurial orientation on corporate performance: A moderated mediation model
Entrepreneurial orientation (EO), corporate entrepreneurship (CE) and their connections with corporate performance attract more attention during last decades. Researchers claimed that the EO-performance relationship is very complicated. Future studies should incorporate moderator and mediator factors in their models to precisely explain that complexity. In this paper we have chosen the most common environmental characteristics include environmental dynamism and environmental hostility to investigate their moderation effects. In this study EO refers to tendency of firms to have entrepreneurial activities while CE points out to the their actual entrepreneurial activities. Previous studies mentioned EO as the basis and necessary condition of CE. Therefore, we have supposed a mediation role for CE in EO-performance relationship. By incorporating this mediation model with environmental moderators, the final moderated mediation model of EO-CEperformance and environmental characteristics i...
Entrepreneurial orientation, environmental hostility and SME profitability: a contingency approach
2013
This study investigates the effect of the entrepreneurial orientation (EO) on SME financial performance. The essay also proposes a contingency model to explore the moderating effects of environmental hostility on the relationship between EO and profitability. The study was conducted using a sample of 121 manufacturing SMEs in Spain. Results confirm the positive influence of EO on a firm's profitability. More importantly, the impact of EO on SME profitability is higher when there is a fit between EO and the external environment.
Entrepreneurial Orientation, Environmental Hostility and SMEs Profitability: A Contingency Approach
SSRN Electronic Journal, 2000
This study investigates the effect of the entrepreneurial orientation (EO) on SME financial performance. The essay also proposes a contingency model to explore the moderating effects of environmental hostility on the relationship between EO and profitability. The study was conducted using a sample of 121 manufacturing SMEs in Spain. Results confirm the positive influence of EO on a firm's profitability. More importantly, the impact of EO on SME profitability is higher when there is a fit between EO and the external environment.
2019
The purpose of the study is to examine the moderating effect of the external environmental characteristics on the relationship between entrepreneurial orientation and SMEs performance. Survey method of research was used by personally administering questionnaires to the owners/managers. Multistage sampling technique was used in selecting 470 SMEs that partook in the survey. SPSS 24 and PLS-SEM 3.0 were employed in the analysis of the data. The results indicated that EO significantly affects SMEs performance. Similarly, there is a significant moderating effect of environmental dynamism on the relationship between EO and SMEs performance. Surprisingly, there is an adverse moderating effect of environmental complexity and hostility on the relationship between EO and SMEs performance. While environmental diversity shows insignificant moderating effect. Therefore, the study put forward that to attain high SMEs performance. There is a need for owners/managers to consider environmental char...
Sustainability, 2020
This study investigated the effect of entrepreneurial orientation on firm performance with the firm resource orchestration capability and environmental dynamics in moderating roles. Using survey data collected from 301 Korean manufacturing and service firms, we devised a three-way interaction model to uncover the complex and dynamic conditions that maximize the effect of entrepreneurial orientation on firm performance. We found a positive association between entrepreneurial orientation and firm performance. Moreover, our findings indicated that both the firm resource orchestration capability and environmental dynamics played positive moderating roles in the above relationship. The results also showed that, in the case of a high level of environmental dynamics, entrepreneurial orientation was more positively related to firm performance for firms with a high resource orchestration capability. In addition, in the case of low resource orchestration capability, entrepreneurial orientatio...