The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.

Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance

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Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms

Investigates the patterns of technological evolution and their impact on environmental conditions. Seven hypotheses are offered in order to demonstrate that technology is a central force in shaping the environments within which organizations operate. These hypotheses are: (1) technological change within a product class will be characterized by long periods of incremental change punctuated by discontinuities; (1a) technological discontinuities are either competence enhancing (build on existing skills and know-how) or competence destroying (require fundamentally new skills and competences); (2) the locus of innovation will differ for competence destroying and competence-enhancing technological changes. Competence-destroying discontinuities will be initiated by new entrants, while competence-enhancing discontinuities will be initiated by existing firms; (3) competitive uncertainty will be higher after a technological discontinuity than before discontinuity; (4) environmental munificence (i.e., resource availability and support for growth) will be higher after a technological discontinuity than before the discontinuity; (5) competence-enhancing discontinuities will be associated with decreased entry-to-exit ratios and decreased interfirm sales variability (thus strengthening product leaders and increasing barriers to entry). These patterns will be reversed for competence-destroying discontinuities; (6) successive competence-enhancing discontinuities will be associated with smaller increases in uncertainty and munificence; and (7) those organizations that initiate major technological innovations will have higher growth rates than other firms in the product class. Data were collected from U.S. firms in three product classes, domestic scheduled passenger airline transport, Portland cement manufacture, and minicomputer manufacture, from the year of the niche market's inception through 1980. Results indicate that after the three niche openings, there were six competence-enhancing technological discontinuities and two competence-destroying discontinuities in total. Each of these discontinuities had a far greater impact on a key measure of cost or performance than more incremental technological events. In addition, except for the period following the introduction of semiconductor memory in minicomputers, the ability of experienced industry observers to predict demand following technological disruptions was far worse than prior to the disruption. Demand growth following the discontinuity was significantly higher than it was immediately prior to the discontinuity, which had an enormous impact on product-class demand. Also, the ratio of entries to exits was higher in each of the five years before a competence-enhancing discontinuity than during the five subsequent years, though none of the differences is statistically significant. Though market variability in sales growth was expected, it was found that some firms' sales grew explosively while other firms experienced sales declines. It is also suggested that as technology matures, successive competence-enhancing discontinuities increase both uncertainty and munificence, but not as much as those discontinuities that preceded them in establishing the product class. Finally, early adopters of technology were found to experience more growth than other firms. Using three different product types, with a wide range of years from inception, it is shown that technology does evolve through long periods of incremental change punctuated by relatively rare innovations that radically improve the state of the art. Although these incidences of change are rare, they stand out clearly and have significantly altered competitive environments. (SFL)

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Technological Discontinuities and Organizational Environments

Part I. Experimental Studies: 2. Experiment in psychology 3. Experiments on perceiving III Experiments on imaging 4-8. Experiments on remembering: (a) The method of description (b) The method of repeated reproduction (c) The method of picture writing (d) The method of serial reproduction (e) The method of serial reproduction picture material 9. Perceiving, recognizing, remembering 10. A theory of remembering 11. Images and their functions 12. Meaning Part II. Remembering as a Study in Social Psychology: 13. Social psychology 14. Social psychology and the matter of recall 15. Social psychology and the manner of recall 16. Conventionalism 17. The notion of a collective unconscious 18. The basis of social recall 19. A summary and some conclusions.

Remembering. A Study in Experimental and Social Psychology, Cambridge (University Press) 1964.

A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or preconditions for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.

Knowledge Management: An Organizational Capabilities Perspective

Dimensions of Organizational Task Environments.

Corporate-level strategy and business-level strategy are operationalized in terms of interindustry and intra-industry variation, respectively. Variables representing both levels of strategy are use...

https://www.jstor.org/stable/pdfplus/256169.pdf

Corporate-Level Strategy, Business-Level Strategy, and Firm Performance

This study examined the influence of the strength of belief structures on selected aspects of the decision-making process. To examine these issues, a business-acquisition decision scenario was studied in an experiment. Subjects played the role of a CEO of an electronics firm and were asked to evaluate the attractiveness of six potential acquisition candidates and to rate various aspects of the associated decision process. We presented half the subjects with information that the belief structure of their organization was extreme, agreed upon, and clear. The other half was presented with information that there was disagreement about the belief structure and that it was more ambiguous and less extreme. The results clearly showed that the decision process is different for people who were presented with an agreed-upon, extreme, and tightly constructed belief structure when compared to those who received information reflecting a weak and loosely constructed belief structure. A strong belief structure resulted in less positive evaluations, information requested, and money allocated to explore incompatible acquisition candidates (and vice versa for a highly compatible candidate) when compared to subjects using a weak belief structure. In addition, subjects in the strong-belief condition reported that their decision process would be characterized by less doubt, less time, less difficulty, and less conflict compared to subjects in the weak-belief structure condition. Implications for both decision theory and practical decision processes are discussed.

The effects of strong belief structures on information-processing evaluations and choice

An organizational species' resource inputs and outputs comprise its most fundamental openness to its environment. An input-output model based on each species' resource exchanges with other species is a useful framework by which to operationalize and model the community-ecology perspective in organization theory. An input-output model provides a means of identifying each organizational species' niche within a given ecology and a means of modeling each species' direct and indirect dependence on other species for resources.

Modeling Organizational Species' Interdependence in an Ecological Community: An Input-Output Approach

The effects of industry profitability on firm profit were explored for a sample of single business firms. Effects of interindustry variation in profitability were found to be significant and positi...

Donald W. Beard

Papers

Dimensions of Organizational Task Environments.

Corporate-Level Strategy, Business-Level Strategy, and Firm Performance

The effects of strong belief structures on information-processing evaluations and choice

Modeling Organizational Species' Interdependence in an Ecological Community: An Input-Output Approach

Industry Profitability and Firm Performance: A Preliminary Analysis on the Business Portfolio Question.