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Journal ArticleDOI

Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance

TL;DR: In this article, a sample consisting of 1,668 small-to-medium sized enterprises (SMEs) in nine countries across 13 different industries was used to provide a finer-grained analysis of the EO-performance relationship.
Abstract: Previous studies have generally established a positive relationship between aggregated measures of entrepreneurial orientation (EO) and firm performance. However, there are theoretical reasons suggesting that three dimensions of EO (innovativeness, proactiveness, and risk-taking) may possess differential relationships with performance in smaller firms. This study utilizes a sample consisting of 1,668 small-to-medium sized enterprises (SMEs) in nine countries across 13 different industries to provide a finer-grained analysis of the EO-performance relationship. Specifically, we theorize and test a non-monotonic influence of innovativeness, proactiveness, and risk-taking on SME performance. Innovativeness and proactiveness displayed predominantly positive U-shaped relationships with SME performance. Risk-taking, however, displayed a predominantly negative U-shaped relationship with SME performance. Further, individualism was found to positively moderate the relationships between innovativeness-performance and proactiveness-performance. Taken together, these results suggest that differential relationships exist between three dimensions of EO and SME performance, with important theoretical implications for future EO research.
Citations
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01 Jan 2010
TL;DR: Two potential causal mechanisms underlying the observed entrepreneurial orientation (EO)–performance relationship are examined and empirical support is found for the notion that EO might be a performance–variance–enhancing strategic orientation rather than a performance-mean-enhancing orientation.
Abstract: This article examines two potential causal mechanisms underlying the observed entrepreneurial orientation (EO)–performance relationship. We find empirical support for the notion that EO might be a performance–variance-enhancing strategic orientation rather than a performance–mean-enhancing orientation. With such a conceptualization, performance variance (along with, or instead of, mean performance) and failure take center stage. To address the question of “where to from here,” we discuss a number of research opportunities that we believe are going to make important contributions to the entrepreneurship and strategy literature.

311 citations

Journal ArticleDOI
TL;DR: In this paper, the authors integrate the international business and entrepreneurship literatures by examining the independent influences of innovativeness, proactiveness, and risk-taking on the ability of a firm to broaden its scope across international markets.

257 citations


Cites background or result from "Disaggregating entrepreneurial orie..."

  • ...For example, innovativeness involves upfront investments (Kreiser et al., 2013), proactiveness entails high search, learning, and retaliation costs (Bell, 1995), and risk-taking requires greater slack for potential losses (Shrader et al., 2000)....

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  • ...Our results are also complementary to those found in Kreiser et al. (2013), who showed that in small firms, innovativeness and proactiveness displayed positive U-shaped relationships with SME perceived sales growth, while risk-taking assumed a predominantly negative U-shaped relationship....

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  • ...…example, the extent of trial and error that underlies innovation has the potential to limit the ability of firms to meet short-term financial obligations (Kreiser et al., 2013), and in turn drain resources from other value-creating activities critical to venturing abroad (Rosenbusch et al., 2011)....

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  • ...Indeed, potentially diminishing returns have been found to characterize the entrepreneurial orientation dimensions (Kreiser et al., 2013 and Wales et al., 2013)....

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Journal ArticleDOI
TL;DR: In this paper, the authors propose and test a contingency framework to evaluate the relationship between entrepreneurial orientation and performance in seven national contexts, using a data set of 1248 SMEs from seven different national contexts.

174 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of knowledge management capabilities on business model innovation and how these effects are moderated by a firm's risk-taking tolerance, and found that knowledge management is only effective for firms with a low risk taking tolerance.

160 citations

Journal ArticleDOI
TL;DR: This article shed new light on the structure of the relationship between entrepreneurial orientation (EO) and firm performance and how this relationship varies across contexts using commonality analysis, and they found that entrepreneurial orientation is correlated with firm performance.
Abstract: We shed new light on the structure of the relationship between entrepreneurial orientation (EO) and firm performance and how this relationship varies across contexts. Using commonality analysis, we...

158 citations


Cites background or methods from "Disaggregating entrepreneurial orie..."

  • ...November, 2017 987 EO, but there is initial evidence for possibly nonlinear effects of the dimensions of EO on firm performance (cf. Tang et al., 2008; Wales, Patel, Parida, & Kreiser, 2013; Kreiser et al., 2013)....

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  • ...First, focusing on linear effects is quite common in research conducted on EO, but there is initial evidence for possibly non-linear effects of the dimensions of EO on firm performance (cf. Tang et al., 2008; Wales, Patel, Parida, & Kreiser, 2013b; Kreiser et al., 2013)....

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  • ...We employed the eightitem version of the instrument with responses from one to five, which has been used in several studies before (e.g., Kreiser et al., 2002; Tang, Tang, Marino, Zhang, & Li, 2008; Kreiser et al., 2013)....

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  • ...Consistent with the majority of the extant EO research, we consider EO to encompass three dimensions, namely innovativeness, proactiveness, and risk taking (cf. Kreiser et al., 2013; see also the recent literature reviews by Wales, Gupta, et al. and Wales, 2016)....

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  • ...We employed the eight-item version of the instrument with responses from one to five, which has been used in several studies before (e.g., Kreiser et al., 2002; Tang et al., 2008; Kreiser et al., 2013)....

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References
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Book
01 Jan 1991
TL;DR: In this article, the effects of predictor scaling on the coefficients of regression equations are investigated. But, they focus mainly on the effect of predictors scaling on coefficients of regressions.
Abstract: Introduction Interactions between Continuous Predictors in Multiple Regression The Effects of Predictor Scaling on Coefficients of Regression Equations Testing and Probing Three-Way Interactions Structuring Regression Equations to Reflect Higher Order Relationships Model and Effect Testing with Higher Order Terms Interactions between Categorical and Continuous Variables Reliability and Statistical Power Conclusion Some Contrasts Between ANOVA and MR in Practice

27,897 citations

Book
01 Nov 1980
TL;DR: In his book Culture's Consequences, Geert Hofstede proposed four dimensions on which the differences among national cultures can be understood: Individualism, Power Distance, Uncertainty Avoidance and Masculinity as mentioned in this paper.
Abstract: In his bestselling book Culture's Consequences, Geert Hofstede proposed four dimensions on which the differences among national cultures can be understood: Individualism, Power Distance, Uncertainty Avoidance and Masculinity. This volume comprises the first in-depth discussion of the masculinity dimension and how it can help us to understand differences among cultures. The book begins with a general explanation of the masculinity dimension, and discusses how it illuminates broad features of different cultures. The following parts apply the dimension more specifically to gender (and gender identity), sexuality (and sexual behaviour) and religion, probably the most influential variable of all. Hofstede closes the book with a synthesizing statement about cultural values as they are linked to sexuality, gender and religion.

19,826 citations

Book
01 Jan 1974
TL;DR: Applied Linear Statistical Models 5e as discussed by the authors is the leading authoritative text and reference on statistical modeling, which includes brief introductory and review material, and then proceeds through regression and modeling for the first half, and through ANOVA and Experimental Design in the second half.
Abstract: Applied Linear Statistical Models 5e is the long established leading authoritative text and reference on statistical modeling. The text includes brief introductory and review material, and then proceeds through regression and modeling for the first half, and through ANOVA and Experimental Design in the second half. All topics are presented in a precise and clear style supported with solved examples, numbered formulae, graphic illustrations, and "Notes" to provide depth and statistical accuracy and precision. The Fifth edition provides an increased use of computing and graphical analysis throughout, without sacrificing concepts or rigor. In general, the 5e uses larger data sets in examples and exercises, and where methods can be automated within software without loss of understanding, it is so done.

10,747 citations

Book
01 Jan 1921
TL;DR: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets as mentioned in this paper.
Abstract: In Risk, Uncertainty and Profit, Frank Knight explored the riddle of profitability in a competitive market profit should not be possible under competitive conditions, as the entry of new entrepreneurs would drive prices down and nullify margins, however evidence abounds of competitive yet profitable markets. To explain this seeming paradox, Knight uncovers the distinction between calculable risk and essentially unknowable uncertainty. Knight argued that risk stems from repeated events, which therefore allow probabilities to be calculated and factored into decisions, as for instance insurers do. Uncertainty however, stems from events that are unpredictable and as such cannot be prepared against. According to Knight, it is the interplay between risk and uncertainty on the one hand and competition between incumbent and new entrepreneurs that accounts for the enormous variation in profitability across firms and, for the same firms, over time. His insights on the sources of profit have been instrumental in shaping modern economic theory and to the development of a useful understanding of probability. This New Edition has been typeset with modern techniques and contains a newly compiled Index of important topics. It has been painstakingly proofread to ensure that it is free from errors and that the content is faithful to the original.

10,309 citations