This paper reports the results of a study designed to investigate the effective strategic responses to environmental hostility among small manufacturing firms. Data on environmental hostility, organization structure, strategic posture, competitive tactics, and financial performance were collected from 161 small manufacturers. Findings indicate that performance among small firms in hostile environments was positively related to an organic structure, an entrepreneurial strategic posture, and a competitive profile characterized by a long‐term orientation, high product prices, and a concern for predicting industry trends. In benign environments, on the other hand, performance was positively related to a mechanistic structure, a conservative strategic posture, and a competitive profile characterized by conservative financial management and a short‐term financial orientation, an emphasis on product refinement, and a willingness to rely heavily on single customers.

This article outlines a conceptual model of entrepreneurship as an organizational-level phenomenon. The model is intended to depict the organizational system elements that relate to entrepreneurial behavior among larger, established firms, but may also be applicable in varying degrees to many smaller firms. Entrepreneurship is described as a dimension of strategic posture represented by a firm's risk-taking propensity, tendency to act in competitively aggressive, proactive manners, and reliance on frequent and extensive product innovation. The proposed model delineates the antecedents and consequences of an entrepreneurial posture as well as the variables that moderate the relationship between entrepreneurial posture and firm performance. The advantages of a firm-behavior perspective on entrepreneurship are discussed, as are the theoretical and managerial implications of such a perspective.

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Empirical research has not consistently identified antecedents for predicting post‐acquisition performance. We employ meta‐analytic techniques to empirically assess the impact of the most commonly researched antecedent variables on post‐acquisition performance. We find robust results indicating that, on average and across the most commonly studied variables, acquiring firms' performance does not positively change as a function of their acquisition activity, and is negatively affected to a modest extent. More importantly, our results indicate that unidentified variables may explain significant variance in post‐acquisition performance, suggesting the need for additional theory development and changes to M&A research methods. Copyright © 2003 John Wiley & Sons, Ltd.

This article introduces the Special Issue of Entrepreneurship Theory and Practice on the topic of Entrepreneurial Orientation (EO). In addition to overviewing the preparation and structure of the Special Issue, this article addresses various substantive matters pertinent to the continuing development of EO theory and research including (1) the issue of whether EO is more defensibly conceived of as a dispositional or behavioral construct; (2) the reasons why EO is regarded by some as an "annoying construct," and what might be done about it; (3) the reasons why the concept of EO fills an important gap in the literature on firm-level entrepreneurship; (4) a proposal that EO theory and research proceed along two concurrent paths corresponding the unidimensional and multidimensional conceptualizations of the construct; (5) a review of EO measurement issues focused on why, in particular, it isproblematic to conceive of and measure EO as a formative construct; and (6) a brief consideration of both marginal-value and high-potential topic areas for future EO theory and research.

57This research examined the effects of three strategic process variables-strategic decisionmaking participativeness, strategy formation mode, and strategic learning from failure-on the entrepreneurial orientation (EO)-firm sales growth rate relationship. Results based on a sample of 110 manufacturing firms indicated a positive effect of EO on sales growth rate. Moreover, the relationship between EO and sales growth rate was more positive among firms that employ autocratic decision making and that exhibit an emergent strategy formation process. Perceptions of proficiency at learning from strategic mistakes differentially affected the growth rates of firms at different ends of the EO continuum, but in manners inconsistent with the hypothesized relationship.

This paper presents a theoretical exploration of the construct of corporate entrepreneurship. Of the various dimensions of firm-level entrepreneurial orientation identified in the literature, it is argued that innovation, broadly defined, is the single common theme underlying all forms of corporate entrepreneurship. However, the presence of innovation per se is insufficient to label a firm entrepreneurial. Rather, it is suggested that this label be reserved for firms that use innovation as a mechanism to redefine or rejuvenate themselves, their positions within markets and industries, or the competitive arenas in which they compete. A typology is presented of the forms in which corporate entrepreneurship is often mani• fested, and the robustness of this typology is assessed using criteria that have been proposed for evaluating classificational schemata. Theoretical linkages are then drawn demonstrating how each of the generic forms of corporate entrepreneurship may be a path to competitive advantage.

This article explores how the concept of entrepreneurial orientation (EO) has been portrayed and assessed in prior research. The challenges and decision criteria associated with formative versus reflective measurement approaches are reviewed. It is argued that, as a latent construct, EO exists apart from its measures and that researchers are free to choose whichever measurement approach best serves their research purposes, recognizing that unidimensional versus multidimensional EO measurement models are consistent with fundamentally different conceptualizations of the EO construct. Recommendations are offered regarding potentially appropriate formative and reflective measures of EO.