In order to be able to seize the opportunities that a dynamic operating environment opens up, entrepreneurial firms have to reconfigure their existing asset base and processes. This study explores the effect of an entrepreneurial orientation and a firm's reconfiguring capabilities on international performance by using survey data from 217 manufacturing and service organizations. Our findings indicate that a firm's entrepreneurial orientation and reconfiguring capabilities have an effect on its international performance and provide empirical support for the dynamic capability view of the firm. Entrepreneurial behavior combined with organizational reconfiguring capabilities constitutes a potential source of competitive advantage. Copyright Springer Science + Business Media, Inc. 2005entrepreneurial orientation, dynamic capabilities, international performance,
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AbstractPurpose -The purpose of this paper is to shed light on the mechanisms by which entrepreneurialoriented behaviours (EOB) enhance international business performance. In so doing, the authors demonstrate that different dimensions of EOB may need to be emphasized or dampened, depending on the environmental conditions facing the firm. Design/methodology/approach -A survey of 783 Finnish exporters is undertaken, and the relationships between the dimensions of EOB and business performance are assessed. Findings -It is found that Kirznerian manifestations of EOB have stronger positive relationships with export profits when markets are relatively stable, whereas Schumpeterian manifestations of EOB have stronger positive relationships with export profits when markets are more dynamic.Research limitations/implications -The study has implications for researchers studying multidimensional strategic orientations. The approach adopted is novel, in that instead of adopting a fully aggregated or fully disaggregated approach to the study of a strategic orientation, the authors use a theoretically derived partial aggregation approach. As a result, EOBs are grouped into two kinds, and the latter are shown to behave differently with respect to relationships with performance outcomes. The study limitations include single source data and its cross-sectional design. Practical implications -When markets are relatively stable, businesses need to emphasize the Kirznerian manifestations of EOB (i.e. display high levels of competitive aggressiveness and proactiveness) and downplay Schumpeterian manifestations of EOB (i.e. reduce innovativeness, risk taking and autonomy). However, in highly dynamic markets, managers should focus on Schumpeterian manifestations of EOB at the expense of Kirznerian EOB. Originality/value -This paper introduces Schumpeterian and Kirznerian entrepreneurial behavior in an international marketing context, and analyses the effects of these activities on international performance under varying levels of environmental turbulence.
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