Entrepreneurial orientation (EO) has received substantial conceptual and empirical attention, representing one of the few areas in entrepreneurship research where a cumulative body of knowledge is developing. The time is therefore ripe to document, to review, and to evaluate the cumulative knowledge on the relationship between EO and business performance. Extending beyond qualitative assessment, we undertook a meta-analysis exploring the magnitude of the EO-performance relationship and assessed potential moderators affecting this relationship. Analyses of 53 samples from 51 studies with an N of 14,259 companies indicated that the correlation of EO with performance is moderately large (r = .242) and that this relationship is robust to different operationalizations of key constructs as well as cultural contexts. Internal and environmental moderators were identified, and results suggest that additional moderators should be assessed. Recommendations for future research are developed.
The study meta-analytically integrates results from three decades of human capital research in entrepreneurship. Based on 70 independent samples (N = 24,733), we found a significant but small relationship between human capital and success (r c = .098). We examined theoretically derived moderators of this relationship referring to conceptualizations of human capital, to context, and to measurement of success. The relationship was higher for outcomes of human capital investments (knowledge/skills) than for human capital investments (education/ experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for the dependent variable size compared to growth or profitability. Findings are relevant for practitioners (lenders, policy makers, educators) and for future research. Our findings show that future research should pursue moderator approaches to study the effects of human capital on success. Further, human capital is most important if it is task-related and if it consists of outcomes of human capital investments rather than human capital investments; this suggests that research should overcome a static view of human capital and should rather investigate the processes of learning, knowledge acquisition, and the transfer of knowledge to entrepreneurial tasks.
Demonstrating causal relationships has been of particular importance in organizational stress research. Longitudinal studies are typically suggested to overcome problems of reversed causation and third variables (e.g., social desirability and negative affectivity). This article reviews the empirical longitudinal literature and discusses designs and statistical methods used in these studies. Forty-three longitudinal field reports on organizational stress were identified. Most of the investigations used a 2-wave panel design and a hierarchical multiple regression approach. Six studies with 3 and more waves were found. About 50% of the studies analyzed potential strain-stressor (reversed causation) relationships. In about 33% of the studies there was some evidence of reverse causation. The power of longitudinal studies to rule out third variable explanations was not realized in many studies. Procedures of how to analyze longitudinal data are suggested. Occupational stress research has been quickly developing during the last two decades. This has led to many excellent studies-many of them longitudinal-that produced a wide range of knowledge in this field. However, even though this development is welcomed, we argue that the power of longitudinal designs has not yet been fully realized. This is because designs and analyses of the stress investigations are far from optimal. Thus, the review of the literature in this article on longitudinal stress research from a methodological angle is supposed to show the pitfalls and difficulties in design and analysis strategies but should also point out good examples of longitudinal research. Obviously, we are not the only ones who present a critique of stress research (
This paper contributes to the discussion on contingencies of process innovations by focusing on and introducing organizational-level constructs of climate for initiative and psychological safety. We argue that process innovations, defined as deliberate and new organizational attempts to change production and service processes, need to be accompanied by climates that complement the adoption and implementation of such innovations. Our study of 47 mid-sized German companies examines the relation between process innovations, climates for initiative and psychological safety, and firm performance. Results show that climates for initiative and psychological safety were positively related to two measures of firm performance-longitudinal change in return on assets (holding prior return on assets constant) and firm goal achievement-and moderated the relation between process innovations and firm performance.
The authors argue that a high-organizational error management culture, conceptualized to include norms and common practices in organizations (e.g., communicating about errors, detecting, analyzing, and correcting errors quickly), is pivotal to the reduction of negative and the promotion of positive error consequences. Organizational error management culture was positively related to firm performance across 2 studies conducted in 2 different European countries. On the basis of quantitative and qualitative cross-sectional data from 65 Dutch organizations, Study 1 revealed that organizational error management culture was significantly correlated with both organizational goal achievement and an objective indicator of economic performance. This finding was confirmed in Study 2, using change-of-profitability data from 47 German organizations. The results suggest that organizations may want to introduce organizational error management as a way to boost firm performance.
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