Building competitive advantages and business success: the role of learning orientation, reward systems and entrepreneurial orientation

Abstract

Purpose The complexity of the firm’s external environment, with its constant changes, forces managers to develop novel strategies that can meet new strategic needs. The purpose of this study is to examine the role of reward systems (RSs) in strategic management, as well as their relationship to learning and entrepreneurial orientation (EO), commonly referred to as the driving force behind growth, competitive advantages (CAs) and improved performance. It also focuses on the study of the relationship between EO and business performance (BP), the introduction and testing of the possible antecedents of this relationship and potential mediating factors. Design/methodology/approach A conceptual model was tested on a sample of 1,190 Portuguese firms using a structural equation model. Findings It is shown for the first time that learning orientation (LO) is an antecedent of the RSs and, subsequently, of EO. Additionally, the CAs of differentiation and cost leadership play a mediating role in the relationship between EO and BP. Furthermore, RSs are also a driving force behind both CAs. Originality/value This study makes several empirical and theoretical contributions, addressing the gap in the literature about the role of RSs in strategic management. It tests the relationship between LO and the firm’s performance by taking the mediating effects of RSs, EO and CAs into account. Additionally, we discuss LO as an antecedent strategic variable of human resources practices, in particular, RSs. Finally, we broaden the scope of our research by examining these issues in the context of Portuguese SMEs from different industries.

The effect of entrepreneurial leadership traits on corporate sustainable development and firm performance: a resource-based view

“…And on the other hand, there is no support for sub- H1a to H1d , suggesting that the influence of other entrepreneurial traits on CSD and firm performance does not apply during challenging times such as the pandemic. Hence, this study’s findings extend Correia et al ’s (2023) conclusions by revealing that entrepreneurial orientation does influence firm performance in terms of two entrepreneurial leadership skills: creativity, as well as passion and motivation. Moreover, such findings further support the indications of Correia et al (2023), according to whom entrepreneurial leadership style significantly influences CSD.…”

“…Hence, this study’s findings extend Correia et al ’s (2023) conclusions by revealing that entrepreneurial orientation does influence firm performance in terms of two entrepreneurial leadership skills: creativity, as well as passion and motivation. Moreover, such findings further support the indications of Correia et al (2023), according to whom entrepreneurial leadership style significantly influences CSD. In other words, an entrepreneurial leadership style gets shaped by passion and motivation entrepreneurial leadership skills as a requisite strategic resources for achieving firm performance, when viewed from the lens of the resource-based view perspective (Silvestri et al , 2023; Ravichandran and Lertwongsatien, 2005).…”

“…For example, and considering that the possession of the necessary entrepreneurial leadership skills shape their leadership style (Iftach and Shapira-Lishchinsky, 2023; Sousa and Rocha, 2019), Kafetzopoulos and Gotzamani (2022) revealed that entrepreneurial leadership style significantly influences a firm’s economic sustainability. Similarly, Correia et al (2023) revealed that entrepreneurial orientation affects firm performance, with competitive advantage strategies mediating. However, there is scant research focused on the impact of specific entrepreneurial leadership skills on CSD, as the primary objective of this view is to understand firm performance through sustained competitive advantage (Barney, 1991; Schlosser, 2017).…”

Mediation of learning orientation on market orientation and business performance: evidence from Brazilian Small and Medium Enterprises (SMEs)

“…The complexity of the business environment has forced SME managers to create new strategies to serve customers (Correia et al, 2023). SMEs contribute to the regional economy and generate employment, income and economic development (Phorncharoen, 2020;Wahyono and Hutahayan, 2021;Haddoud et al, 2021a, b).…”

“…The complexity of the business environment has forced SME managers to create new strategies to serve customers (Correia et al. , 2023).…”