Business group affiliation and entrepreneurial orientation: Contingent effect of level of internationalization and firm’s performance

Purkayastha, Anish; Gupta, Vishal K.

doi:10.1007/s10490-022-09809-w

Cited by 11 publications

(9 citation statements)

References 132 publications

(175 reference statements)

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“…This decision is consistent with the criterion of Hair et al (2022) that all indicators not meeting the required benchmark can be deleted from the measurement model. Although it can be considered a study limitation, several studies measure EO as a unidimensional construct (Aftab et al , 2022; Bouguerra et al , 2022; Purkayastha and Gupta, 2022).…”

Section: Methodsmentioning

confidence: 99%

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

Correia

Dias

Teixeira

et al. 2022

EBR

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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.

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Section: Methodsmentioning

confidence: 99%

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

Correia

Dias

Teixeira

et al. 2022

EBR

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“…Such effects do not necessarily occur linearly. For example, at larger EM firms that are part of business groups, entrenchment effects occur (Purkayastha and Gupta, 2022). However, entrepreneurial orientation may still contribute to organizational performance and further internationalization to the extent that larger EM firms actively pursue internationalization strategies.…”

Section: Strategic Capabilities Of Emerging Market Multinational Ente...mentioning

confidence: 99%

Becoming a Multilatina: strategic capabilities as necessary conditions for the internationalization of Latin American firms

Hermans,

Borda,

Newburry

et al. 2023

EBR

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Purpose This study aims to challenge the generic interpretation of Multilatinas as Latin American firms that have been able to internationalize because of highly competitive strategic capabilities. The authors test whether capabilities that international business researchers commonly associate with internationalization are necessary at different stages of the internationalization process to better understand the extent to which emerging market (EM) firms need to develop them. Design/methodology/approach International business research suggests a positive association between strategic capabilities and firm internalization. However, it remains unclear what specific capabilities are necessary and when they are necessary. These questions are particularly important in the context of the internationalization of firms from emerging economies, such as Latin America. The authors apply necessary condition analysis (NCA) on a sample of Latin American firms at different internationalization stages to test what strategic capabilities represent necessary conditions for becoming a Multilatina. Findings The findings suggest that only a few strategic capabilities are necessary for Latin American firms to become “Multilatinas”. While entrepreneurial orientation and marketing and sales capabilities represent necessary conditions, EM firms may internationalize even though other capabilities are developed to a lesser extent. The authors reflect on how shifts in local markets and technology drive the emergence of different types of Multilatinas. Research limitations/implications Measuring strategic capabilities across multiple EM firms implies a risk that firm-specific aspects are not fully captured. While the authors focused on the comparative competitive strength of capabilities and took great care to minimize measurement error, the authors acknowledge possible bias. Also, while NCA does not require a minimum sample size, findings from our sample of firms from four countries may not generalize to the region or other EMs. Originality/value As a relatively new statistical technique, the use of NCA has spread rapidly. To the best of the authors’ knowledge, the linkage between organizational capabilities and firm internationalization has not been tested from a necessary conditions perspective yet. The reflections on the “Multilatina” concept based on the notion of EM firms as configurations of strategic capabilities inform current debates on EM multinational enterprises.

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“…Hence, proactiveness is measured by using the percentage of profits reinvested IJOEM by the firms each year. The percentage of annual earnings reinvested within the company or retained earnings is a common proxy used by several studies (Miller and Le Breton-Miller, 2011;Purkayastha and Gupta, 2022). The aggregated investment is a proportion of annual retained earnings.…”

Section: Sample and Data Collectionmentioning

confidence: 99%

Reverse innovations bridging the gap between entrepreneurial orientation and international performance

Hashmi

Ooms

Voinea

et al. 2023

IJOEM

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PurposeThis paper aims to elucidate the relationship between entrepreneurial orientation, reverse innovation and international performance of emerging economy multinational enterprises (EMNEs).Design/methodology/approachThe authors analyze archival data of Chinese limited companies between 2010 and 2016, including 11,230 firm-year observations about 1708 firms. In order to test the study’s mediation hypotheses, the authors apply an ordinary least square (OLS) regression.FindingsThe authors find evidence that the entrepreneurial orientation of EMNEs has a positive effect on reverse innovations. Furthermore, the authors find positive effects of reverse innovation on the international performance of EMNEs. This pattern of results suggests that the relationship between entrepreneurial orientation and international performance is partially mediated by reverse innovation.Practical implicationsThe study’s findings help managers in EMNEs to promote reverse innovation by building and using their entrepreneurial orientation. It also helps them to set out and gauge the chances of success of their internationalization strategies. The findings also hold relevance for firms in developed economies as well, as they may understand which emerging economy competitors stand to threaten their positions.Originality/valueThe strategic role of reverse innovations – i.e. clean slate, super value and technologically advanced products originating from emerging markets – has generated considerable research attention. It is clear that reverse innovations impact the international performance of EMNEs. Yet how entrepreneurial orientation influences international performance is still underexplored. Thus, the current study clarifies the mechanism by examining and testing the mediating role of reverse innovation among the entrepreneurial orientation–international performance link.

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Business group affiliation and entrepreneurial orientation: Contingent effect of level of internationalization and firm’s performance

Cited by 11 publications

References 132 publications

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

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

Becoming a Multilatina: strategic capabilities as necessary conditions for the internationalization of Latin American firms

Reverse innovations bridging the gap between entrepreneurial orientation and international performance

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