Chief Executive Officers Entrepreneurial Orientation, Dynamic Capabilities, and Firm Performance: The Moderating Effect of the Manufacturing Industry

Abstract

This study explores the implications of CEO entrepreneurial orientation for firm performance through corporate dynamic capabilities. It explores the moderating effects of firm industry type on the above indirect effect. Based on 188 matched sample data collected from vice chief executive officers (CEOs) of Chinese firms, this study found that CEO entrepreneurial orientation was positively related to corporate dynamic capabilities and firm performance and that corporate dynamic capabilities mediated the positive relationship between CEO entrepreneurial orientation and firm performance. Firm industry type moderated the direct effect of CEO entrepreneurial orientation on corporate dynamic capability, and the indirect effect of CEO entrepreneurial orientation on firm performance through corporate dynamic capability. Both direct and indirect effects were stronger in manufacturing enterprises. The findings enrich the CEO entrepreneurial orientation literature by extending the existing knowledge on its underlying mechanism and its impact on firm performance, as well as its boundary conditions.

Understanding green supply chain information integration on supply chain process ambidexterity: The mediator of dynamic ability and the moderator of leaders’ networking ability

“…Thirdly, it can clarify the boundary conditions of supply chain dynamic capability to improve supply chain process ambidexterity, namely, the moderator of networking ability. Liu et al (2021) pointed out that exploring the process mechanism of performance output from both individual and organizational levels is more consistent with the enterprise core competence transition process. Therefore, exploring the realization mechanism of supply chain process ambidexterity is reasonable from the perspectives of leadership factors and dynamic capability.…”

Is It Okay to Study Entrepreneurial Orientation (EO) at the Individual Level? Yes!

“…Indeed, because many EO studies are conducted with individual top managers existing within a team of top managers, it is not always easy to disaggregate whether the individuals reported their own beliefs and behaviors or those of the collective TMT. Indeed, there is a small but growing body of literature, nominally studying CEO-EO (e.g., Keil et al, 2017; Liu et al, 2021), that blurs the line by making firm and individual EO synonymous and linking them to firm-level outcomes.…”

“…Ind.EO could be very useful in understanding how it influences both the presence of and variations within the entrepreneurial management and leadership styles. Interestingly, there has been a recent trend of those seeking to blur the line between firm EO and the Ind.EO of the CEO (Liu et al, 2021; Wang, Jiang, et al, 2021). Deeper study into this is inevitable and it will be especially useful for understanding Ind.EO research inside the C-suite, particularly with the CEO.…”

Joint effect of entrepreneurship and dynamic capabilities on firm performance: an empirical investigation among ICT-SMEs

“…In addition, the existing literature suggests that entrepreneurial orientation is enacted and strengthened by various individuals within the organization (Liu et al, 2021). Previous studies have specifically underscored the crucial role of entrepreneurial leadership in fostering entrepreneurial orientation (Nguyen et al, 2021).…”