Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance

Abstract

The primary purpose of this article is to clarify the nature of the entrepreneurial orientation {EO) construct and to propose a contingency framework for inveBtigating the relationship between EO and firm periormance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.The authors wish lo thank AMR's reviewers

Tweaking the entrepreneurial orientation–performance relationship in family firms: the effect of control mechanisms and family-related goals

“…The effect of Autonomy shows that also family firms perform superior in terms of financial performance when being able to act autonomously, without being restricted by stakeholder interests. In addition, these results for the direct effects can be interpreted as a confirmation of the multidimensionality of the EO-construct (Lumpkin and Dess 1996), which states that not all EO dimensions have to be present for an entrepreneurial attitude to exist. Furthermore, results show that entrepreneurial attitudes and their effect on performance are highly complex phenomena in family firms.…”

“…Covin and Slevin 1989), constituting a unidimensional construct where all dimensions have to be present for an EO to exist, or of the five dimensions, adding Autonomy and Competitive Aggressiveness (Lumpkin and Dess 1996), constituting a multidimensional construct where not all dimensions have to be present simultaneously for an EO to exist. This multidimensional EO construct is characterized by ''a propensity to act autonomously, a willingness to innovate and take risks, and a tendency to be aggressive toward competitors and proactive relative to marketplace opportunities'' (Lumpkin and Dess 1996, p. 137).…”

“…Competitive Aggressiveness is divergently discussed: While family firms aim at a positive reputation and image in society (Jaskiewicz et al 2015) and therefore compete less aggressively, they strongly defend their family business when being threatened (Gómez-Mejía et al 2007). Due to the divergent and scattered findings for the respective EO dimensions and their effects on performance, we believe that it is necessary to test the complete Tweaking the entrepreneurial orientation-performance… multidimensional EO-performance relationship (Lumpkin and Dess 1996) for a more integrated understanding.…”

“…To determine these attitudes, the entrepreneurial literature foremost applies the entrepreneurial orientation (EO) construct and its widely accepted positive relationship to financial firm performance (Lumpkin and Dess 1996;Miller 1983;Wales et al 2013).…”

Global Entrepreneurship and Market-Driven Management

“…Both entrepreneurship and international business are fields of research which have seen an increasing number of studies during the last decade Oviatt, 1997, 2000;Zahra and Garvis, 2000). Entrepreneurship and international business are strictly interrelated because entering and venturing in foreign markets are viewed as entrepreneurial activities for the firm (Lumpkin and Dess, 1996;Zahra and George, 2002).…”