Dominant Logic and Entrepreneurial Firms‘ Performance in a Transition Economy

Abstract

Dominant logic is the manner in which firms conceptualize and make critical resourceallocation decisions, and over time develop mental maps, business models, and processes that become organizational recipes. This study compares and contrasts the dominant logic of Polish entrepreneurial firms. We find evidence that a dominant logic characterized by external orientation, proactiveness, and simplicity of routines significantly influences the performance of entrepreneurial firms in this emerging economy. These dominant logic characteristics of high performers serve as a key intangible resource in transition economies that are characterized by the absence of strong institutions and resource constraints. Future research in this critical domain should include how dominant logic needs in transition economies evolve over time as the institutional environment matures and market mechanisms become more solidified.

Impact of absorptive capacity and dominant logic on ERP assimilation in Chinese firms

“…In the result, of that firms become "expert," in strategic management, more multifarious, and more effective in proceedings (Dane & Pratt, 2007). Through organizational context, it seems that capitalist managers can evoke failures, and effectively learn from them, these managers more effectively develop mind-set which leads to effective decision making (Obloj, 2010b). For successful adaption of opportunities, threats, and changes in the environment firms have to look towards their environment (Jackson & Dutton,86 F. Khan, Z. Xuehe, F. Atlas, K. Ullah Khan, A. Pitafi, M. Usman Saleem, S. Khan 1988; Keh, Foo, & Lim, 2002).…”

“…Another attribute, of dominant logic is whether the firms look towards the environment as an opportunity or threat in transitional economy. On the contrary, the orientation of threats may guide to a more self-protective, stiff responses Staw, Sandelands, & Dutton (1981), in the result that actor's abilities to ratify their flexible surroundings is limited, it can result in damage to the performance (Obloj, 2010b). Improvement of routines and normal working process involved in organizational learning and adaptation (Van De Ven & Poole, 1995).…”

“…Talke (2007) argues that pro-activeness is not only seeking the opportunity, but also expectation of future requirements, and 'exploiting emerging opportunities' (Obloj, 2010b). Obloj (2010) argued that pro-activeness in capitalist firms in transition economies should be important for at least two reasons.…”

“…Obloj (2010a) argued that in emerging economy dominant logic plays an important role. In particular, socialist economic system transferred to market economies to examine the values as intangible resource of dominant logic, on other hand there is not well developed support for tangible resources (Bruton, Ahlstrom, & Obloj, 2008;Kolvereid & Obloj, 1994;Meyer & Peng, 2005).…”

Theoretical Foundations

“…3 The boundaries of the relevant organizational fields may be defined in many different ways. In emerging economies, such organizational fields may pertain to peer groups of firms in similar types of ownership, such as SOEs (Bruton et al, 2015, Filatotchev et al, 2000, business groups (Estrin, Poukliakova, & Shapiro, 2009c;Khanna & Yafeh, 2007), and entrepreneurial start-ups (Aidis et al 2008;Obloj, Obloj, & Pratt, 2010;Peng, 2001;Puffer et al, 2010). Other scholars have focused on network relationships as the critical linkages between organizations (Batjargal, 2007;Musteen, Datta, & Francis, 2014;Prashantham & Dhanaraj, 2010;Sun et al, 2012), which suggests that a firm's network may represent its relevant organizational field.…”