Empirical Investigations Into Firm Technology Orientation and Entrepreneurial Orientation

Abstract

Entrepreneurship and its relation with technology is studied extensively within organizations and often conceptualized as entrepreneurial orientation (EO) and technology orientation (TO). This paper empirically tests the relationship between these orientations and firm performance by measuring how environmental dynamism and hostility may influence the EO–TO relationship. After providing an overview of the relevant variables, data are collected from 229 firms in Johannesburg, South Africa. Statistical analyses are employed to test the hypothesized associations. Findings reveal robust reliability and validity of scales used, and significant correlations between EO and environment hostility and dynamism are reported.

Technology Orientation and Effectuation – Links to Firm Performance in the Renewable Energy Sector of South Africa

“…This is particularly relevant in emerging economies where there is great potential for firms to import and adapt technologies developed in industrialised countries [44]. For firms in emerging markets the rising trend towards globalisation presents multiple opportunities to adopt a technology posture or orientation that can provide the necessary competitive advantage to compete globally [43].…”

“…Additionally, even though firms create technologies, rival firms might readily exploit these technologies, with the consequence that no benefits are harvested by TO firms [43].There is even uncertainty about whether the results expected from the technology investment will really be achieved [19]. These difficulties surrounding the adoption and effective use of technology have highlighted the importance of uncertainty and the relevance of non-predictive strategy, with numerous researchers questioning the utility of emphasising prediction and/or adapting to exogenously-given circumstances [45].…”

Product innovation of private health insurers in South Africa and the impact of entrepreneurial orientation

“…The literature confirms three dimensions that characterise an entrepreneurial orientation: innovativeness, risk taking and proactiveness (Morris et al, 2008;Urban & Barreira, 2010). According to Dess and Lumpkin (2005), prior research has explored the direct relationship between EO and performance (Rauch, Wiklund, Lumpkin & Freeze, 2004) as well as the sustainability of that relationship (Wiklund, 1999).…”

“…The concept of EO incorporates organisational-level processes, practices and decision-making styles of innovative organisations (Lumpkin & Dess, 1996;Urban & Barreira, 2010). The strength of an organisation's EO can have a positive effect on performance (Green, Covin & Slevin, 2008;Morris & Sexton, 1996;Wiklund & Shepherd, 2005;Zahra & Covin, 1995).…”

“…Furthermore, Dess and Lumpkin (2005) indicate that exploring relationships among the individual dimensions of EO and performance is superior to considering EO as a onedimensional construct and that the individual dimensions of EO were more robust predictors of organisational growth than a summated onedimensional EO construct. According to Urban and Barreira (2010) the EO concept is best understood as a complex mix of personal and situational factors, and in addition to individual and organisational differences, forces operating within other, larger cultural contexts also determine levels of EO (Aloulou & Foyolle, 2005). Therefore, organisations with EO typically out-perform other similar organisational types with less EO, especially in volatile times (Knight, 1997;Urban & Barreira, 2010).…”