Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact

Abstract

Applying information technology capabilities (ITC) to business processes is critical in the current data and information age. However, various bottlenecks and barriers restrict the adoption of ITC. To address these obstacles, fostering an entrepreneurial orientation (EO) can be beneficial. Drawing on the dynamic capabilities view, this study develops and tests a model that empirically analyzes how EO influences the adoption of ITC. The proposed model also assesses the separate and joint effects of EO and ITC on firm performance (FP). The research hypotheses were tested using a survey of 157 Chilean firms, and the PLS-SEM method was applied. The findings indicate that EO promotes the development of ITC and that the synergistic relationship between the two positively affects FP. These findings provide valuable insight for managers in terms of aligning their strategic approach with technological capabilities to enhance their company’s success.