Entrepreneurial Orientation in Different Environmental Settings: a Comparative Cross-Country Study

Abstract

While a significant body of literature has explored the link between entrepreneurial orientation (EO) and firm performance, most research has been based in single country settings without taking into account crosscountry differences. In this study, we investigate the relationship between entrepreneurial orientation and firm performance and the moderating role of environmental context in a developed and an emerging market. Our analysis of 104 Russian and 117 Finnish SMEs suggests that in a developed market context the EO dimensions of innovativeness, proactiveness and risk-taking are positively and directly associated with firm performance, while in an emerging market the relationship is moderated by the dynamic and hostile external environment. The specifics of national culture and different stages of institutional development may explain the differences in the way entrepreneurial orientation dimensions relate to firm performance.