The Epistemology of Entrepreneurial Responsible Orientation (ERO): Theory, Conceptualization, and Future Research

Abstract

Organizations are constantly searching for new pathways to ensure survival and sustainability in a highly dynamic and competitive environment. Against this background, the present study aims to propose a strategic framework considering the crucial role of small businesses and entrepreneurship for sustainable economic, social, and environmental development. This paper employed a selective-intensive literature review technique to review and evaluate extant sustainability orientation (SO) literature from multiple strategic orientation paradigm. In addition, drawing from the theoretical underpinnings of resource complementarity and configuration perspective, this study proposes a configuration of sustainability orientation (SO), entrepreneurial orientation (EO), and market orientation (MO) in the era of sustainable development. The key finding of this paper is the development of a higher-order dynamic capability, that is, Entrepreneurial Responsible Orientation (ERO). ERO is proposed as an entrepreneurial strategic framework that integrates three distinct but complementary elements (i.e., sustainability, entrepreneurial, and marketing) under the umbrella of strategic orientation that drives superior sustainable firm performance. Moreover, we put forward the future research agenda by developing several potential research questions, thus, the findings of this study will serve as a springboard to extend the knowledge base in this field of research. This paper provides an integrated framework in the contexts of small businesses and entrepreneurship by utilizing the combination of the theoretical and conceptual development approaches. The proposed framework, if implemented successfully, has the potential to drive sustainable performance of the small firms particularly, and sustainable development of the country, generally.

Unlocking the complementary effects of multiple strategic orientations on firm performance: an interplay of entrepreneurial, sustainability and market orientation

“…Moreover, in response to the recent calls to examine how and when SO leads to firm performance (e.g. Iqbal and Khizar, 2022), our study resulted in some key contributions in this regard. The findings of this study suggest that the firm performance effects of deploying SO alone (β 5 0.13) are far less than the performance effects of joint implementation of SO with EO (β 5 0.42) or MO (β 5 0.48).…”

Entrepreneurial responsible orientation in small and medium businesses: the case of Pakistan

“…Second, this study advances the literature by configuring ERO typology in exemplar sustainability-oriented SMEs. The ERO typology opens the discussion regarding its relationship with performance, antecedents, outcomes and potential contingencies that may affect these relationships (Iqbal and Khizar, 2022). Third, another key implication that can be drawn from the findings of this study is that personal factors (e.g.…”

HRM solutions: a framework for small business owners to manage industrial relations while facilitating labour unionisation mitigation

“…Small business owners must recognise that one size does not fit all and do fare well in the context of effectively developing a team of loyal employees. The work of Blau (1968) gained relevance through the social exchange theories of Homans (1950Homans ( , 1958Homans ( , 1961 and Thibaut and Kelley (1959). Hence, social exchange theory, embedded in the research conducted by Bos-Nehles and Meijerink (2018), cultivates relational approaches to integrate social exchange perspectives HRM solutions for small businesses (Kulik, 2022).…”

“…Currently, social exchange theory remains prominent in the field of human resource management (Cropanzano et al , 2017). Therefore, this theory has been generalised for a small business management context for addressing industrial relations within small and medium sized enterprises (SMEs) (Iqbal and Khizar, 2022; Newman et al , 2022; Zoller and Muldoon, 2019). Small business owners must recognise that one size does not fit all and do fare well in the context of effectively developing a team of loyal employees.…”

“…Similarly, industrial relations represent employee compensation and the importance of fair labour processes (Lipsky et al , 2020; Losey et al , 2005). At the same time, the conceptual framework for HRM solutions for small businesses includes many factors for labour unionisation mitigation (Iqbal and Khizar, 2022). The conceptual framework outlines how small business owners should departmentalise essential aspects of their strategy for mitigating labour unionisation.…”