The Impact of Entrepreneurial Orientation, Technological Capability, and Consumer Attitude on Firm Performance: A Multi‐Theory Perspective

Abstract

Despite the maturing entrepreneurial orientation literature, limited advance has occurred in the theoretical aspect of entrepreneurial orientation-firm performance relationship, and wideranging empirical investigations are few. The authors address these concerns by testing a comprehensive model and by extending the theoretical boundary. Specifically, drawing on dynamic capability theory, core competence perspective, and consumer theories, we argue that technological capability is central for growth and financial performance of an entrepreneurially oriented firm. We introduce a construct called consumer attitude dynamism. We reason that this variable influences the growth of entrepreneurial firms. Our theory and empirical results primarily contribute to the entrepreneurship literature.

Entrepreneurial orientation and small firm performance: The moderating role of environmental hostility

“…We view EO as such a resource that could help firms to sustain their operations and survive challenges. Numerous studies have confirmed this expectation that EO enhances firms performance (Adomako, 2018;Anderson & Eshima, 2013;Alvarez-Torres, Lopez-Torres, & Schiuma, 2019;Gupta & Batra, 2015;Kallmuenzer et al, 2018;Kreiser, Anderson, Kuratko, & Marino, 2019;Poudel et al, 2018;Wiklund & Shepard, 2005;Yoon & Solomon, 2017). Although, exceptions still exist, as some studies observed contrary findings (Frank, Kessler, & Fink, 2010) that EO does not necessarily translate into firms' high performance.…”

“…All the scales utilised in this study were all adapted from previous researches: the Performance scale from Poudel et al (2018), the EO scale by Covin and Slevin (1989), and the Environmental Hostility scale from Miller and Friesen (1982). However, in recognition of the differences in context, slight adjustments were made in the statements of questions in some scales to suit the context of this study.…”

“…For our study, we adapted and adopted the reflective performance scale -as created by Poudel et al (2018) -which consists of four (4) regular financial performance indices: Return on Assets (ROA), Return on Investments (ROI), net profits, and profits to revenue ratio. The scale assessed executives' perceptions of their firm's performance against the performance of their key competitors in industry.…”

“…High returns on assets, investments, and margins of net profits are key indicators of a successful firm (Poudel, Carter, & Lonial, 2018). The simplest form of accessing a successful firm is through its performance indices.…”

A Patulous Progress: International Entrepreneurship Effects on Chinese Born-Global Firm Performance

“…It is evident that a firm's dynamic capabilities have been associated with its performance, but if such organizational and strategic routines to achieve new resource configurations are important, so too are the resources that can be marshalled. As with other authors examining born-globals [59] or entrepreneurial orientation [60], this research not only examines dynamic capabilities, but also consider the resources deployed and specifically international knowledge, which can be associated with building international networks and markets. The knowledge-based view emerged from the resource-based view [61].…”