Entrepreneurial orientation,market orientation,network ties,and performance: Study of entrepreneurial firms in a developing economy

Entrepreneurial orientation (EO), market orientation (MO) and network ties are typically modeled as separate antecedents of performance. However, the boundary conditions for such models are under-explored, as is their applicability to developing economy settings. Accordingly, drawing on institutional and social capital theories, the current paper argues that the performance benefits of EO and MO are complementary, and vary across different levels of social and business network ties. Using primary data gathered from entrepreneurial firms operating in Ghana, the study findings indicate that aligning high levels of EO and MO improves business performance, and particularly so when social and business network ties are well developed, since under these latter conditions, the performance benefits of aligning EO and MO are greatest.     

Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character

Internationalization is an important entrepreneurial strategy for promoting the long-term growth and survivability of small and medium-sized enterprises (SMEs). Family involvement in top management teams (TMTs) can explain the heterogeneous behaviors of these firms’ international entrepreneurship process. This paper analyzes the moderating effects of the family’s influence on the relationship between entrepreneurial orientation and internationalization with two TMT diversities found only in family firms: the family TMT ratio and generational involvement. An analysis of 191 Spanish family SMEs indicated that entrepreneurial orientation plays a significant role in explaining the degree of internationalization in family firms and that a diversely formed TMT shapes this relationship. A high concentration of family members in managerial positions hinders the international entrepreneurship process. This fact highlights the importance of hiring non-family managers to promote internationalization. The results also reveal that involving multiple generations in decision-making hampers entrepreneurial internationalization, generating control and coordination problems.     

Achieving sustained competitive advantage in retail and consumer service firms: The role of entrepreneurial orientation and entrepreneurial bricolage

The vital role of entrepreneurial orientation and entrepreneurial bricolage in creating sustained competitive advantage in retail and consumer service firms is increasingly acknowledged in modern markets. Using data from 246 retail and consumer service firms (hereafter R&CSFs) in Japan, this paper develops and empirically tests a framework delineating how entrepreneurial-oriented R&CSFs strategically combine existing resources while managing risks to differentiate their service portfolios to be competitive. The findings reveal that entrepreneurial orientation and entrepreneurial bricolage influence differentiation advantage and risk management, which, in turn, is associated with creating a sustained competitive advantage (hereafter SCA). This paper adds novel insights to the dynamic capabilities view and retail and service marketing literature by identifying entrepreneurial orientation, entrepreneurial bricolage, and risk management as dynamic capabilities, which allows R&CSFs to create service innovations in resource-constrained environments.     

The role of entrepreneurial orientation in service firms: empirical evidence from Austria

Entrepreneurial behaviour is becoming increasingly important for all firms, regardless of size, age, or industry sector. It is increasingly seen as one of the most important drivers for economic growth and corporate success. Nevertheless, no empirical research has so far concentrated on the role of entrepreneurial behaviour in service firms, although the service sector has become the most important (and the only growing) industry sector. This article therefore investigates the relationship between entrepreneurial orientation (EO) and corporate performance on the basis of an empirical survey of 310 service firms in Austria. Here, a significant positive relationship between EO and corporate performance could be identified, with a clear emphasis on innovative behaviour as the most important sub-dimension.     

Migrant entrepreneurship in China: entrepreneurial transition and firm performance

Small Business Economics - China is experiencing rapid urbanization during which millions of migrants move from rural to urban areas. Recently, China initiated the national strategy of “mass...     

New entrepreneurial ventures in a globalized world: The role of market orientation

The present study examines the performance consequences of a market orientation for new entrepreneurial ventures in a globalized world. We show that market orientation indeed positively impacts the performance of new entrepreneurial ventures, regardless of their geographical setting. While market orientation turns out to be a general success factor in a globalized world, the strength of the performance relationship however is contingent to the national culture as one major differentiator between geographical settings. The effect turns out to be stronger in collectivist and high uncertainty avoidance cultures. Findings are derived based on large samples with German and Thai new entrepreneurial ventures. Partial least square is applied as the method of analysis.

Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation

While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed.     

The impact of network capabilities and entrepreneurial orientation on university spin-off performance

Drawing on a database of 149 university spin-offs, we investigated the impact of network capability (NC), defined as a firm's ability to develop and utilize inter-organizational relationships, and entrepreneurial orientation (EO) on organizational performance. Not only do the results suggest that a spin-off's performance is positively influenced by its NC, but the findings also indicate that a spin-off's EO fosters competitive advantages. Although no direct relationship is apparent between EO and sales growth, sales per employee, or profit attainment, moderated hierarchical regression analyses reveal that NC strengthens the relationship between EO and spin-off performance. In sum, our research shows that a spin-off's organizational propensities and processes that enhance innovation, constructive risk taking, and proactiveness in dealing with competitors per se do not enhance growth and secure long-term survival. However, we found that NC moderates the relationship between EO and organizational performance.     

The role of the entrepreneurial university in building an entrepreneurial ecosystem in a post conflict economy: An exploratory study of Rwanda

The purpose of this paper is to examine the role of the entrepreneurial university in supporting the development of the entrepreneurial ecosystem in a post conflict, transitional economy. We developed a cross case analysis to identify common themes and patterns in the data. Our findings demonstrate that in a post conflict, transitional economy entrepreneurial universities entrepreneurial ecosystem development is constrained by a number of institutional factors including, structures, systems, leadership, strategies, and culture. We further identify that, when an entrepreneurial ecosystem system has been destroyed during conflict, these constraints present significant challenges to the evolution of the entrepreneurial ecosystem post conflict. Second, in a departure from other studies, our findings also outline the role of the entrepreneurial university in the unique evolution of the post conflict entrepreneurial ecosystem in Rwanda. We identify that the entrepreneurial ecosystem evolves through a number of stages including, embryonic, destruction, formation, and capacity building stages.     

The mediating role of entrepreneurial orientation: A meta-analysis of resource orchestration and cultural contingencies

Building on the resource orchestration literature, we use meta-analytic structural equation modeling to test a model where entrepreneurial orientation (EO) mobilizes resources to influence firm performance. Our results indicate that (1) EO mediates (partially) the human and social capital - firm performance relationships; (2) social capital is positively associated with human capital; (3) the relationship between social capital and firm performance is mediated in two steps, first, by human capital, and then, by EO; and (4) the human capital – EO relationship is stronger in high in-group collectivistic, low future oriented, and high uncertainty avoidance cultures.     

International entrepreneurial SMEs in the muslim world: The role of religion in the GCC countries

Recent studies examining the internationalisation of SMEs in emerging economies have observed that religion affects international market entry, which suggests that specific cultural aspects, such as religion, have not hitherto received enough attention. Hence, this study examines a theme that has seemingly escaped the research agenda: how does religion affect SMEs’ internationalisation? The study draws empirical evidence from 10 manufacturing SMEs located in the Gulf Cooperation Council (GCC) region. Through an embedded approach to case study research, the study queries the role of religion in the development of intra-Muslim internationalisation and contributes to the scant literature that examines the impact of Islamic values on international business activities. The findings show three dimensions of Islamic entrepreneurship, viz. regional rather than international networking orientation, risk aversion and proactiveness.     

Gender differences in entrepreneurial propensity: Evidence from matrilineal and patriarchal societies

We examine whether men and women in patriarchal and matrilineal societies differ in their propensity to engage in entrepreneurship. We conduct two studies. Study 1 involves face-to-face interviews to identify individuals who are in the process of starting a new business. We find that men in patriarchal societies are more likely than women to initiate action to start a new business. This result, however, is reversed in matrilineal societies, where women are more likely than men to do so. The results of causal mediation tests suggest that entrepreneurial self-efficacy and fear of business failure explain the gender gap in both societies. Study 2 involves a controlled experiment in the lab that captures individuals' willingness to invest in the creation of a new venture. The results of the experiments are consistent with the survey data: men in patriarchal societies and women in matrilineal societies invest more in new venture creation in a simulated environment. We therefore rule out the simplistic view that women are inherently less likely to enter into entrepreneurship due to innate differences across genders. Rather, gender differences in entrepreneurial propensity are outcome of socialization.     

New business entrepreneurship in the Japanese economy

This article presents the results of a study focused on the role of new business entrepreneurship in the Japanese economy. Particular attention is paid to the activities of various government agencies in relation to new business entrepreneurship and to the barriers to this activity in Japan. New business entrepreneurship was defined as the formation and rapid growth of a business enterprise through unique approaches to the firm's activities.In contrast to the American stereotype of Japan as an economy of a few large, interconnected firms, it is, in fact, characterized by small- and medium-sized enterprises. Over 99% of all Japanese enterprises are categorized as small or medium and over 80% of all employed Japanese are employed by such firms. However, very few of these firms are entrepreneurial in nature. The vast majority are small firms that are either subcontractors to a single larger firm or small retail, wholesale, or restaurant establishments.The start-up rate for all types of businesses in Japan has been declining for the past 10 to 15 years. More importantly, the rate of start-up s for independent firms, as opposed to firms started by a larger firm to serve primarily as a subcontractor, declined even more sharply. This indicates a significant weakness in Japan's otherwise strong economy.The low and declining rate of new business entrepreneurship in Japan is a function of structural, governmental, and cultural barriers. Structural barriers include an acute, long-term labor shortage, high financial start-up costs due in large part to high land prices, and a shortage of venture capital funding. Government barriers include “red tape,” financial and other support for small firms that is withdrawn as they enter rapid growth, and the persistent protection of inefficient industry structures. Cultural barriers involve Japan's strong group/collective orientation, the traditional career path in Japan, bounds on creativity, and the fact that entrepreneurship is not assigned a high social value.While the government provides an extensive, well-developed network of services for small- and medium-sized firms, these programs are not designed to facilitate rapid growth into the large firm phase. The Japanese experiences and programs offer useful insights for policy and tactics by other governments.     

Overconfidence and entrepreneurship: A meta-analysis of different types of overconfidence in the entrepreneurial process

While research on overconfidence and entrepreneurship has grown rapidly in recent decades, extant studies provide conflicting theoretical predictions and empirical results about the role of overconfidence for entrepreneurship. To help resolve the controversy in the literature, we draw on information-processing theory to propose a theoretical framework that disentangles the influence of three types of overconfidence (i.e., overprecision, overestimation, and overplacement) in three major phases of the entrepreneurial process. The results of meta-analytical structural equation modeling (MASEM) based on 62 primary studies reveal varying effects of the three types of overconfidence in the entrepreneurial process. We discuss the implications of these findings and identify future research opportunities to advance this stream of research.     

Cross-national invariance of the entrepreneurial orientation scale

This study utilizes data from 1279 SMEs spanning seven countries to assess the cross-national invariance of the Covin and Slevin entrepreneurial orientation scale. We first examine the psychometric properties of the scale across the full sample and each of the individual countries, identifying the optimal model for invariance testing. We then conduct a series of tests for invariance, utilizing the American sample as a reference in each. Study results highlight the optimality of a three-factor, six-item scale, and provide additional information regarding the level of measurement equivalence that exists between the U.S. and each of the other countries analyzed.     

The nascent entrepreneurship hub: goals, entrepreneurial self-efficacy and start-up outcomes

Entrepreneurship involves human agency. The entrepreneurial process occurs because people are motivated to pursue and exploit perceived opportunities. It is rooted in the theory that action is the result of motivation and cognition. Therefore, this paper applies elements of goal theory and social cognitive theory to develop a motivational model of nascent entrepreneurial start-up outcomes. The objective of this model is to renew attention on motivational constructs in entrepreneurship research. Additionally, it provides predictive value for the likelihood of new firm founding among nascent entrepreneurs. Results suggest that motivational antecedents among nascent entrepreneurs significantly influence the likelihood of quitting the start-up process versus continuing nascent entrepreneurial start-up efforts.     

Crescive entrepreneurship in complex social problems: Institutional conditions for entrepreneurial engagement

This paper explores entrepreneurship in the context of complex social problems (often referred to as ‘social’ entrepreneurship). Most management research in this area studies the entrepreneurs; we explore the institutional conditions which frame the likelihood of entrepreneurial engagement. We name these conditions ‘crescive’ and, following A.O. Hirschman's studies on institutional conditions for development we identify two analytically different sets of conditions: those that can stir up actors' motivations to engage and those that can alter their decision making logic. Our exploration of crescive conditions yields a novel conceptual model for entrepreneurial engagement in the context of complex social problems, which we label ‘crescive entrepreneurship’ and place in a space between functionalist and institutional action.     

Effect of market orientation,network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs)

This study contributes to literature on the internationalization of SMEs by analysing the influence of International Market Orientation, Network Capability, and International Entrepreneurial Orientation on the International Performance of this kind of businesses. Particularly, both the direct effects of explanatory variables of International Performance and interdependence relations between them are analysed. Results obtained from a sample of 161 Mexican SMEs using SEM-PLS analysis show that the International Performance of this kind of businesses is favourably influenced by their Network Capability and International Entrepreneurial Orientation, but not by their International Market Orientation. Similarly, it is verified that interdependence relations exist among the explanatory variables of International Performance of SMEs, where positive impact of International Entrepreneurial Orientation is observed on Network Capability and the International Market Orientation of SMEs.     

Productive and harmful entrepreneurship in a knowledge economy

This paper develops an endogenous growth model with productive entrepreneurial activities and rent-seeking. Our purpose is to link contributions to the entrepreneurial and the endogenous growth literature. We deal with complementarity between productive entrepreneurship and harmful rent-seeking activities leading to potentially multiple equilibra in the economy. The degree of rent-seeking is endogenous in our model and is influenced by the economy’s legal and institutional framework as well as capital market imperfections. Policy which establishes the legal environment and financial institutions dealing with capital market imperfections together decides which of the potentially multiple equilibria is chosen by the economy. This institutional choice implies the solution to a trade-off between high economic growth on the one and a high level of productivity on the other hand.     

Childhood adversity and the propensity for entrepreneurship: A quasi-experimental study of the Great Chinese Famine

Studies on the determinants of entrepreneurship emphasize that challenged adults tend to become entrepreneurs. However, research has not addressed the childhood origins surrounding the propensity for entrepreneurship. This article links childhood adversity to the propensity of individuals to become migrant entrepreneurs later in life. We test hypotheses derived from this theory in the context of whether, and when, children who survived the Great Chinese Famine of 1959–1961 became migrant entrepreneurs. Results strongly indicate that those who survived greater hardship during the Famine are more likely to become entrepreneurs, especially when they were younger during the famine years. We also find that being younger at the time of migration increased the likelihood of becoming entrepreneurs in their new locale. Overall, this study casts light on why, how and when childhood adversity shapes the propensity for entrepreneurship.