Three levels of culture and firms’ entrepreneurial orientation: A research agenda

Numerous studies examining the linkage between corporate entrepreneurship and performance resort to the entrepreneurial orientation construct to assess a firm's degree of entrepreneurship. Little conceptual and empirical research has been devoted to understanding the factors and conditions that produce Entrepreneurial Orientation. Generic explanatory variables such as environment, organization, strategy and culture have been mentioned in past research, but though a number of hypotheses have been proposed, few have been thoroughly developed and tested. In this article, we focus on one explanatory variable – culture – that we develop along multiple axes. We propose a conceptual framework that aims to provide a better understanding of how three interdependent levels of culture – national, industry and corporate – influence Entrepreneurial Orientation.     

Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability

This study examines how three different dimensions of entrepreneurial orientation (proactiveness, innovativeness, and risk-taking) each determine internationalization strategies and enhance international performance among small and medium-sized enterprises (SMEs) through the mediating role of marketing capabilities. An integrative theoretical framework built on international entrepreneurship and a resource-based approach was tested in the context of Korean SMEs. Analyses of 401 survey data collected from Korean exporting SMEs revealed the differential effects of each entrepreneurial orientation and the mediating effect of marketing capability on internationalization strategies and performance. Proactiveness and risk taking appeared to function as significant antecedents of marketing capability. Marketing capability, in turn, significantly decreased internationalization scope and increased the financial performance of Korean SMEs, though it did not influence internationalization scale. This study further confirms that the mediating role of marketing capability in entrepreneurial orientation-performance relationships vary by entrepreneurial orientation dimensions. Taking the direct and indirect roles of the entrepreneurial orientation dimensions together, this study recommends the critical prioritization of risk-taking over proactiveness. It extends previous approaches to the triad of resource–capability–performance. Theoretical contributions and insightful managerial implications are also provided.     

Linking entrepreneurial and market orientation to the SME’s performance growth: the moderating role of entrepreneurial experience and networks

Entrepreneurial orientation and market orientation (EO and MO, respectively) have received extensive research attention in the past several decades. Although scholars widely agree that both MO and EO are critical to firms’ performances, a better understanding is still needed about how market and entrepreneurial orientation develop over time as well as their relative impact on the growth of the SME’s performance. This study does not consider MO and EO as generic resources that always positively influence firms’ performances; instead, it tries to explore contingent elements, such as social and business networks and accumulated entrepreneurial experience. The hypotheses were tested on 191 small and medium-sized electronic firms located in an Italian geographical cluster during two periods: 2005 and 2016. This study suggests that SMEs, which develop social networks, may enjoy considerable advantages from entrepreneurial and market orientation, improving their performance benefits. Moreover, our results show that previous entrepreneurial experience, when specific, can reinforce the impact of entrepreneurial and market orientation on firms’ performance growth. This analysis makes several important contributions to the management literature on the strategic orientation of firms, the entrepreneurial experience and network development.

     

The significance of sustained entrepreneurial orientation on performance of firms – A longitudinal analysis

This study focuses on the importance of changes in entrepreneurial orientation (EO) over time for subsequent firm performance, and the significance which inimitable resources (networks, governance system and unique competence) might have in this connection. Hypotheses are developed to test the effects that changes in EO level over a time period and resources have on subsequent firm performance. The study is based on data from 168 Norwegian SMEs, interviewed both in 2000 and 2003. The primary contribution of this study is that a change in EO over time (increased or decreased), may be of importance for a firm's performance represented by performance compared to competitors, and employment growth. A focus on entrepreneurial activities seems to be beneficial in the long run (increasing EO), while the opposite is the case if the EO level decreases. It is especially encouraging to see that firms focusing on EO (increased or the same) are positively associated with employment growth, one of the primary policy goals world-wide. Another contribution from this study is that resources that may be inimitable for firms have some influence on performance compared to competitors. Implications for policy-makers, practitioners and further research are discussed.     

What are the antecedents of women’s entrepreneurial orientation?

This study seeks to identify the antecedents of women’s entrepreneurial orientation (EO) and exploring what possible relationships that may exist between them. The research focuses on women entrepreneurs and non-entrepreneurs in a quantitative perspective whose methodology consisted of the collection of primary data through a survey distributed to women in Portugal. After structural equation modelling was applied, the results suggested that recognition of opportunities influences EO. This influence is expressed both directly and indirectly through training in management and entrepreneurial skills. These findings led to the conclusion that policies promoting training for community members, in general, need to be rethought and policies need to emphasise training in management that enhances entrepreneurial skills, thereby increasing the proliferation of entrepreneurship. Entrepreneurship education and training should be promoted from basic education onwards in order to develop entrepreneurial skills from an early age. Prior to this study, the relationships between opportunity recognition, management training and entrepreneurial skills have never been studied in relation to women.     

Does direct experience matter? Examining the consequences of current entrepreneurial behavior on entrepreneurial intention

Entrepreneurial behavior research has used intention models to explain how an individual’s beliefs shape the attitudes and motivations that influence entrepreneurial intention. Nevertheless, as entrepreneurship promotion initiatives become global, it becomes relevant to explore the consequences of being engaged in entrepreneurial behavior on entrepreneurial intention. We aim to shed light on whether the direct experience reinforces an individual’s entrepreneurial intention or reduces it. Building on an extended version of the planned behavior theory, we use the behavioral reasoning theory to propose a research design to study the influence of being currently engaged in entrepreneurial behavior on entrepreneurial intention. We introduce individual’s age as an additional moderator of the effects of directly experiencing entrepreneurial behavior. We use PLS-MGA to complete a multi-group SEM analysis for different groups of individuals (from a sample of 430), comparing groups based on their entrepreneurial activity and age group. Results of this research work evidence that current engagement in entrepreneurship activities produces significant differences in the intention to start a new venture between older and younger participants. The results suggest that engagement in entrepreneurial activity modifies entrepreneurial intention and that these effects are contingent to the individual’s age. This research work contributes to the extant call to explore reverse causality between actual behavior and an individual’s intention by introducing behavioral reasoning theory. These results provide support to initiatives to adapt entrepreneurship promotion efforts to the specific characteristics of the participants.     

Stale in the pulpit? Leader tenure and the relationship between market growth strategy and church performance

• Taking a strategic choice perspective, the current study examines leader tenure and the growth implications of pursuing a market penetration versus market development strategy in a church setting. Using cross-sectional time series regression analyses of 1415 church organizations over a period of 6 years, study findings demonstrate the influence of leader tenure on both financial and non-financial church performance, but provide minimal evidence supporting the argument that the selected market strategy matters to organizational performance outcomes in churches.

Copyright © 2010 John Wiley & Sons, Ltd.     

Exploring entrepreneurs’ human capital components and effects on learning orientation in early internationalizing firms

This study aims to enhance our understanding of the role of entrepreneurs’ human capital components and the influences on learning orientation in early internationalizing firms. Drawing from the integration of human capital theory, resource-based view theory, learning theory, and on the literature of international entrepreneurship and strategic management, a research model is proposed and consists of five constructs, namely international business skill, international business knowledge, entrepreneurial competence, managerial competence and learning orientation. The empirical analysis was carried out on a sample of 158 early internationalizing firms in a food industry in Thailand. Partial least square technique was conducted to test the structural equation models and hypotheses. This followed by some illustrative case studies as supplementary to the empirical findings. The results confirm our hypotheses and support the proposed research model. This study yielded interesting findings in which an entrepreneur’s skill and knowledge in international business enhance entrepreneurial and managerial competencies. These competencies, in turn, play an important role in influencing a firm’s strategic learning orientation     

‘Embrace the masculine; attenuate the feminine’ – gender,identity work and entrepreneurial legitimation in the nascent context

This article critically analyses how gender bias impacts upon women’s efforts to legitimate nascent ventures. Given the importance of founder identity as a proxy for entrepreneurial legitimacy at nascency, we explore the identity work women undertake when seeking to claim legitimacy for their emerging ventures in a prevailing context of masculinity. In so doing, we challenge taken for granted norms pertaining to legitimacy and question the basis upon which that knowledge is claimed. In effect, debates regarding entrepreneurial legitimacy are presented as gender neutral yet, entrepreneurship is a gender biased activity. Thus, we argue it is essential to recognize how gendered assumptions impinge upon the quest for legitimacy. To illustrate our analysis, we use retrospective and real time empirical evidence evaluating legitimating strategies as they unfold, our findings reveal tensions between feminine identities such as ‘wife’ and ‘mother’ and those of the prototypical entrepreneur. This dissonance prompted women to undertake specific forms of identity work to bridge the gap between femininity, legitimacy and entrepreneurship. We conclude by arguing that the pursuit of entrepreneurial legitimacy during nascency is a gendered process which disadvantages women and has the potential to negatively impact upon the future prospects of their fledgling ventures.     

Entrepreneurial Orientation’s effect on marketing strategies and success: implications for US firms entering Cuba

Entering a newly liberalized market is a great challenge for companies as the environment is new and untested. On one side, to have success in these markets, firms must have a plan of action before resources are committed. Entrepreneurial orientation (EO) is associated with the successful exploration of resources and the creation of new niches as the Resource Theory supports. On another side, a natural bond between EO and marketing is found in the Value Creation Theory. So, to maximize firm success in newly liberalized markets (such as Cuba), firms must be able to objectively gauge their own entrepreneurial orientation adopting a marketing approach. Within this framework, the present paper will attempt to effectively measure the entrepreneurial orientation of US firms that have an interest in entering the Cuban market. A final sample of 81 US firms was obtained. The sample was then split into two groups (high and low entrepreneurial orientation) and compared regarding their marketing strategies (H1) and their levels of success (H2). Our results confirmed both hypotheses.     

What is the joint effect of employee satisfaction and customer orientation on the organizational culture in metalworking manufacturing?

It is a known fact that culture is an important element for the organizations. In this context, a research has been carried out in which the main subject is about to investigate the organizational culture depending on the factors of employee satisfaction and customer orientation in metalworking manufacturing firms. To perform the study, we constructed an original model and conducted research with 578 employees of metalworking organizations. After the data analysis, we determined that organizational culture has positive-significant correlation with employee satisfaction and customer orientation (at the 0.000 level). Additionally, the total explained variance of organizational culture – depending on employee satisfaction and customer orientation – has come out as a satisfying value (0.53). According to the results of our research, we are able to conclude that employee satisfaction and customer orientation has a mid-level effect on creating a substantial organizational culture.     

Individual entrepreneurial orientation,value congruence,and individual outcomes: Does the institutional entrepreneurial environment matter?

Although entrepreneurial orientation (EO) at the firm-level is often conceptualized as a direct antecedent of performance, the findings of previous studies lending support to this association are inconsistent. Consequently, drawing on the attraction/selection/attrition and institutional theories and employing the moderated mediation analysis approach, this study conceptualizes the individual perception of a firm's EO or individual entrepreneurial orientation (IEO). It examines the direct and indirect effects of IEO on individual outcomes measured in terms of performance expectation, job involvement, and organizational commitment. More specifically, it examines whether these effects are mediated by value congruence and moderated by the institutional entrepreneurial environment to understand these inconsistent findings better. Using a sample of 398 environmentally concerned small and medium-sized enterprises (SMEs) in South Korea, partial least squares structural equation modeling (PLS-SEM), and the PROCESS macro were employed to analyzed the research model. This study finds that value congruence mediates the association between IEO and performance expectation, job involvement, and organizational commitment. The moderated mediation model analysis also suggests that the mediating role of value congruence increases as the level of the institutional entrepreneurial environment increases. These findings offer useful theoretical and managerial implications of the IEO on individual outcomes.     

Examining the relationship between strategic HRM and hospital employees’ work attitudes: an analysis across occupational groups in public and private hospitals

Abstract

As human resource challenges have increased, strategic human resource management (SHRM) in hospitals has evolved into an important management task. Accompanying its growing relevance, there is an evolving research stream on the impact of SHRM on organizational and individual-level outcomes in the hospital context. We aim to address two remaining research gaps by investigating variations in the use of SHRM across organizations (public vs. private ownership types) and differences in the relationship between SHRM and employee attitudes within organizations (for the occupational groups of nurses and physicians). This study is based on a sample of 179 German acute care hospitals. We employ ANOVA and logistic regression analyses, and our results corroborate previous research findings showing that SHRM has positive effects on employee attitudes. However, the effects vary in significance and magnitude, depending on whether nurses or physicians are targets. Further, we reveal significant SHRM differences in public- vs. private-sector organizations.     

Exploring the relationship between environmental orientation and brand value: is there fire or only smoke?

This paper investigates whether a firm's environmental orientation influences corporate brand value. In the discussion on sustainable development, corporate participation is a given, and increasingly firms are adopting environmental policies and practices. This paper observes corporate environmentalism from two perspectives: environmental embeddedness – the level to which environmental values are incorporated in brand identity; and environmental performance – the level of a firm's accordance with environmental policies and good practices. Cross‐analysis of these two perspectives generates four types of corporate environmental orientation: leaders, performers, advocates and laggards. The results do not provide conclusive evidence for whether consumers reward environmental leaders and punish environmental laggards by converting their environmental opinions into brand perceptions and purchasing decisions. It is believed that the hypothesized relationships are moderated and mediated by other stimuli, so managers are advised not to negate corporate social responsibility, but rather to invest wisely in environmental activities and its communication. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

Engaged and committed? The relationship between work engagement and commitment in professional service firms

Our study explores the relationship between employee engagement and foci-commitment of employees in professional service firms (PSFs). PSFs compete on the basis of their ability to encourage their employees to generate exceptional knowledge-based services and products, acting within and beyond the organizational boundaries. In order to achieve these outputs, the PSFs need to ensure that their professionals are engaged and committed. Drawing on 375 surveys from the employees of a global PSF, we compare two models to test the relationship between work engagement and multi-foci commitment: the organization, the client, the team and the profession. We first explore an overall positive effect of work engagement on commitment to all four foci. We then compare the overall impact to the independent effects of work engagement dimensions on four commitment foci. Our findings suggest that work engagement with three dimensions is a better-fitting model in the PSFs context.     

The role of supply management innovativeness and supplier orientation in firms’ sustainability performance

Questions about the influencing factors and measurement of firms' sustainability performance have attracted growing research interest, as the requirements for sustainability have steadily increased. This study examines whether supply management innovativeness and supplier orientation make positive impacts on firms' overall sustainability performance. An empirical study based on a survey targeting large- and medium-sized manufacturing companies in Finland shows that innovativeness in supply management considerably influences a firm's overall sustainability performance and that supplier orientation positively relates to sustainability performance. The benefits of innovativeness in supply management and strategic supplier orientation are directly realised in sustainability performance. Therefore, supply management is not only a gatekeeper against sustainability risks arising from the supply base but is also a function by which new ideas aiming to influence supply markets and firms' sustainability are presented.     

The moderating influence of HR operational autonomy on the entrepreneurial orientation–performance link in franchise systems

This study investigates the concept of HR Operational Autonomy, i.e., the freedom a franchisor offers to franchisees throughout the system with regards to their creation of HR practices. It is shown to have a significant positive moderating effect on the EO-performance link among UK franchise systems, explaining over 20 % of the variance in performance outcomes. Implications and future research directions are discussed.     

The link between SMEs alliance portfolio diversity and top management’s entrepreneurial and alliance orientations

International Entrepreneurship and Management Journal - To be able to survive and grow in twenty-first century global network economies, small-to-medium-sized enterprises (SMEs) strive to develop...     

The behavioural gap between entrepreneurial SME’s and high growth: evidence from Canada

Entrepreneurial orientation (EO) describes a firm’s attitude towards entrepreneurial activity; however, it does not measure the specific behaviors likely to contribute to high growth. This research applies the resource-based and dynamic capabilities views to propose a mediation model between EO and high growth. The theoretical framework is drawn from the strategic management and entrepreneurship literature. Competing models are tested against a sample of Canadian SMEs to validate the proposed explanation for the presence of high-growth firms among the population. The study finds that the relationship between EO and high growth is perfectly mediated by innovation performance, a behavioral measure of innovation. This research contributes to firm growth theory while providing further insight into the drivers of high growth useful to policy makers endeavoring to stimulate, and overcome barriers to, entrepreneurship and innovation. Determining the factors associated with firm growth can have implications for management as well as policy. If a firm’s goal is to grow it must be able to focus its limited resources using a strategy appropriate for growth.

     

Venture capital firms’ lead orientation,network position,and selection of familiar syndicate partners

This study explores how a venture capital (VC) firm’s lead orientation (i.e., acting more as a lead investor rather than a follower investor in past syndication investments) influences its selection of familiar syndicate partners. By conducting empirical research that uses detailed information of 11,219 investment deals in China from January 1999 to June 2016, we find that a VC firm’s lead orientation has an inverted U-shaped relationship with its propensity to select familiar syndicate partners. In other words, as a VC firm’s lead orientation increases, its familiarity degree with the partners in the subsequent syndicated investment will first increase and then decrease. In addition, a VC firm’s network centrality and network constraint imposed by the VC network structure both weakens the inverted U-shaped relationship between its lead orientation and the selection of familiar partners. Robustness checks with different measures and samples, together with the instrumental variable approach and the Heckman selection model that address potential endogeneity problems, show the reliability of our findings.