Author:
Andersén Jim,Samuelsson Joachim
Abstract
Purpose
– The purpose of this paper is to examine how entrepreneurial orientation (EO) and the use of management accounting practices (MAPs) in decision making affects the profitability of small- and medium-sized enterprises (SMEs), and also to analyze the extent to which EO and the use of MAPs affects profitability differently in growing and non-growing SMEs.
Design/methodology/approach
– The paper employs an empirical investigation which is based on a sample of 153 Swedish manufacturing SMEs. The data are analyzed by two- and three-way interaction regressions.
Findings
– EO and MAPs have a positive effect on profitability in non-growing SMEs, but the combined effect of EO and MAPs has no additional effect. However, for growing SMEs, high usage of MAPs in decision making is a prerequisite for EO to influence profitability.
Originality/value
– This study is the first to use the resource-based view to examine the relationship between two dimensions of resource organization and SME profitability. EO is used as a proxy for how resources are organized in order to identify opportunities, and MAPs are used as a proxy for how efficiently resources are organized.
Subject
Business, Management and Accounting (miscellaneous)
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