Exploring an Inverted U–Shape Relationship between Entrepreneurial Orientation and Performance in Chinese Ventures

Abstract

The critical role of entrepreneurial orientation (EO) in firm performance has been widely studied in the U.S. context. However, the examination of this key construct in emerging regions such as China has been very limited. In this article, we hypothesize that the relationship between EO and firm performance is best represented as curvilinear, as opposed to linear, in China. We use a two–study approach to test the link between EO and performance, as expressed in both perceptual and objective performance. Findings of both studies demonstrate an inverted U–shape relationship. Implications for future research on EO are discussed.