Entrepreneurial Orientation: The Dimensions’ Shared Effects in Explaining Firm Performance

Author:

Lomberg Carina1,Urbig Diemo2,Stöckmann Christoph3,Marino Louis D.4,Dickson Pat H.5

Affiliation:

1. Technical University of Denmark, in the Technology and Innovation Management group at DTU Management Engineering, Centrifugevej 372, 209, 2800 Kgs. Lyngby, Denmark.

2. Entrepreneurship, innovation, and corporate change at the Schumpeter School of Business and Economics and researcher at the Jackstädt Center of Entrepreneurship and Innovation Research at University of Wuppertal, Gaußstraße 20, 42119 Wuppertal, Germany. He is a research fellow at the Institute for Development Strategies, Indiana University, Bloomington.

3. University of Duisburg–Essen, Universitätsstr. 9, Essen 45141, Germany.

4. Entrepreneurship & strategic management and the Frank Mason Faculty Fellow in Family Business at The University of Alabama, Department of Management, 152 Mary Alston Hall, 361 Stadium Drive, Box 870225, Tuscaloosa, AL 35487–0225.

5. Undergraduate Program and strategic management in the School of Business at Wake Forest University, 1834 Wake Forrest Road, Winston–Salem, NC 27106.

Abstract

We shed new light on the structure of the relationship between entrepreneurial orientation (EO) and firm performance and how this relationship varies across contexts. Using commonality analysis, we decompose the variance in performance—in terms of the effects of innovativeness, proactiveness, and risk taking—into parts that are attributable to unique variations in these dimensions (unique effects) and those attributable to covariation between these dimensions (shared effects). By demonstrating the empirical relevance of unique, bilaterally shared, and commonly shared effects in a heterogeneous sample of low–tech, high–tech, and multi–sector firms, we consolidate existing conceptualizations of EO and propose an extension of the extant theoretical views of the construct.

Publisher

SAGE Publications

Subject

Economics and Econometrics,Business and International Management

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