THE COMPLEMENTARY EFFECTS OF FIRMS’ AND TEAM LEADERS’ ENTREPRENEURIAL ORIENTATION ON INNOVATION SUCCESS AND PERFORMANCE

Abstract

The objective of this paper is to enrich the literature on the entrepreneurial orientation (EO)–performance relationship by introducing innovation success as an antecedent variable. By applying structural equation models, we examine a sample of 356 individuals from five organisations. The main results show that the team leader EO and firm EO are complementary and that they boost innovation success significantly, thereby having an indirect positive impact on the relationship between EO and performance. The mediating effects of innovation success imply that it is an antecedent in the EO–performance relationship at organisational levels, which adds to current theoretical discussions regarding the multilevel applicability of the EO construct. Thus, this study represents an original source for human resource departments that are shaping working groups.