Session 227

Entrepreneurial Orientation, capabilities and firm performance

Track K

Date: Monday, September 22, 2014

 

Time: 08:00 – 09:15

Common Ground

Room: Budapest


Facilitator:

  • G. T. Lumpkin, University of Oklahoma

Title: Digging Deeper into Entrepreneurial Orientation: Intentions and Behaviors and Their Effect on Performance

Authors

  • Laura D'Oria, University of Tennessee
  • Pietro Mazzola, Iulm University
  • Franz Kellermanns, University of North Carolina at Charlotte

Abstract: Relying on the Theory of Planned Behavior (TPB), we examine the relationship between EO-Intention and EO-Behavior and their effect on performance in established organization. Using a sample of 80 companies listed on the Italian Stock Exchange, we provide support for the argument that EO-Intention and EO-Behavior are two different constructs, and that entrepreneurial intentions lead to entrepreneurial behaviors only in the presence of high past performance. Moreover, we found that, only EO-Behaviors positively affect performance. EO-Intentions exert simply an indirect effect, by fostering an environment for EO-Behaviors inside organizations. Therefore, managers should focus their attention on the implementation phase because it is “what they do, not what they plan that explains their success” (Weick, 2001: 346).

Title: Entrepreneurial Orientation and Second-order Competences: The Moderating Role of Environmental Hostility and Organizational Structure

Authors

  • Rasmi Kokash, Durham University
  • Mathew Hughes, Durham University

Abstract: The influence of Entrepreneurial Orientation (EO) on a firm’s performance and success is broadly recognized. Similarly, second-order competences—defined as the firm’s competence to build new competences—as a critical resource of a firm’s competitive advantage are also important to a firm’s success. However, the direct association between EO and second-order competences remains largely elusive. Our study investigates in what ways and how EO associates with second-order R&D and Marketing competences while accounting for specific contingencies. We mainly argue that a firm’s manifestation of EO behavior benefits second-order competences; yet, while such gained effects are enhanced as environment hostility increases, these benefits are diminished by organizational structure. Analysis of data, collected using a web-based survey from executives of firms from different industries, using regression modeling, provide support to our main arguments and some support to the contingency factors. Important and novel theoretical and managerial implications emerge from this study.

Title: Know Thyself: Entrepreneurial Orientation, Partner-Specific Absorptive Capacity and the Dynamic Sensing of New Opportunities

Authors

  • Alessandro Giudici, City University London
  • Yiannis Kouropalatis, Cardiff University
  • Patrick Reinmoeller, Cranfield University

Abstract: What is the influence of external relationships on how firms search for new opportunities? In this study we focus on external relationships with network intermediaries – e.g. venture associations, universities, government agencies, specialized consultancies, etc. – a spectrum of external relationships on which more research is needed. More specifically, we build upon research on strategy, entrepreneurship, and inter-organizational relationships to demonstrate that entrepreneurial orientation and partner-specific absorptive capacity influence how firms sense novel opportunities by shaping its organizational self-awareness. Our results shows that a firm’s level of organizational self-awareness – i.e. how it becomes cognizant of its internal resources and external environment – mediates the relationship between its intrinsic entrepreneurial characteristics coupled with its ability to gain valuable external knowledge and the outcome of its search for opportunities.

Title: The Divergent Role of Sources of Experience on Entrepreneurial Expectations and Outcomes

Authors

  • Maud Pindard-Lejarraga, IE Business School
  • José Lejarraga, IE Business School
  • Matthias Tietz, IE Business School

Abstract: We explore how different sources of experience affect entrepreneurial expectations and outcomes. Entrepreneurs can resort to different forms of experience to start a new business: startup experience, industry experience, supervisory experience, or general work experience. We argue that different forms of experience will affect shorter and longer term expectations asymmetrically. Previous studies on entrepreneurial expectations have focused on the accuracy of expectations (e.g. the gap between expectations and outcomes), but no study has looked at whether the determinants of expectations also determine entrepreneurial success. We derive a set of hypotheses regarding the effect of different sources of experience and their effects on short/long-term expectations and actual success. We test these hypotheses using the most recent release of the Panel Studies of Entrepreneurial Dynamics (PSED).

Title: The Role of Entrepreneurial Orientation in Surviving a Financial Crisis: Differences between Family and Non-Family Firms

Authors

  • Antonio Revilla, Carlos III University of Madrid
  • Ana Pérez-Luño, Pablo de Olavide University
  • Maria Nieto, Carlos III University of Madrid

Abstract: This paper analyzes the impact of entrepreneurial orientation on firm survival in a context of economic crisis. Our hypotheses, building on the literatures on entrepreneurship and family firms, postulate a positive relationship between entrepreneurial orientation and survival, as well as a negative moderation effect of familiness on this relationship. The empirical study builds on a rather unique dataset, for which we tracked the survival status of 369 Spanish manufacturing firms from 2006 to December 2013.—69 of which ‘failed’ during that period. Our results confirm that familiness exerts highly relevant moderation effects; whereas we found that entrepreneurial orientation reduces the hazards of business failure of non-family firms, we found no significant effect on the survival of family businesses.

Title: University Entrepreneurial Environment as an Antecedent of Causal and Effectual Reasoning of Student Entrepreneurs

Authors

  • Galina Shirokova, St. Petersburg University
  • Tamara Galkina, Hanken School of Economics
  • Karina Bogatyreva, Saint Petersburg State University

Abstract: The present study shows that university entrepreneurial infrastructure constitutes an important part of entrepreneurial environment, which, in turn, has a significant effect on entrepreneurial behavior and decision making process of student entrepreneurs. We contribute to the existing literature on the contextual understanding of entrepreneurial behavior by diversifying the notion of university entrepreneurial infrastructure and splitting it into four variables. Our preliminary findings show that the level of entrepreneurial education and the favorable entrepreneurial climate are positively associated with causal entrepreneurial behavior while the level of networking and coaching positively associated with effectual entrepreneurial behavior. The financial support at the university has positive relationship both effectual and causal reasoning in entrepreneurial decision making process of student entrepreneurs.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 386: Entrepreneurial Corporate Governance
Sun: 09:30 – 10:45
Session 387: Social Capital in Emerging Markets: Local, Glocal or Global?
Sun: 11:15 – 12:30
Session 462: Crowdfunding: State of the Art and Directions for Future Research
Sun: 15:45 – 17:00
Session 235: Cognitive and Behaviorial Perspectives of Entrepreneurial Decision Making
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 607: Entrepreneurship and Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 227: Entrepreneurial Orientation, capabilities and firm performance
Session 445: Adaptation issues for Entrepreneurial Firms
Mon: 11:00 – 12:15
Session 232: Theory Building in the Field of Entrepreneurship
Session 440: Entrepreneurial Strategies in Emerging and International markets
Mon: 14:45 – 16:00
Session 231: Entrepreneurial Leadership: What it Takes to be a Successful Enterprise?
Session 457: Ownership and Funding Structures: Performance Implications for the entrepreneurial firms
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 229: Who Founds and how the Founding Team Impacts the Entrepreneurial Firm?
Tue: 08:00 – 09:15
Session 224: Funding an Entrepreneurial Venture: What Works and What Does Not?
Session 236: Universities, Academics and Incubators: The Role of Academic Institutions in Shaping Entrepreneurial Firm and Outcomes
Tue: 11:00 – 12:15
Session 230: TMTs as Firm Resources
Session 309: New Conversations on Business Models
Tue: 15:30 – 16:45
Session 225: Entrepreneurial Networks: Formation and Implications
Session 228: Dynamic Capabilities and Performance Implications for New Firms
Tue: 17:15 – 18:30
Session 234: Institutional, Industry and Firm Specific Impacts on Nascent Firms
Session 441: Funding Entrepreneurial Ventures: Sources and Successes


Strategic Management Society

Madrid