The relationship between entrepreneurial orientation and firm performance has been the focus of numerous empirical studies over the past decade. The conclusions and findings reported are diverse and often conflicting. One possible explanation for mixed findings is that past studies do not take into account the dynamic nature of the industry environment. Using a sample of 192 Swiss firms from several different industries, this study examines the direct effect of entrepreneurial orientation on financial firm performance along with the moderating effect of a dynamic environment on the relationship between entrepreneurial orientation and performance. Results of this study suggest that for firms competing in a highly dynamic environment, the positive effect of an entrepreneurial orientation on financial performance is enhanced.
Aarikka-Stenroos, L., and B. Sandberg. 2012. “From New-Product Development to Commercialization through Networks.” Journal of Business Research 65 (2): 198–206.
Ahmed, P. K., and M. Rafiq. 1992. “Implanting Competitive Strategy: A Contingency Approach.” Jourtiat of Marketing Management 8: 49–67.
Aiken, L. S., and S. G. West. 1991. Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: SAGE Publications.
Akgun, A. E., H. Keskin, and J. Byrne. 2008. “The Moderating Role of Environmental Dynamism between Firm Emotional Capability and Performance.” Journal of Organizational Change Management 21 (2): 230–52.
Ambos, B., and B. B. Schlegelmilch. 2007. “Innovation and Control in the Multinational Firm: A Comparison of Political and Contingency Approaches.” Strategic Management Journal 28 (5): 473–86.
Anderson, B. S., and Eshima, Y. 2013. “The Influence of Firm Age and Intangible Resources on the Relationship between Entrepreneurial Orientation and Firm Growth among Japanese SMEs.” Journal of Business Venturing 28: 413–29.
Anderson, B. S., P. M. Kreiser, D. F. Kuratko, J. S. Hornsby, and Y. Eshima. 2015. “Reconceptualizing Entrepreneurial Orientation.” Strategic Management Journal 36: 1579–96.
Armstrong, J. S., and T. S. Overton. 1977. “Estimating Non-Response Bias in Mail Surveys.” Journal of Marketing Research 14: 396–402.
Atuahene-Gima, K., H. Li, and L. M. De Luca. 2006. “The Contingent Value of Marketing Strategy Innovativeness for Product Development Performance in Chinese New Technology Ventures.” Industrial Marketing Management 35: 359–72.
Bagozzi, R. P., and Y. Yi. 1988. “On the Evaluation of Structural Equation Models.” Journal of the Academy of Marketing Science 16 (1): 74–94.
Bagozzi, R. P., Y. Yi, and L. W. Phillips. 1991. “Assessing Construct Validity in Organizational Research.” Administrative Science Quarterly 36: 421–58.
Baker, W. E., and J. M Sinkula. 2009. “The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses.” Journal of Small Business Management 47 (4): 443–64.
Boyd, B., G. Dess, and A. Rasheed. 1993. “Divergence between Archival and Perceptual Measures of the Environment.” Academy of Management Review 18: 204–26.
Brettel, M., C. Chomik, and T. C. Flatten. 2015. “How Organizational Culture Influences Innovativeness, Proactiveness, and Risk-Taking: Fostering Entrepreneurial Orientation in SMEs.” Journal of Small Business Management 53 (4): 868–85.
Burns, T., and G. M. Stalker. 1961. The Management of Innovation. London: Tavistock.
Chandler, G. N., B. Honig, and J. Wiklund. 2005. “Antecedents, Moderators, and Performance Consequences of Membership Change in New Venture Teams.” Journal of Business Venturing 20: 705–25.
Chang, S.-J., A. V. Witteloostuijn, and L Eden. 2010. “From the Editors: Common Method Variance in International Business Research.” Journal of International Business Studies 41 (2): 178–84.
Choi, N., and S. Majumdar. 2014. “Social Entrepreneurship as an Essentially Contested Concept: Opening a New Avenue for Systematic Future Research.” Journal of Business Venturing 29: 363–76.
Choi, Y. R., M. Lévesque, and D. A. Shepherd. 2008. “When Should Entrepreneurs Expedite or Delay Opportunity Exploitation?” Journal of Business Venturing 23: 333–55.
Churchill, G. A. Jr. 1979. “A Paradigm for Developing Better Measures of Marketing Constructs.” Journal of Marketing Research 16 (February): 64–73.
Cohen, J., P. Cohen, S. G. West, and L. S. Aiken. 2003. Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences, 3rd ed. Mahwah, NJ: Erlbaum,.
Collis, D. J. 1994. “Research Note: How Valuable are Organizational Capabilities.” Strategic Management Journal 15 (x): 143–52.
Coombs, J. E., and P. E. Bierly. 2006. “Measuring Technological Capability and Performance.” R&D Management 36 (4): 421–38.
Costa, C., M. Fontes, and M. V. Heitor. 2004. “A Methodological Approach to the Marketing Process in the Biotechnology-Based Companies.” Industrial Marketing Management 33 (5): 403–18.
Covin, J. G., and D. P. Slevin. 1988. “The Influence of Organization Structure on the Utility of an Entrepreneurial Top Management Style.” Journal of Management Studies 25 (3): 217–34.
Covin, J. G., and D. P. Slevin. 1989. “Strategic Management of Small Firms in Hostile and Benign Environments.” Strategic Management Journal 11: 75–87.
Covin, J. G., and D. P. Slevin. 1991. “A Conceptual Model of Entrepreneurship as Firm Behavior.” Entrepreneurship Theory & Practice 16 (1): 7–25.
Curran, P. J., Bauer, D. J., and Willoughby, M. T. 2004. “Testing Main Effects and Interactions in Latent Curve Analysis.” Psychological Methods 9 (2): 220–37.
De Clercq, D., D. Dimov, and N. Thongpapanl. 2010. “The Moderating Impact of Internal Social Exchange Processes on the Entrepreneurial Orientation–Performance Relationship.” Journal of Business Venturing 25: 87–103.
Dess, G. G., and D. W. Beard. 1984. “Dimensions of Organizational Task Environment.” Administrative Science Quarterly 29: 52–73.
Dess, G. G., and G. T. Lumpkin. 2005. “The Role of Entrepreneurial Orientation in Stimulating Effective Corporate Entrepreneurship.” Academy of Management Executive 19 (1): 147–56.
Dess, G. G., G. T. Lumpkin, and J. G. Covin. 1997. “Entrepreneurial Strategy Making and Firm Performance: Tests of Contingency and Configurational Models.” Strategic Management Journal 18 (9): 677–95.
Dess, G. G., and R. B. Robinson, Jr. 1984. “Measuring Organizational Performance in the Absence of Objective Measures: The Case of the Privately-Held Firm and Conglomerate Business Unit.” Strategic Management Journal 5: 265–73.
Doyle, P., and P. Stern. 2006. Marketing Management and Strategy, 4th ed. London: Prentice- Hall.
Etemad, H. 2015. “Entrepreneurial Orientation-Performance Relationship in the International Context.” Journal of International Entreprenurship 13 (1): 1–6.
Ferreira, J., and S. G. Azevedo. 2008. “Entrepreneurial Orientation (EO) and Growth of Firms: Key Lessons for Managers and Business Professionals.” Problems and Perspectives in Management 6 (1): 82–88.
Freel, M. S. 2005. “Patterns of Innovation and Skills in Small Firms.” Technovation 25: 123–34.
Gerbing, D. W., and J. C. Anderson. 1988. “An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment.” Journal of Marketing Research 25 (2): 186–92.
GutiéRrez, P. R., M. F. Fuentes, and L. R. Ariza. 2014. “Strategic Capabilities and Performance in Women-Owned Businesses in Mexico.” Journal of Small Business Management 52 (3): 541–54.
Hair, J. F., B. Black, B. Babin, R. E. Anderson, and R. L. Tatham. 2005. Multivariate Data Analysis. Saddle River, NJ: Prentice Hall.
Hair, J. F., Black, W. C., Babin, B. J., and Anderson, R. E. 2010. Multivariate Data Analysis: A Global Perspective, 7th ed. Upper Saddle River, NJ: Pearson Education, Inc.
Hernández-Perlines, F. 2016. “Entrepreneurial Orientation in Hotel Industry: Multi-Group Analysis of Quality Certification.” Journal of Business Research In press.
Hult, G. T. M., Hurley, R.F. and Knight, G.A. 2004. “Innovativeness: Its Antecedents and Impact on Business Performance.” Industrial Marketing Management 33: 429–38.
Hult, G. T. M., D. J. Ketchen, and M. Arrfelt. 2007. “Strategic Supply Chain Management: Improving Performance through a Culture of Competitiveness and Knowledge Development.” Strategic Management Journal 28 (X): 1035–52.
Jaworski, B. J., and A. K. Kohli. 1993. “Market Orientation: Antecedents and Consequences.” Journal of Marketing 57 (3): 53–70.
Jennings, D. E., and J. R. Lumpkin. 1992. “Insights between Environmental Scanning Activities and Porter’s Generic Strategies: An Empirical Analysis.” Journal of Management 18: 791–803.
Joshi, M. P., S. R. Das, and N. Mouri. 2015. “Antecedents of Innovativeness in Technology-Based Services (TBS): Peering into the Black Box of Entrepreneurial Orientation.” Decision Sciences 46 (2): 367–402.
Kabadayi, S., N. Eyuboglu, and G. P. Thomas. 2007. “The Performance Implications of Designing Multiple Channels to Fit with Strategy and Environment.” Journal of Marketing 71 (4): 195–211.
Kara, A., J. E. Spillan, and O. W. Deshields Jr. 2005. “The Effect of Market Orientation on Business Performance: A Study of Small-Sized Service Retailers Using MARKOR Scale.” Journal of Small Business Management 43 (2): 105–18.
Khandwalla, P. N. 1977. The Design of Organizations. New York: Harcourt Brace Jovanovich. New York, Harcourt Brace Jovanovich.
Koberg, C., N. Uhlenbruck, and Y. Sarason. 1996. “Facilitators of Organizational Innovation: The Role of Life-Cycle Stage.” Journal of Business Venturing 11: 133–49.
Kollmann, T., and C. Stöckmann. 2012. “Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations.” Entrepreneurship: Theory and Practice 38 (5): 1001–26.
Kumar, K., R. Subramanian, and C. Yauger. 1998. “Examining the Market Orientation – Performance Relationship: A Context – Specific Study.” Journal of Management 24 (2): 201–33.
Li, H., and Li, J. 2009. “Top Management Team Conflict and Entrepreneurial Strategymaking in China.” Asia Pacific J. Manage 26: 263–83.
Li, Y. H., J. W. Huang, and M.-T. Tsai. 2009. “Entrepreneurial Orientation and Firm Performance: The Role of Knowledge Creation Process.” Industrial Marketing Management 38: 440–49.
Liu, S., X. Luo, and Y.-Z. Shi. 2002. “Integrating Customer Orientation, Corporate Entrepreneurship, and Learning Orientation in Organizations-In-Transition: An Empirical Study.” International Journal of Research in Marketing 19 (X): 367–82.
Lumpkin, G. T., and G. G. Dess. 1996. “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance.” Academy of Management Review 21 (1): 135–72.
Lumpkin, G. T., and G. G. Dess. 2001. “Linking Two Dimensions of Entrepreneurial Orientation to Firm Performance.” Journal of Business Venturing 16: 429–51.
Makino, S., T. Isobe, and C. M. Chan. 2004. “Does Country Matter?” Strategic Management Journal 25 (10): 1027–43.
Malhotra, N. K., S. S. Kim, and A. Patil. 2006. “Common Method Variance in IS Research: A Comparison of Alternative Approaches and Reanalysis of past Research,”.” Managent Science 52 (12): 1865–83.
March, J. G. 1991. “Exploration and Exploitation in Organizational Learning.” Organization Science 2: 71–87.
Marlin, D., B. T. Lamont, and J. J. Hoffman. 1994. “Choice Situation, Strategy, and Performance: A Re-Examination.” Strategic Management Journal 15: 229–39.
Martin, S. L., and R. G. Javalgi. 2016. “Entrepreneurial Orientation, Marketing Capabilities and Performance: The Moderating Role of Competitive Intensity on Latin American International New Ventures.” Journal of Business Research 69: 2040–51.
Martínez-Sánchez, A., M. J. Vela-Jiménez, M. Pérez-Pérez, and P. de-Luis-Carnicer. 2011. “The Dynamics of Labour Flexibility: Relationships between Employment Type and Innovativeness.” Journal of Management Studies 48 (4): 715–36.
Mason, C. H., and W. D. Perreault. 1991. “Collinearity, Power, and Interpretation of Multiple Regression Analysis.” Journal of Marketing Research 28 (3): 268–80.
Menguc, B., and S. Auh. 2006. “Creating a Firm-Level Dynamic Capability through Capitalizing on Market Orientation and Innovativeness.” Journal Of the Academy of Marketing Science 34 (1): 63–73.
Mia, L., and B. Clarke. 1999. “Market Competition, Management Accounting Systems and Business Unit Performance.” Management Accounting Research 10 (2): 137–58.
Miller, D. 1988. “Relating Porter’s Business Strategies to Environment and Structure: Analysis and Performance Implications.” Academy of Management Journal 31: 280–308.
Miller, D., and P. Friesen. 1982. Strategic Management Journal 3 (null): 1.
Miller, D., and P. H. Friesen. 1983. “Strategy-Making and the Environment: The Third Link.” Srategic Management Journal 3 (4): 221–35.
Naman, J. L., and D. P. Slevin. 1993. “Entrepreneurship and the Concept of Fit: A Model and Empirical Tests.” Strategic Management Journal 14: 137–54.
Nandakumar, M. K., A. Ghobadian, and N. O’Regan. 2010. “Business-Level Strategy and Performance: The Moderating Effects of Environment and Structure.” Management Decision 48 (6): 907–39.
Núñez-Pomar, J., V. Prado-Gascó, V. Añó Sanz, J. Crespo Hervás, and F. CalabuigMoreno. 2016. “Does Size Matter? Entrepreneurial Orientation and Performance in Spanish Sports Firms.” Journal of Business Research 69: 5336–41.
Podsakoff, P. M., S. B. MacKenzie, J.-Y. Lee, and N. P. Podsakoff. 2003. “Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies.” Journal of Applied Psychology 88 (5): 879–903.
Podsakoff, P. M., and D. W. Organ. 1986. “Self-Reports in Organizational Research: Problems and Prospects.” Journal of Management 12 (2): 531–44.
Ratten, V., and Tajeddini, K. 2018. “Women’s Entrepreneurship and Internationalization: Patterns and Trends.” International Journal of Sociology and Social Policy 38 (9/10).
Rauch, A., J. Wiklund, G. T. Lumpkin, and M. Frese. 2009. “Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future.” Entrepreneurship Theory and Practice 33 (3): 761–87.
Saeed, S., S Yousafzai, and A. Engelen. 2014. “On Cultural and Economic Contingencies of the Entrepreneurial Orientation-Performance Relationship.” Entrepreneurship Theory and Practice 38 (4): 255–90.
Scott, R. W. 1981. Organizations: Rational, Natural & Open Systems. Englewood Cliffs, NJ.: Prentice-Hall, Inc.
Semrau, T., T. Ambos, and S. Kraus. 2016. “Entrepreneurial Orientation and SME Performance across Societal Cultures: An International Study.” Journal of Business Research 69: 1928–32.
Shan, P., M. Song, and X. Jua. 2016. “Entrepreneurial Orientation and Performance: Is Innovation Speed a Missing Link?” Journal of Business Research 69: 683–90.
Simerly, R. L., and M. Li. 2002. “Environmental Dynamism, Capital Structure and Innovation: An Empirical Test. The International Journal of Organizational Analysis.” The International Journal of Organizational Analysis 10 (2): 155–70.
Sohi, R. S. 1996. “The Effects of Environmental Dynamism and Heterogeneity on Salespeople’s Role Perceptions, Performance and Job Satisfaction.” European Journal of Marketing 30 (7): 49–67.
Steinhoff, D., and Burgess, J. F. 1993. Small Business Management Fundamentals. New York-USA: McGraw-Hill, Inc.
Tajeddini, K. 2015. “Exploring the Antecedents of Effectiveness and Efficiency.” International Journal of Hospitality Management 49 (7): 125–35.
Tajeddini, K. 2016. “Financial Orientation, Product Innovation and Firm Performance: An Empirical Study in the Japanese SMEs.” International Journal of Innovation and Technology Management 35 (2): 1–23.
Tajeddini, K., U. Elg, and M. Truaman. 2013. “Efficiency and Effectiveness of Small Retailers: The Role of Customer and Entrepreneurial Orientation.” Journal of Retailing and Consumer Services 20 (6): 453–62.
Tajeddini, K., and S. Mueller. 2009. “Entrepreneurial Characteristics in Switzerland and the UK: A Comparative Study of Techno-Entrepreneurs.” Journal of International Entrepreneurship 7 (1): 1–25.
Tajeddini, K., and S. L. Mueller. 2012. “Corporate Entrepreneurship in Switzerland: Evidence from a Case Study of Swiss Watch Manufacturers.” International Entrepreneurship and Management Journal 8 (3): 355–72.
Tajeddini, K., and M. Trueman. 2016. “Environment-Strategy and Alignment in a Restricted, Transitional Economy: Empirical Research on Its Application to Iranian State-Owned Enterprises.” Long Range Planning 49 (5): 570–83.
Tajeddini, K., Altinay, L., and Ratten, V. 2017. “Service Innovativeness and the Structuring of Organizations: The Moderating Roles of Learning Orientation and Inter-functional Coordination.” International Journal of Hospitality Management 65 (August): 100-14.
Tsai, K.-H., and S. Y. Yang. 2014. “The Contingent Value of Firm Innovativeness for Business Performance under Environmental Turbulence.” International Entreprenurship Management Journal 10 (2): 343–66.
van Doorn, S., M. L. M. Heyden, and H. W. Volberda. 2017. “Enhancing Entrepreneurial Orientation in Dynamic Environments: The Interplay between Top Management Team Advice-Seeking and Absorptive Capacity.” Long Range Planning 50, no. 2 (April): 134–44.
Venkatraman, N. 1989. “Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement.” Management Science 35 (8): 42–62.
Wiklund, J. 1999. “The Sustainability of the Entrepreneurial Orientation-Performance Relationship.” Entrepreneurship Theory and Practice 24 (1): 39-50.
Zahra, S. A., and J. Covin. 1995. “Contextual Influences on the Corporate Entrepreneurship—Company Performance Relationship in Established Firms: A Longitudinal Analysis.” Journal of Business Venturing 10: 43–58.
Positioned as the premier research journal within the field of entrepreneurship, the Entrepreneurship Research Journal (ERJ) is a forum for scholarly discussion on entrepreneurs and their activities, contexts, processes, strategies and outcomes. It seeks to encourage a scholarly exchange between researchers from any field of study who focus on entrepreneurs and includes both theoretical and empirical articles.
01 Jan 2011
Theodore Alter, Mathew Hughes, Rania Labaki, Thomas Lyons, Chandra Mishra, Michael Mustafa and Ramona K. Zachary