IDEAS home Printed from https://ideas.repec.org/a/jfr/rwe111/v10y2019i2p20-25.html
   My bibliography  Save this article

The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link

Author

Listed:
  • Firdaus Basbeth
  • Ainon Ramli
  • Muhammad Ashlyzan Bin Razik
  • Rosmaizura Mohd Zain
  • Noorshella Bin Che Nawi

Abstract

Despite the increase market in catering industry by 37% per year, the number of SME-catering service firms is only 30.000, or only 5% from the total number of SME in 2016. From 30,000 registered catering service company, only 10% is an active business with annual growth rate (3%). In order to achieve competitive advantage and growth, firms will develop appropriate competitive strategy, strategy which directly relate to firm performance. The purpose of this paper is to develop a better understanding of the relationship between competitive strategy and firm performance in a different entrepreneurial orientation (EO) dimension. The statistical results revealed a) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between differentiation strategy and firm performance b) innovativeness, risk taking and proactivenss were found to have a significant and positive moderating effect on the relationship between CL strategy and firm performance.

Suggested Citation

  • Firdaus Basbeth & Ainon Ramli & Muhammad Ashlyzan Bin Razik & Rosmaizura Mohd Zain & Noorshella Bin Che Nawi, 2019. "The Role of Multi Dimensional EO in the Competitive Strategy - Performance Link," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 20-25, July.
    • Handle: RePEc:jfr:rwe111:v:10:y:2019:i:2:p:20-25
    DOI: 10.5430/rwe.v10n2p20
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/15863/9865
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/rwe/article/view/15863
    Download Restriction: no
    File URL: https://libkey.io/10.5430/rwe.v10n2p20?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    2. Per Davidsson & Frédéric Delmar & Johan Wiklund, 2006. "Entrepreneurship and the Growth of Firms," Books, Edward Elgar Publishing, number 3971.
    3. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    4. Gregory G. Dess & G. T. Lumpkin & J. G. Covin, 1997. "Entrepreneurial strategy making and firm performance: tests of contingency and configurational models," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 677-695, October.
    5. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    6. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    7. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    8. Green, Kimberly M. & Covin, Jeffrey G. & Slevin, Dennis P., 2008. "Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure-style fit," Journal of Business Venturing, Elsevier, vol. 23(3), pages 356-383, May.
    9. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892801, HAL.
    10. Frédéric Delmar & Johan Wiklund & Per Davidsson, 2006. "Entrepreneurship and the Growth of Firms," Post-Print hal-01892798, HAL.
    11. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    12. Joern Block & Karsten Kohn & Danny Miller & Katrin Ullrich, 2015. "Necessity entrepreneurship and competitive strategy," Small Business Economics, Springer, vol. 44(1), pages 37-54, January.
    13. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    14. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    15. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmad Raflis Che Omar & Mohd Yahya Mohd Hussin & Fidlizan Muhammad, 2019. "Assessing Strategic Orientation and Mosques Performance," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 30-35, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    2. Schweiger, & Baldauf,, 2016. "„Entrepreneurial Orientation“: Eine Bestandsaufnahme der Konstruktschärfe," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(4), pages 423-447.
    3. Vishal K. Gupta & William J. Wales, 2017. "Assessing Organisational Performance Within Entrepreneurial Orientation Research: Where Have We Been and Where Can We Go from Here?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(1), pages 51-76, March.
    4. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    5. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    6. Hasyim & Sahyar & Mahmud, 2017. "Isolating Mechanism as a Mean to Improve Performance of SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 594-612.
    7. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    8. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    9. Yan Ling & María Concepción López-Fernández & Ana María Serrano-Bedia & Franz W. Kellermanns, 2020. "Organizational culture and entrepreneurial orientation: examination through a new conceptualization lens," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 709-737, June.
    10. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    11. Jeffrey G. Covin & William J. Wales, 2019. "Crafting High-Impact Entrepreneurial Orientation Research: Some Suggested Guidelines," Entrepreneurship Theory and Practice, , vol. 43(1), pages 3-18, January.
    12. Chabaud, Didier & Sattin, Jean-François, 2019. "Back to the roots! Testing Miller's entrepreneurial orientation construct using Sono-Leontief conditions," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    13. Gabriel Linton, 2019. "Innovativeness, risk-taking, and proactiveness in startups: a case study and conceptual development," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-21, December.
    14. Shathees Baskaran & Rohaida Basiruddin & Siti Zaleha Abdul Rasid & Haliyana Khalid & Tan Sui Hong, 2018. "Resource and Time Availability: An Imperious Stimulus for Entrepreneurial Orientation?," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(2), pages 244-261, February.
    15. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    16. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.
    17. Lim Euncheon & Kim Dohyeon, 2020. "Entrepreneurial Orientation and Performance in South Korea: The Mediating Roles of Dynamic Capabilities and Corporate Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 10(3), pages 1-18, July.
    18. Danny Miller, 2011. "Miller (1983) Revisited: A Reflection on EO Research and Some Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 35(5), pages 873-894, September.
    19. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    20. Kollmann, Tobias & Stöckmann, Christoph & Niemand, Thomas & Hensellek, Simon & de Cruppe, Katharina, 2021. "A configurational approach to entrepreneurial orientation and cooperation explaining product/service innovation in digital vs. non-digital startups," Journal of Business Research, Elsevier, vol. 125(C), pages 508-519.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:rwe111:v:10:y:2019:i:2:p:20-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gina Perry (email available below). General contact details of provider: http://rwe.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.