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To be different, or to be the same? The interactive effect of organizational regulatory legitimacy and entrepreneurial orientation on new venture performance

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  • Hai Guo
  • Jintong Tang
  • Zhongfeng Su

Abstract

New ventures often encounter a strategic dilemma of whether to differentiate themselves from or to conform to other businesses in the industry. The present study joins this ongoing debate by asking the following question: How will organizational regulatory legitimacy and entrepreneurial orientation (EO) interactively impact new venture performance (NVP) in the context of emerging economies? Drawing on institutional theory, we developed competing hypotheses regarding the interactive impact of organizational regulatory legitimacy and EO on NVP. Employing a dataset of 116 entrepreneurial firms in China, results indicate that although organizational regulatory legitimacy and EO improve NVP independently, their interaction is negatively linked to performance. We derive several implications from these findings in an effort to guide future research. Copyright Springer Science+Business Media New York 2014

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  • Hai Guo & Jintong Tang & Zhongfeng Su, 2014. "To be different, or to be the same? The interactive effect of organizational regulatory legitimacy and entrepreneurial orientation on new venture performance," Asia Pacific Journal of Management, Springer, vol. 31(3), pages 665-685, September.
    • Handle: RePEc:kap:asiapa:v:31:y:2014:i:3:p:665-685
    DOI: 10.1007/s10490-013-9361-9
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    10. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    11. Chenhao Hu, 2023. "The dual role of state shareholders in disclosed corporate misconduct: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1732-1748, April.
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    13. Donbesuur, Francis & Hultman, Magnus & Oghazi, Pejvak & Boso, Nathaniel, 2022. "External knowledge resources and new venture success in developing economies: Leveraging innovative opportunities and legitimacy strategies," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
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