IDEAS home Printed from https://ideas.repec.org/a/kap/jinten/v16y2018i3d10.1007_s10843-018-0235-6.html
   My bibliography  Save this article

Firm-level entrepreneurship and international performance: A simultaneous examination of orientation and action

Author

Listed:
  • Mojtaba Hosseini

    (Linkoping University)

  • Hossein Dadfar

    (Linkoping University)

  • Staffan Brege

    (Linkoping University)

Abstract

Relying on the resource-based view and contingency analysis, this study aims to investigate the relationship between firm-level entrepreneurship (FLE) and international performance among Iranian small and medium-sized enterprises (SMEs). The environment is considered as a moderating factor which enables us to discuss the results more precisely. To draw a more holistic picture of entrepreneurship in existing companies, both orientation and action are included in the research model. A survey study of 140 SMEs using a partial least squares structural equation modelling analysis demonstrated a negative effect of entrepreneurial orientation (EO) on international performance, but a positive impact for corporate entrepreneurship (CE). Environmental dynamism (ED) appeared as an insignificant moderator, while environmental hostility (EH) significantly moderated the effect of EO on international performance. The unexpected results of this study, especially in the case of EO, add new insights on the FLE research of smaller companies. When SMEs are performing in a business network, cooperation becomes the priority, and any type of opportunistic behaviour which harms the trust weakens their collective performance.

Suggested Citation

  • Mojtaba Hosseini & Hossein Dadfar & Staffan Brege, 2018. "Firm-level entrepreneurship and international performance: A simultaneous examination of orientation and action," Journal of International Entrepreneurship, Springer, vol. 16(3), pages 338-368, September.
  • Handle: RePEc:kap:jinten:v:16:y:2018:i:3:d:10.1007_s10843-018-0235-6
    DOI: 10.1007/s10843-018-0235-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10843-018-0235-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10843-018-0235-6?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. María Ripollés-Meliá & Martina Menguzzato-Boulard & Luz Sánchez-Peinado, 2007. "Entrepreneurial orientation and international commitment," Journal of International Entrepreneurship, Springer, vol. 5(3), pages 65-83, December.
    2. Zeki Simsek & John F. Veiga & Michael H. Lubatkin, 2007. "The Impact of Managerial Environmental Perceptions on Corporate Entrepreneurship: Towards Understanding Discretionary Slack's Pivotal Role," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1398-1424, December.
    3. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    4. Nathaniel Boso & Pejvak Oghazi & Magnus Hultman, 2017. "International entrepreneurial orientation and regional expansion," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(1-2), pages 4-26, January.
    5. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    6. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    7. Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, vol. 6(4), pages 259-285, July.
    8. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 2017. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 717-737, September.
    9. Liu, Yi & Li, Yuan & Xue, Jiaqi, 2011. "Ownership, strategic orientation and internationalization in emerging markets," Journal of World Business, Elsevier, vol. 46(3), pages 381-393, July.
    10. Robertson, Christopher & Chetty, Sylvie K., 2000. "A contingency-based approach to understanding export performance," International Business Review, Elsevier, vol. 9(2), pages 211-235, April.
    11. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    12. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    13. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    14. Gholamhossein Hosseininia & Ali Ramezani, 2016. "Factors Influencing Sustainable Entrepreneurship in Small and Medium-Sized Enterprises in Iran: A Case Study of Food Industry," Sustainability, MDPI, vol. 8(10), pages 1-20, October.
    15. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    16. Lianxi Zhou & Wei-ping Wu & Xueming Luo, 2007. "Internationalization and the performance of born-global SMEs: the mediating role of social networks," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 673-690, July.
    17. Shaker A. Zahra & Donald O. Neubaum & Morten Huse, 1997. "The Effect of the Environment on Export Performance among Telecommunications New Ventures," Entrepreneurship Theory and Practice, , vol. 22(1), pages 25-46, October.
    18. Javalgi, Rajshekhar (Raj) G. & Todd, Patricia R., 2011. "Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India," Journal of Business Research, Elsevier, vol. 64(9), pages 1004-1010, September.
    19. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
    20. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    21. 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.
    22. Song, Geunhye & Min, Sujin & Lee, Seungmin & Seo, Yongseok, 2017. "The effects of network reliance on opportunity recognition: A moderated mediation model of knowledge acquisition and entrepreneurial orientation," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 98-107.
    23. Mthanti, Thanti & Ojah, Kalu, 2017. "Entrepreneurial orientation (EO): Measurement and policy implications of entrepreneurship at the macroeconomic level," Research Policy, Elsevier, vol. 46(4), pages 724-739.
    24. Dimitratos, Pavlos & Lioukas, Spyros & Carter, Sara, 2004. "The relationship between entrepreneurship and international performance: the importance of domestic environment," International Business Review, Elsevier, vol. 13(1), pages 19-41, February.
    25. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    26. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    27. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    28. Charmaine Glavas & Shane Mathews & Constanza Bianchi, 2017. "International opportunity recognition as a critical component for leveraging Internet capabilities and international market performance [Reconocimiento de oportunidad internacional como un componen," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 1-35, March.
    29. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    30. Hansen, John D. & Deitz, George D. & Tokman, Mert & Marino, Louis D. & Weaver, K. Mark, 2011. "Cross-national invariance of the entrepreneurial orientation scale," Journal of Business Venturing, Elsevier, vol. 26(1), pages 61-78, January.
    31. Jeffrey G. Covin & Morgan P. Miles, 1999. "Corporate Entrepreneurship and the Pursuit of Competitive Advantage," Entrepreneurship Theory and Practice, , vol. 23(3), pages 47-63, April.
    32. Jeffrey E. Stambaugh & John Martinez & G. T. Lumpkin & Niyati Kataria, 0. "How well do EO measures and entrepreneurial behavior match?," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    33. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    34. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    35. Daphne W Yiu & ChungMing Lau & Garry D Bruton, 2007. "International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 519-540, July.
    36. 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.
    37. Knight, Gary A., 1997. "Cross-cultural reliability and validity of a scale to measure firm entrepreneurial orientation," Journal of Business Venturing, Elsevier, vol. 12(3), pages 213-225, May.
    38. Robert A. Burgelman, 1983. "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, INFORMS, vol. 29(12), pages 1349-1364, December.
    39. 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.
    40. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    41. Yigang Pan & Shaomin Li & David K Tse, 1999. "The Impact of Order and Mode of Market Entry on Profitability and Market Share," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 81-103, March.
    42. Hornsby, Jeffrey S. & Kuratko, Donald F. & Shepherd, Dean A. & Bott, Jennifer P., 2009. "Managers' corporate entrepreneurial actions: Examining perception and position," Journal of Business Venturing, Elsevier, vol. 24(3), pages 236-247, May.
    43. Shaker A Zahra, 2005. "A theory of international new ventures: a decade of research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 20-28, January.
    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. Anders Pehrsson, 2019. "When are innovativeness and responsiveness effective in a foreign market?," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 19-40, March.
    2. Ambreen Khursheed & Faisal Mustafa & Maham Fatima & Faiza Siddique, 2018. "Entrepreneurial Intentions: Gem Based Emipirical Analysis On The Northern Europe And Asian Countries," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 6(2), pages 59-70, December.
    3. Dirk De Clercq & Eugene Kaciak & Narongsak (Tek) Thongpapanl, 2023. "Full circle support: unpacking the relationship between women entrepreneurs’ family-to-work support and work interference with family," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 343-367, March.
    4. Williams, David W. & Crook, T. Russell, 2021. "Unpacking the age at initial internationalization-performance relationship: A meta-analytic investigation," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    5. Ángela González-Moreno & Pablo Ruiz-Palomino & Francisco J. Sáez-Martínez, 2019. "Can CEOs’ Corporate Social Responsibility Orientation Improve Firms’ Cooperation in International Scenarios?," Sustainability, MDPI, vol. 11(24), pages 1-14, December.
    6. Hamid Etemad, 2019. "Revisiting interactions of entrepreneurial, marketing, and other orientations with internationalization strategies," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 1-18, March.

    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. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    2. Gupta, Rakesh & Pandey, Ritesh & Sebastian, V.J., 2021. "International Entrepreneurial Orientation (IEO): A bibliometric overview of scholarly research," Journal of Business Research, Elsevier, vol. 125(C), pages 74-88.
    3. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    4. Dimitratos, Pavlos & Lioukas, Spyros & Carter, Sara, 2004. "The relationship between entrepreneurship and international performance: the importance of domestic environment," International Business Review, Elsevier, vol. 13(1), pages 19-41, February.
    5. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    6. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    7. 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.
    8. Felipe Hernández-Perlines & Manuel Alejandro Ibarra Cisneros, 2018. "The Role of Environment in Sustainable Entrepreneurial Orientation. The Case of Family Firms," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    9. 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.
    10. 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.
    11. Nida Nazar & Sara Ravan Ramzani & Temoor Anjum & Imran Ahmed Shahzad, 2018. "Impact of Entrepreneurial Orientation of Bank Performance in Pakistan," Business Management and Strategy, Macrothink Institute, vol. 9(1), pages 290-309, December.
    12. Vincenza Odorici & Manuela Presutti, 2013. "The entrepreneurial experience and strategic orientation of high-tech born global start-ups: An analysis of novice and habitual entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 268-291, September.
    13. Lennart Burger & Ivana Blažková, 2020. "Internal Determinants Promoting Corporate Entrepreneurship in Established Organizations: A Systematic Literature Review," Central European Business Review, Prague University of Economics and Business, vol. 2020(2), pages 19-45.
    14. Antonio Rodríguez-Peña, 2021. "Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-27, December.
    15. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    16. Santos-Álvarez, Valle & García-Merino, Teresa, 2010. "The role of the entrepreneur in identifying international expansion as a strategic opportunity," International Journal of Information Management, Elsevier, vol. 30(6), pages 512-520.
    17. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    18. Anna Vuorio & Lasse Torkkeli & Liisa-Maija Sainio, 2020. "Service innovation and internationalization in SMEs: antecedents and profitability outcomes," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 92-123, March.
    19. Hamid Etemad, 2019. "Revisiting interactions of entrepreneurial, marketing, and other orientations with internationalization strategies," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 1-18, March.
    20. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.

    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:kap:jinten:v:16:y:2018:i:3:d:10.1007_s10843-018-0235-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.