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Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance

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  • Patrick Kreiser
  • Louis Marino
  • Donald Kuratko

    ()

  • K. Weaver
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    Abstract

    Previous studies have generally established a positive relationship between aggregated measures of entrepreneurial orientation (EO) and firm performance. However, there are theoretical reasons suggesting that three dimensions of EO (innovativeness, proactiveness, and risk-taking) may possess differential relationships with performance in smaller firms. This study utilizes a sample consisting of 1,668 small-to-medium sized enterprises (SMEs) in nine countries across 13 different industries to provide a finer-grained analysis of the EO-performance relationship. Specifically, we theorize and test a non-monotonic influence of innovativeness, proactiveness, and risk-taking on SME performance. Innovativeness and proactiveness displayed predominantly positive U-shaped relationships with SME performance. Risk-taking, however, displayed a predominantly negative U-shaped relationship with SME performance. Further, individualism was found to positively moderate the relationships between innovativeness-performance and proactiveness-performance. Taken together, these results suggest that differential relationships exist between three dimensions of EO and SME performance, with important theoretical implications for future EO research. Copyright Springer Science+Business Media New York 2013

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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 40 (2013)
    Issue (Month): 2 (February)
    Pages: 273-291

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    Handle: RePEc:kap:sbusec:v:40:y:2013:i:2:p:273-291

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    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: Entrepreneurial orientation; Innovativeness; Proactiveness; Risk-taking; Individualism; Small-and-medium sized enterprises (SMEs); L26; L25;

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    References

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