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Entrepreneurial Orientation and the Performance of Religious Congregations as Predicted by Rational Choice Theory

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  • John A. Pearce II
  • David A. Fritz
  • Peter S. Davis

Abstract

Empirical and anecdotal evidence suggests that businesses that act with an entrepreneurial orientation enjoy superior performance. Our research investigates whether nonprofit, religious congregations can benefit from similar initiatives. We based our hypotheses on the Rational Choice Theory of Religion, which was developed by social scientists to bring economic analysis to the understanding of the effects of competition among nonprofit organizations. Using a sample of 250 religious congregations in five different geographical markets, an entrepreneurial orientation is found to be positively associated with organizational performance. A hypothesized interaction effect between environmental munificence and entrepreneurial orientation is assessed.

Suggested Citation

  • John A. Pearce II & David A. Fritz & Peter S. Davis, 2010. "Entrepreneurial Orientation and the Performance of Religious Congregations as Predicted by Rational Choice Theory," Entrepreneurship Theory and Practice, , vol. 34(1), pages 219-248, January.
    • Handle: RePEc:sae:entthe:v:34:y:2010:i:1:p:219-248
    DOI: 10.1111/j.1540-6520.2009.00315.x
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