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Entrepreneurial Orientation and Business Performance – A Replication Study

Author

Listed:
  • Frank Hermann
  • Alexander Kessler
  • Matthias Fink

Abstract

We examine the effect of entrepreneurial orientation (EO) and hypothesize that EO has a positive impact on business performance. We create a contingency model and a configuration model and compare their results to those derived from a main-effects model. The study replicates the work of Wiklund and Shepherd (2005) and tests the validity of their results in a different national context. Our analysis indicates a positive connection between EO and business performance only in cases in which a dynamic environment is combined with high access to financial capital and when a stable environment is combined with low access to financial capital. Our analysis also indicates that EO may have a negative effect on performance in certain configurations.

Suggested Citation

  • Frank Hermann & Alexander Kessler & Matthias Fink, 2010. "Entrepreneurial Orientation and Business Performance – A Replication Study," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(2), pages 175-198, April.
    • Handle: RePEc:sbr:abstra:v:62:y:2010:i:2:p:175-198
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    Citations

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    Cited by:

    1. Shirokova, G. & Puffer, S.M. & Bogatyreva, K. & Beliaeva, T., 2015. "Entrepreneurial orientation in different environmental settings: A comparative cross-country study," Working Papers 6416, Graduate School of Management, St. Petersburg State University.
    2. Rafał Kusa, 2016. "Measuring Entrepreneurial Orientation in the Social Context," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 117-129.
    3. Neneh Brownhilder, 2017. "Examining the Moderating Effect of Environmental Hostility on the Entrepreneurial Orientation -Performance Relationship," Journal of Economics and Behavioral Studies, AMH International, vol. 8(6), pages 6-18.
    4. Lie Heng & Nur Afifah, 2020. "Entrepreneurial Orientation for Enhancement of Marketing Performance," International Review of Management and Marketing, Econjournals, vol. 10(3), pages 46-53.
    5. Manrique Hernández-Ramírez & Ronald Mora-Esquivel & Juan Carlos Leiva, 2022. "Orientación emprendedora y desempeno innovador en mipymes. El rol moderador de la orientación estratégica," Estudios Gerenciales, Universidad Icesi, vol. 38(162), pages 95-108, March.
    6. Weismeier-Sammer, Daniela, 2011. "Entrepreneurial behavior in family firms: A replication study," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 128-138.
    7. 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.
    8. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    9. Galina Shirokova & Karina Bogatyreva & Tatiana Beliaeva, 2015. "Entrepreneurial Orientation of Russian Firms: The Role of External Environment," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(3), pages 6-25.
    10. Hermann Frank & Alexander Kessler & Thomas Rusch & Julia Suess–Reyes & Daniela Weismeier–Sammer, 2017. "Capturing the Familiness of Family Businesses: Development of the Family Influence Familiness Scale (FIFS)," Entrepreneurship Theory and Practice, , vol. 41(5), pages 709-742, September.
    11. Gartner, Johannes & Fink, Matthias & Floh, Arne & Eggers, Fabian, 2021. "Service quality in social media communication of NPOs: The moderating effect of channel choice," Journal of Business Research, Elsevier, vol. 137(C), pages 579-587.
    12. 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.
    13. Halilu Bello Rogo & Halilu Bello Rogo & Mohd Noor Mohd. Shariff & Muhammad Haroon Hafeez, 2017. "Moderating Effect of Access to Finance on the Relationship between Total Quality Management, Market Orientation and Small and Medium Enterprises Performance: A Proposed Framework," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 119-127.
    14. 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.
    15. Wiener, Melanie & Gattringer, Regina & Strehl, Franz, 2020. "Collaborative open foresight - A new approach for inspiring discontinuous and sustainability-oriented innovations," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    16. MwamishaD. Mkala & Kenneth L. Wanjau & TeresiaN. Kyalo, 2018. "Operations Management and Performance of Manufacturing Small and Medium Enterprises in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 7(2), pages 01-13, April.
    17. Dr. Gilbert Mugambi Miriti, Ph.D., 2021. "Entrepreneurial Orientation and the Performance of Youth Owned Funded Small and Medium Enterprises (SMEs) in Chuka Town (Tharaka-Nithi County) Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(5), pages 120-127, May.
    18. Juan Pablo Diánez-González & Carmen Camelo-Ordaz & Mariluz Fernández-Alles, 2021. "Drivers and implications of entrepreneurial orientation for academic spin-offs," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 1007-1035, June.
    19. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    20. Pejman Ebrahimi & Seyed Mozaffar Mirbargkar, 2017. "Green entrepreneurship and green innovation for SME development in market turbulence," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(2), pages 203-228, August.
    21. David KOVACS & Katrin ZULAUF & Taylan ÃœRKMEZ & Dominik BROCKHAUS & Ralf WAGNER, 2016. "Linking Entrepreneurial Orientation to Firm Performance in a Post-Socialist Market Context: the Case of Hungary," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 4(4), pages 571-589, December.
    22. Milovanović Bojan Morić & Bubaš Zoran & Mikić Mihaela, 2021. "Entrepreneurial Orientation, Strategic Networking, and Croatian SMEs Performance: A Configurational Approach," Business Systems Research, Sciendo, vol. 12(2), pages 236-252, December.
    23. Rodney C. Runyan & Baoshan Ge & Baobao Dong & Jane L. Swinney, 2012. "Entrepreneurial Orientation in Cross–Cultural Research: Assessing Measurement Invariance in the Construct," Entrepreneurship Theory and Practice, , vol. 36(4), pages 819-836, July.
    24. Dobrota Gabriela, 2014. "The Development Of The Sme Sector – Fundament And Necessity For Sustainable Relauching Of The Economic Activity In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 471-475, May.
    25. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2014. "The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth," Small Business Economics, Springer, vol. 43(1), pages 39-55, June.

    More about this item

    Keywords

    Business Performance; Configurational Approach; Entrepreneurial Orientation; SMEs.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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