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Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model

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  • Dayan, Mumin
  • Ng, Poh Yen
  • Husain, Zafar
  • Zacca, Robert

Abstract

The study examines the interaction effects of constructive politics and market turbulence on the entrepreneurial orientation–performance relationship. The proposed structural model tests the mediating role of constructive politics between the entrepreneurial orientation and performance constructs and the moderation effect of market turbulence on this mediating relationship. Data were collected from 145 small and medium-sized enterprises (SMEs) in the United Arab Emirates. The results suggest that entrepreneurial orientation indirectly affects performance through constructive politics. Furthermore, the results indicate that the relationship between constructive politics and the firm's performance was stronger during low market turbulence. Findings suggest that entrepreneurial-oriented SMEs should embrace constructive politics where influence and power can be channeled to enhance financial performance, especially in market stability.

Suggested Citation

  • Dayan, Mumin & Ng, Poh Yen & Husain, Zafar & Zacca, Robert, 2023. "Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model," European Management Journal, Elsevier, vol. 41(3), pages 385-394.
    • Handle: RePEc:eee:eurman:v:41:y:2023:i:3:p:385-394
    DOI: 10.1016/j.emj.2022.03.001
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