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Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance

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  • Wassim J. Aloulou

    (Business Administration Department, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University, Riyadh 5701, Saudi Arabia)

Abstract

This research seeks to investigate the relationship between entrepreneurial orientation dimensions (behavioral dimension EOBD and attitudinal dimension EOAD) and firm performance (FP) through a sequential mediation model of innovation capability (IC) and firm resilience capability (FRC) in a specific context. Sample data for this study were collected using a questionnaire survey from 225 randomly selected SMEs in Saudi Arabia and analyzed using structural equation modeling. The results revealed that there are significant relationships between EO dimensions and IC. No direct relationships were found between EO dimensions and FRC or between EOAD and FP. Therefore, IC plays a mediating role in the relationships between EO dimensions and FRC. In addition, FRC does not play a mediating role in the relationships between EO dimensions and FP. On the contrary, it plays a partial mediation between IC and FP. To our knowledge, little research has investigated simultaneously the effects of EO, IC, FRC and FP in the Saudi context. Our study contributes to the literature on entrepreneurship, innovation and resilience by providing new empirical evidence. It also contributes to managerial practices by displaying the importance of translating strategic EO dimensions into performance outcomes through IC and FRC.

Suggested Citation

  • Wassim J. Aloulou, 2023. "Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance," Administrative Sciences, MDPI, vol. 13(7), pages 1-17, July.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:7:p:168-:d:1198772
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    1. 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.
    2. 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.
    3. Mohammed A. Al-Hakimi & Deleep B. Borade, 2020. "The impact of entrepreneurial orientation on the supply chain resilience," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1847990-184, January.
    4. 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.
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    1. Thamir H. Alaskar & Amin K. Alsadi & Wassim J. Aloulou & Faouzi M. Ayadi, 2024. "Big Data Analytics, Strategic Capabilities, and Innovation Performance: Mediation Approach of Organizational Ambidexterity," Sustainability, MDPI, vol. 16(12), pages 1-20, June.

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