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The relevance of slack resource availability and networking effectiveness for entrepreneurial orientation

Author

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  • Mathew Hughes
  • Fabian Eggers
  • Sascha Kraus
  • Paul Hughes

Abstract

Motivated by the resource-based view of the firm and its Penrose-inspired views on resource orchestration, we seek to disentangle how resource availability might affect the emergence of an entrepreneurial orientation within firms, and how firms might redress the resource absorption effects of EO to enhance firm performance. Using a sample of 607 German small and medium-sized enterprises (SMEs), we investigate: 1) the influence of slack resource availability on the EO of SMEs; 2) the mediating effect of networking effectiveness on the relationship between EO and firm performance; 3) the influence of firm performance on slack resource availability. The results suggest that slack resource availability positively influences EO, networking effectiveness partially mediates the relationship between EO and firm performance, and the firm performance achieved to date positively influences slack resource availability. Our work reconciles EO with the RBV and contributes new knowledge to understand the resource absorption effects and resource refuelling needs contained within the EO-performance relationship - a hitherto ignored consideration.

Suggested Citation

  • Mathew Hughes & Fabian Eggers & Sascha Kraus & Paul Hughes, 2015. "The relevance of slack resource availability and networking effectiveness for entrepreneurial orientation," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 26(1), pages 116-138.
    • Handle: RePEc:ids:ijesbu:v:26:y:2015:i:1:p:116-138
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    Citations

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    Cited by:

    1. Miaomiao Yin & Mathew Hughes & Qilin Hu, 2021. "Entrepreneurial orientation and new venture resource acquisition: why context matters," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1369-1398, December.
    2. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. Mansi Singh & Sanjay Dhir & Harsh Mishra, 2023. "Analysing the Antecedents of Entrepreneurial Bootstrapping and Bricolage: A Modified Total Interpretive Structural Modelling and MICMAC Approach," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 7-38, March.
    4. Lixin Sheng & Jibao Gu & Jianlin Wu, 2023. "How does entrepreneurial orientation influence firm performance? The roles of corporate social responsibility and institutional environments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2021-2036, July.
    5. Moro, Andrea & Maresch, Daniela & Ferrando, Annalisa & Udell, Gregory F., 2022. "Funding innovation and the regulatory environment – The role of employment protection legislation," Journal of Business Research, Elsevier, vol. 145(C), pages 745-756.
    6. Alessandro Zardini & Francesca Ricciardi & Ludovico Bullini Orlandi & Cecilia Rossignoli, 2020. "Business networks as breeding grounds for entrepreneurial options: organizational implications," Review of Managerial Science, Springer, vol. 14(5), pages 1029-1046, October.
    7. Yanyan Li & Yu Gao & Shanxing Gao, 2023. "Organizational slack, entrepreneurial orientation, and corporate political activity: From the behavioral theory of the firm," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    8. José Álvarez‐García & Esther Hormiga‐Pérez & Paul O. Sarango‐Lalangui & María de la Cruz del Río‐Rama, 2022. "Leaders' sustainability competences and small and medium‐sized enterprises outcomes: The role of social entrepreneurial orientation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 927-943, October.
    9. Nikiforou, Argyro Iro & Lioukas, Spyros & Voudouris, Irini, 2020. "Network structure and firm-level entrepreneurial behavior: The role of market and technological knowledge networks," Journal of Business Research, Elsevier, vol. 106(C), pages 129-138.
    10. Bojan Moric Milovanovic & Dinko Primorac & Goran Kozina, 2020. "The impact of strategic networking on business performance of manufacturing SMEs operating in a predominantly service based economy," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 194-207.
    11. Muhammad Anwar & Thomas Clauss & Wunnam Basit Issah, 2022. "Entrepreneurial orientation and new venture performance in emerging markets: the mediating role of opportunity recognition," Review of Managerial Science, Springer, vol. 16(3), pages 769-796, April.
    12. Eggers, Fabian, 2020. "Masters of disasters? Challenges and opportunities for SMEs in times of crisis," Journal of Business Research, Elsevier, vol. 116(C), pages 199-208.

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