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Effectual control orientation and innovation performance: clarifying implications in the corporate context

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  • Sebastian Markus Szambelan

    (ESCP Europe)

  • Yi Dragon Jiang

    (ESCP Europe)

Abstract

This study aims to assess the relationship between effectual control orientation (ECO) and a firm’s innovation performance, with entrepreneurial orientation (EO) as a mediator, in a corporate context. Based on data from 157 established corporations in Germany, the findings indicate that ECO has a positive effect on innovation performance. The study also shows that EO’s behavioral dimension (i.e., innovation and proactiveness), rather than risk-taking, acts as a mediating mechanism between ECO and innovation performance. The empirical results provide theoretical and managerial implications for innovation, effectuation, and EO literatures.

Suggested Citation

  • Sebastian Markus Szambelan & Yi Dragon Jiang, 2020. "Effectual control orientation and innovation performance: clarifying implications in the corporate context," Small Business Economics, Springer, vol. 54(3), pages 865-882, March.
  • Handle: RePEc:kap:sbusec:v:54:y:2020:i:3:d:10.1007_s11187-019-00156-7
    DOI: 10.1007/s11187-019-00156-7
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    More about this item

    Keywords

    Effectual control orientation; Entrepreneurial orientation; Innovation performance; Entrepreneurial behavior;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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