IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v20y2024i1d10.1007_s11365-023-00878-x.html
   My bibliography  Save this article

Institutions, innovation and performance in Guangdong firms: The role of entrepreneurial orientation and environmental turbulence

Author

Listed:
  • Claudio Petti

    (University of Salento)

  • Lorenzo Compagnucci

    (University of Macerata)

  • Yongli Tang

    (Jinan University)

Abstract

This study combines the institution-based perspective and the innovation systems literature to examine the role of public policies in the entrepreneurship-innovation-performance relationships. It does so by presupposing a key mediating role for entrepreneurial orientation and by introducing environmental turbulence as a moderator. Data from a sample of 166 Guangdong Province manufacturing firms are used to test hypotheses, which distinguish between institutional pressures and incentives. Findings reveal the lesser relevance of institutional pressures whereas a more virtuous relationship between institutional incentives, entrepreneurial orientation and both innovation and overall performance emerges, especially when environmental turbulence increases. This is particularly clear with reference to firms’ overall performance. These findings are of theoretical and practical relevance for the study of the effects of public policies as regards their nature and the policy design mix.

Suggested Citation

  • Claudio Petti & Lorenzo Compagnucci & Yongli Tang, 2024. "Institutions, innovation and performance in Guangdong firms: The role of entrepreneurial orientation and environmental turbulence," International Entrepreneurship and Management Journal, Springer, vol. 20(1), pages 393-419, March.
    • Handle: RePEc:spr:intemj:v:20:y:2024:i:1:d:10.1007_s11365-023-00878-x
    DOI: 10.1007/s11365-023-00878-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-023-00878-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-023-00878-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard R. Nelson, 1995. "Why should managers be thinking about technology policy?," Strategic Management Journal, Wiley Blackwell, vol. 16(8), pages 581-588.
    2. Alessandra Tognazzo & Paolo Gubitta & Saverio Dave Favaron, 2016. "Does slack always affect resilience? A study of quasi-medium-sized Italian firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(9-10), pages 768-790, October.
    3. Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), 2016. "Handbook of Innovation Policy Impact," Books, Edward Elgar Publishing, number 16121.
    4. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    5. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    6. Sarah Jack & Sarah Drakopoulou Dodd & Alistair R. Anderson, 2008. "Change and the development of entrepreneurial networks over time: a processual perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(2), pages 125-159, March.
    7. 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.
    8. Lucia Naldi & Johan P. Larsson & Hans Westlund, 2020. "Policy entrepreneurship and entrepreneurial orientation in vulnerable Swedish municipalities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(7-8), pages 473-491, August.
    9. Stanley Kam-Sing Wong, 2014. "Impacts of environmental turbulence on entrepreneurial orientation and new product success," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 17(2), pages 229-249, May.
    10. Jakob Edler & Jan Fagerberg, 2017. "Innovation policy: what, why, and how," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 2-23.
    11. Mohammad Falahat & Yan-Yin Lee & Pedro Soto-Acosta & T. Ramayah, 2021. "Entrepreneurial, market, learning and networking orientations as determinants of business capability and international performance: the contingent role of government support," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1759-1780, December.
    12. Johan Wiklund, 1999. "The Sustainability of the Entrepreneurial Orientation—Performance Relationship," Entrepreneurship Theory and Practice, , vol. 24(1), pages 37-48, October.
    13. repec:eme:hppsss:eb018862 is not listed on IDEAS
    14. Gao, Xue, 2021. "The comparative impact of solar policies on entrepreneurship in the U.S. solar photovoltaic installation industry," Energy Policy, Elsevier, vol. 156(C).
    15. Dirk De Clercq & Dimo Dimov & Narongsak (Tek) Thongpapanl, 2013. "Organizational Social Capital, Formalization, and Internal Knowledge Sharing in Entrepreneurial Orientation Formation," Entrepreneurship Theory and Practice, , vol. 37(3), pages 505-537, May.
    16. Matthias Fink & Rainer Harms, 2012. "Contextualizing the relationship between self-commitment and performance: Environmental and behavioural uncertainty in (cross-border) alliances of SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(3-4), pages 161-179, April.
    17. Ciabuschi, Francesco & Baraldi, Enrico & Lindahl, Olof & Callegari, Simone, 2020. "Supporting innovation against the threat of antibiotic resistance: Exploring the impact of public incentives on firm performance and entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 112(C), pages 271-280.
    18. Daniel F. Jennings & Dean M. Young, 1990. "An Empirical Comparison between Objective and Subjective Measures of the Product Innovation Domain of Corporate Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 15(1), pages 53-66, October.
    19. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    20. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    21. Barbieri, Elisa & Di Tommaso, Marco R. & Bonnini, Stefano, 2012. "Industrial development policies and performances in Southern China: Beyond the specialised industrial cluster program," China Economic Review, Elsevier, vol. 23(3), pages 613-625.
    22. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    23. Susan L Young & Christopher Welter & Michael Conger, 2018. "Stability vs. flexibility: The effect of regulatory institutions on opportunity type," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(4), pages 407-441, May.
    24. Erwin Danneels & Rajesh Sethi, 2011. "New Product Exploration Under Environmental Turbulence," Organization Science, INFORMS, vol. 22(4), pages 1026-1039, August.
    25. 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.
    26. Mthanti, Thanti & Ojah, Kalu, 2017. "Entrepreneurial orientation (EO): Measurement and policy implications of entrepreneurship at the macroeconomic level," Research Policy, Elsevier, vol. 46(4), pages 724-739.
    27. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    28. Nemet, Gregory F., 2009. "Demand-pull, technology-push, and government-led incentives for non-incremental technical change," Research Policy, Elsevier, vol. 38(5), pages 700-709, June.
    29. Lingyu Hu & Jibao Gu & Jianlin Wu & Augustine A. Lado, 2018. "Regulatory focus, environmental turbulence, and entrepreneur improvisation," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 129-148, March.
    30. Klaus E Meyer & Mike W Peng, 2016. "Theoretical foundations of emerging economy business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(1), pages 3-22, January.
    31. Chandler, Gaylen N. & Hanks, Steven H., 1993. "Measuring the performance of emerging businesses: A validation study," Journal of Business Venturing, Elsevier, vol. 8(5), pages 391-408, September.
    32. Roper, Stephen & Tapinos, Efstathios, 2016. "Taking risks in the face of uncertainty: An exploratory analysis of green innovation," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 357-363.
    33. repec:taf:entreg:v:23:y:2011:i:3-4:p:89-111 is not listed on IDEAS
    34. José C. Casillas & Ana M. Moreno, 2010. "The relationship between entrepreneurial orientation and growth: The moderating role of family involvement," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(3-4), pages 265-291, May.
    35. Paul Westhead & Mike Wright & Deniz Ucbasaran, 2004. "Internationalization of private firms: environmental turbulence and organizational strategies and resources," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(6), pages 501-522, November.
    36. Claudia Doblinger & Michael Dowling & Roland Helm, 2016. "An institutional perspective of public policy and network effects in the renewable energy industry: enablers or disablers of entrepreneurial behaviour and innovation?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 126-156, January.
    37. Sanjay Goel & Ranjan Karri, 2020. "Entrepreneurial aspirations and poverty reduction: the role of institutional context," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(1-2), pages 91-111, January.
    38. Wassim J. Aloulou, 2018. "Impacts of strategic orientations on new product development and firm performances," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 22(2), pages 257-280, September.
    39. 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.
    40. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    41. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    42. Steven C. Michael & John A. Pearce, 2009. "The need for innovation as a rationale for government involvement in entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(3), pages 285-302, May.
    43. Costantini, Valeria & Crespi, Francesco & Martini, Chiara & Pennacchio, Luca, 2015. "Demand-pull and technology-push public support for eco-innovation: The case of the biofuels sector," Research Policy, Elsevier, vol. 44(3), pages 577-595.
    44. Bruce H. Kemelgor, 2002. "A comparative analysis of corporate entrepreneurial orientation between selected firms in the Netherlands and the USA," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(1), pages 67-87, January.
    45. Simpson, R. David & Bradford, Robert III, 1996. "Taxing Variable Cost: Environmental Regulation as Industrial Policy," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 282-300, May.
    46. Deusdedit Rwehumbiza & Marin A. Marinov, 2020. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 667-689, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonio Rodríguez-Peña, 2023. "Corporate entrepreneurship and firm performance relationship under the moderating effect of environmental dynamism: Replication and extension analysis," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 550-585, December.
    2. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    3. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    4. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    5. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    6. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    7. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    8. Bojan Morić Milovanović & Mirjana Grčić Fabić & Vjekoslav Bratić, 2023. "Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries," Administrative Sciences, MDPI, vol. 13(2), pages 1-19, February.
    9. Tomasz Ingram & Katarzyna Bratnicka-Myśliwiec & Teresa Kraśnicka & Izabella Steinerowska-Streb, 2022. "Entrepreneurial Orientation as a Determinant of Sustainable Performance in Polish Family and Non-Family Organizations," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    10. 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.
    11. Ibrahim MusahDONKOH & Hieu Minh VU & Chijioke NWACHUKWU, 2021. "entrepreneurial orientation and small and medium entreprises profitabiliy in Ghana," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(1), pages 32-43, March.
    12. Hernández-Linares, Remedios & Kellermanns, Franz W. & López-Fernández, María Concepción, 2018. "A note on the relationships between learning, market, and entrepreneurial orientations in family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 9(3), pages 192-204.
    13. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    14. Marcus T. Wolfe & Dean A. Shepherd, 2015. "“Bouncing Back†from a Loss: Entrepreneurial Orientation, Emotions, and Failure Narratives," Entrepreneurship Theory and Practice, , vol. 39(3), pages 675-700, May.
    15. Zhaoyang Guo & Wei Jiang, 2020. "Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 739-781, June.
    16. 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.
    17. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    18. Andrea Calabrò & Rosalia Santulli & Mariateresa Torchia & Carmen Gallucci, 2021. "Entrepreneurial Orientation and Family Firm Performance: The Moderating Role of TMT Identity-Based and Knowledge-Based Faultlines," Entrepreneurship Theory and Practice, , vol. 45(4), pages 838-866, July.
    19. Jintong Tang & Zhi Tang & Birton J. Cowden, 2017. "Exploring the Relationship between Entrepreneurial Orientation, CEO Dual Values, and SME Performance in State–Owned vs. Nonstate–Owned Enterprises in China," Entrepreneurship Theory and Practice, , vol. 41(6), pages 883-908, November.
    20. William Wales & Erik Monsen & Alexander McKelvie, 2011. "The Organizational Pervasiveness of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 35(5), pages 895-923, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:20:y:2024:i:1:d:10.1007_s11365-023-00878-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.