IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v60y2020i2d10.1007_s11575-020-00414-x.html
   My bibliography  Save this article

Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance

Author

Listed:
  • Yen-Chun Chen

    (Chinese Culture University)

  • Ya-Hui Lin

    (Ming Chuan University)

  • Hsien-Tung Tsai

    (National Taipei University)

Abstract

Despite of the importance of entrepreneurial orientation (EO) in international performance, we have yet to obtain sufficient insights into how and why a firm’s EO strengthens international performance. This article focuses on the underlying mechanism through which EO influences international performance, and develops a model of EO → knowledge creation → international venturing, and new product development decision-making flexibility → international performance linkages. Following a survey of 141 Taiwanese electronics firms, the results provide support for our proposed mediating process behind the EO–international performance link. These findings offer several theoretical and practical implications in the entrepreneurship and international business areas.

Suggested Citation

  • Yen-Chun Chen & Ya-Hui Lin & Hsien-Tung Tsai, 2020. "Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance," Management International Review, Springer, vol. 60(2), pages 211-245, April.
  • Handle: RePEc:spr:manint:v:60:y:2020:i:2:d:10.1007_s11575-020-00414-x
    DOI: 10.1007/s11575-020-00414-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-020-00414-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/s11575-020-00414-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. He, Xinming & Wei, Yingqi, 2011. "Linking market orientation to international market selection and international performance," International Business Review, Elsevier, vol. 20(5), pages 535-546, October.
    2. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    3. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    4. 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.
    5. Johan Wiklund & Dean A. Shepherd, 2011. "Where to from Here? EO-as-Experimentation, Failure, and Distribution of Outcomes," Entrepreneurship Theory and Practice, , vol. 35(5), pages 925-946, September.
    6. Danny Miller & Peter H. Friesen, 1978. "Archetypes of Strategy Formulation," Management Science, INFORMS, vol. 24(9), pages 921-933, May.
    7. Farok J Contractor & Sumit K Kundu & Chin-Chun Hsu, 2003. "A three-stage theory of international expansion: the link between multinationality and performance in the service sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 5-18, January.
    8. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    9. Ron Sanchez, 1995. "Strategic flexibility in product competition," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 135-159.
    10. Keith D. Brouthers & George Nakos & Pavlos Dimitratos, 2015. "SME Entrepreneurial Orientation, International Performance, and the Moderating Role of Strategic Alliances," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1161-1187, September.
    11. Homburg, Christian & Stock, Ruth, 2004. "The Link Between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35550, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. 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.
    13. Ruey-Jer (Bryan) Jean & Rudolf R Sinkovics & S Tamer Cavusgil, 2010. "Enhancing international customer–supplier relationships through IT resources: A study of Taiwanese electronics suppliers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1218-1239, September.
    14. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    15. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    16. Lianxi Zhou & Bradley R Barnes & Yuan Lu, 2010. "Entrepreneurial proclivity, capability upgrading and performance advantage of newness among international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 882-905, June.
    17. Martin, Silvia L. & Javalgi, Rajshekhar (Raj) G., 2016. "Entrepreneurial orientation, marketing capabilities and performance: The Moderating role of Competitive Intensity on Latin American International New Ventures," Journal of Business Research, Elsevier, vol. 69(6), pages 2040-2051.
    18. Patrick M. Kreiser & Louis D. Marino & K. Mark Weaver, 2002. "Assessing the Psychometric Properties of the Entrepreneurial Orientation Scale: A Multi-Country Analysis," Entrepreneurship Theory and Practice, , vol. 26(4), pages 71-93, July.
    19. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    20. Mie Augier & David J. Teece, 2009. "Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance," Organization Science, INFORMS, vol. 20(2), pages 410-421, April.
    21. Homburg, Christian & Stock, Ruth, 2004. "The Link between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60486, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    22. 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.
    23. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    24. Nonaka, Ikujiro & Toyama, Ryoko & Nagata, Akiya, 2000. "A Firm as a Knowledge-Creating Entity: A New Perspective on the Theory of the Firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 1-20, March.
    25. Zahra, Shaker A. & Hayton, James C., 2008. "The effect of international venturing on firm performance: The moderating influence of absorptive capacity," Journal of Business Venturing, Elsevier, vol. 23(2), pages 195-220, March.
    26. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    27. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    28. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    29. David J. Ketchen & G. Tomas M. Hult & Stanley F. Slater, 2007. "Toward greater understanding of market orientation and the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 28(9), pages 961-964, September.
    30. Navarro-García, Antonio & Schmidt, Arturo Calvo-Mora & Rey-Moreno, Manuel, 2015. "Antecedents and consequences of export entrepreneurship," Journal of Business Research, Elsevier, vol. 68(7), pages 1532-1538.
    31. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    32. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    33. 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.
    34. Dimitratos, Pavlos & Lioukas, Spyros & Carter, Sara, 2004. "The relationship between entrepreneurship and international performance: the importance of domestic environment," International Business Review, Elsevier, vol. 13(1), pages 19-41, February.
    35. Ruey-Jer “Bryan” Jean & Danchi Tan, 2019. "The Effect of Institutional Capabilities on E-Business Firms’ International Performance," Management International Review, Springer, vol. 59(4), pages 593-616, August.
    36. Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
    37. Kwaku Atuahene-Gima & Anthony Ko, 2001. "An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation," Organization Science, INFORMS, vol. 12(1), pages 54-74, February.
    38. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    39. Luo, Yadong, 2000. "Dynamic capabilities in international expansion," Journal of World Business, Elsevier, vol. 35(4), pages 355-378, January.
    40. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    41. Shan, Peng & Song, Michael & Ju, Xiaofeng, 2016. "Entrepreneurial orientation and performance: Is innovation speed a missing link?," Journal of Business Research, Elsevier, vol. 69(2), pages 683-690.
    42. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    43. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    44. Fernández-Mesa, Anabel & Alegre, Joaquín, 2015. "Entrepreneurial orientation and export intensity: Examining the interplay of organizational learning and innovation," International Business Review, Elsevier, vol. 24(1), pages 148-156.
    45. Kendall Roth & Allen J Morrison, 1990. "An Empirical Analysis of the Integration-Responsiveness Framework in Global Industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(4), pages 541-564, December.
    46. Brian S. Anderson & Patrick M. Kreiser & Donald F. Kuratko & Jeffrey S. Hornsby & Yoshihiro Eshima, 2015. "Reconceptualizing entrepreneurial orientation," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1579-1596, October.
    47. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang Lu & Peixin Zuo & José C. Alves & Jinliang Wang, 2023. "Unlocking the relationship between entrepreneurial orientation and international performance: A systematic review," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 464-504, December.
    2. Ipsmiller, Edith & Dikova, Desislava & Brouthers, Keith D., 2022. "Digital Internationalization of Traditional Firms: Virtual Presence and Entrepreneurial Orientation," Journal of International Management, Elsevier, vol. 28(4).
    3. Gyeongcheol Cho & Christopher Schlaegel & Heungsun Hwang & Younyoung Choi & Marko Sarstedt & Christian M. Ringle, 2022. "Integrated Generalized Structured Component Analysis: On the Use of Model Fit Criteria in International Management Research," Management International Review, Springer, vol. 62(4), pages 569-609, August.

    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. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    2. 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.
    3. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    4. 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.
    5. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    6. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    7. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    8. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    9. Amaya Rivas, Adriana & Chen, Yen-Chun & Yang, Ta-Kai, 2020. "Entrepreneurial and alliance orientation alignment in new product development," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    10. 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.
    11. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.
    12. Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    13. Gupta, Rakesh & Pandey, Ritesh & Sebastian, V.J., 2021. "International Entrepreneurial Orientation (IEO): A bibliometric overview of scholarly research," Journal of Business Research, Elsevier, vol. 125(C), pages 74-88.
    14. Martin, Silvia L. & Javalgi, Rajshekhar (Raj) G., 2016. "Entrepreneurial orientation, marketing capabilities and performance: The Moderating role of Competitive Intensity on Latin American International New Ventures," Journal of Business Research, Elsevier, vol. 69(6), pages 2040-2051.
    15. Byoungho Jin & Sojin Jung & So Won Jeong, 2018. "Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 195-215, March.
    16. Patrick M. Kreiser, 2011. "Entrepreneurial Orientation and Organizational Learning: The Impact of Network Range and Network Closure," Entrepreneurship Theory and Practice, , vol. 35(5), pages 1025-1050, September.
    17. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    18. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.
    19. 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.
    20. Feifei Jiang & Gang Wang & Xu Jiang, 2019. "Entrepreneurial orientation and organizational knowledge creation: A configurational approach," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1193-1219, December.

    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:manint:v:60:y:2020:i:2:d:10.1007_s11575-020-00414-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.