IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v42y2021i6p1619-1637.html
   My bibliography  Save this article

The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth

Author

Listed:
  • Muhammad Sualeh Khattak
  • Rizwan Ullah

Abstract

This study scrutinizes the mediating role of tangible–intangible resources between entrepreneurial orientation and new venture growth. We analyzed the data of 308 Pakistani manufacturing‐SMEs through the AMOS. The results displayed that risk‐taking and innovation significantly while proactive do not influence new venture growth. Risk‐taking, innovativeness, and proactiveness significantly influence tangible–intangible resources. Tangible–intangible resource acquisition does not mediate between risk‐taking and new venture growth; however, it partially mediates between innovativeness and new venture growth and fully mediates between proactiveness and new venture growth. This research recommends owners/managers of new ventures to emphasize entrepreneurial activities to access external resources for survival.

Suggested Citation

  • Muhammad Sualeh Khattak & Rizwan Ullah, 2021. "The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1619-1637, September.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:6:p:1619-1637
    DOI: 10.1002/mde.3331
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3331
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3331?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
    ---><---

    References listed on IDEAS

    as
    1. Wei Yu & Johan Wiklund & Ana Pérez-Luño, 2021. "ADHD Symptoms, Entrepreneurial Orientation (EO), and Firm Performance," Entrepreneurship Theory and Practice, , vol. 45(1), pages 92-117, January.
    2. Zhibin Lin & Xuebing Cao & Ed Cottam, 2020. "International networking and knowledge acquisition of Chinese SMEs: the role of global mind-set and international entrepreneurial orientation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(5-6), pages 449-465, May.
    3. 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.
    4. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    5. Irwin, Kristin C. & Landay, Karen M. & Aaron, Joshua R. & McDowell, William C. & Marino, Louis D. & Geho, Patrick R., 2018. "Entrepreneurial orientation (EO) and human resources outsourcing (HRO): A “HERO” combination for SME performance," Journal of Business Research, Elsevier, vol. 90(C), pages 134-140.
    6. Hunt, Richard A., 2021. "Entrepreneurial orientation and the fate of corporate acquisitions," Journal of Business Research, Elsevier, vol. 122(C), pages 241-255.
    7. Robert Lee & Heinz Tuselmann & Dilani Jayawarna & Julia Rouse, 2019. "Effects of structural, relational and cognitive social capital on resource acquisition: a study of entrepreneurs residing in multiply deprived areas," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(5-6), pages 534-554, May.
    8. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    9. Semrau, Thorsten & Ambos, Tina & Sascha Kraus,, 2016. "Entrepreneurial orientation and SME performance across societal cultures: An international study," Journal of Business Research, Elsevier, vol. 69(5), pages 1928-1932.
    10. Morgan, Robert E. & Strong, Carolyn A., 2003. "Business performance and dimensions of strategic orientation," Journal of Business Research, Elsevier, vol. 56(3), pages 163-176, March.
    11. Sher Zaman Khan & Qing Yang & Abdul Waheed, 2019. "Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 285-295, March.
    12. Jeffrey M. Campbell & Joohyung Park, 2016. "Internal and external resources of competitive advantage for small business success: validation across family ownership," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 27(4), pages 505-524.
    13. Hao-Chen Huang, 2016. "Entrepreneurial resources and speed of entrepreneurial success in an emerging market: the moderating effect of entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 1-26, March.
    14. Chandler, Gaylen N. & Hanks, Steven H., 1994. "Market attractiveness, resource-based capabilities, venture strategies, and venture performance," Journal of Business Venturing, Elsevier, vol. 9(4), pages 331-349, July.
    15. Lin Song & Li Jing, 2017. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 989-1012, December.
    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. Muhammad Anwar & Sher Zaman Khan & Najib Ullah Khan, 2018. "Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(1), pages 63-94, March.
    18. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    19. Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2018. "Entrepreneurs' improvisational behavior and new venture performance: Firm-level and institutional contingencies," Journal of Business Research, Elsevier, vol. 83(C), pages 10-18.
    20. Diane M. Sullivan & Matthew R. Marvel, 2011. "Knowledge Acquisition, Network Reliance, and Early‐Stage Technology Venture Outcomes," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1169-1193, September.
    21. Ko, Eun-Jeong & McKelvie, Alexander, 2018. "Signaling for more money: The roles of founders' human capital and investor prominence in resource acquisition across different stages of firm development," Journal of Business Venturing, Elsevier, vol. 33(4), pages 438-454.
    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. Najib Ullah Khan & Shuangjie Li & Muhammad Nabeel Safdar & Zia Ullah Khan, 2019. "The Role of Entrepreneurial Strategy, Network Ties, Human and Financial Capital in New Venture Performance," JRFM, MDPI, vol. 12(1), pages 1-16, March.
    24. Guowei Li & Zhe Luo & Muhammad Anwar & Yuqiu Lu & Xiantao Wang & Xuening Liu, 2020. "Intellectual capital and the efficiency of SMEs in the transition economy China; Do financial resources strengthen the routes?," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-25, July.
    25. Muslim Amin & Ramayah Thurasamy & Abdullah M. Aldakhil & Aznur Hafeez Bin Kaswuri, 2016. "The effect of market orientation as a mediating variable in the relationship between entrepreneurial orientation and SMEs performance," Nankai Business Review International, Emerald Group Publishing Limited, vol. 7(1), pages 39-59, March.
    26. Muhammad Anwar, 2018. "BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-31, October.
    27. Helena Yli‐Renko & Erkko Autio & Harry J. Sapienza, 2001. "Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 587-613, June.
    28. Zhiyang Liu & Zuhui Xu & Zhao Zhou & Yong Li, 2019. "Buddhist entrepreneurs and new venture performance: the mediating role of entrepreneurial risk-taking," Small Business Economics, Springer, vol. 52(3), pages 713-727, March.
    29. Jiang, Xu & Liu, Heng & Fey, Carl & Jiang, Feifei, 2018. "Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach," Journal of Business Research, Elsevier, vol. 87(C), pages 46-57.
    30. Bing‐Sheng Teng, 2007. "Corporate Entrepreneurship Activities through Strategic Alliances: A Resource‐Based Approach toward Competitive Advantage," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 119-142, January.
    31. Duc Nguyen Nguyen & Quynh-Nhu Tran & Quang-Thai Truong, 2022. "The Ownership Concentration − Innovation Nexus: Evidence From SMEs Around The World," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(5), pages 1288-1307, April.
    32. Thomas Anning-Dorson & Robert Ebo Hinson & Mohammed Amidu & Michael Boadi Nyamekye, 2018. "Enhancing service firm performance through customer involvement capability and innovativeness," Management Research Review, Emerald Group Publishing Limited, vol. 41(11), pages 1271-1289, July.
    33. Unai Arzubiaga & Txomin Iturralde & Amaia Maseda & Josip Kotlar, 2018. "Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 217-244, March.
    34. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    35. 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.
    36. Joseph Amankwah‐Amoah & Albert Danso & Samuel Adomako, 2019. "Entrepreneurial orientation, environmental sustainability and new venture performance: Does stakeholder integration matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 79-87, January.
    37. Gustavo Crespi & Jorge Katz & Jocelyn Olivari, 2018. "Innovation, natural resource-based activities and growth in emerging economies: the formation and role of knowledge-intensive service firms," Innovation and Development, Taylor & Francis Journals, vol. 8(1), pages 79-101, January.
    38. Yoshihiro Eshima & Brian S. Anderson, 2017. "Firm growth, adaptive capability, and entrepreneurial orientation," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 770-779, March.
    39. Mirko H. Benischke & Geoffrey P. Martin & Lotte Glaser, 2019. "CEO equity risk bearing and strategic risk taking: The moderating effect of CEO personality," Strategic Management Journal, Wiley Blackwell, vol. 40(1), pages 153-177, January.
    40. David Kudzaishe Garwe & Olawale Fatoki, 2012. "The impact of gender on SME characteristics and access to debt finance in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 29(3), pages 448-461, September.
    41. 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.
    42. Aasma Memon & Zhang Yong An & Muhammad Qasim Memon, 2020. "Does financial availability sustain financial, innovative, and environmental performance? Relation via opportunity recognition," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 562-575, March.
    43. Ma Degong & Farid Ullah & Muhammad Sualeh Khattak & Muhammad Anwar, 2018. "Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    44. Palmer, Carolin & Niemand, Thomas & Stöckmann, Christoph & Kraus, Sascha & Kailer, Norbert, 2019. "The interplay of entrepreneurial orientation and psychological traits in explaining firm performance," Journal of Business Research, Elsevier, vol. 94(C), pages 183-194.
    45. Qianwei Ying & Hazrat Hassan & Habib Ahmad, 2019. "The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    46. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    47. Kohtamäki, Marko & Heimonen, Jesse & Parida, Vinit, 2019. "The nonlinear relationship between entrepreneurial orientation and sales growth: The moderating effects of slack resources and absorptive capacity," Journal of Business Research, Elsevier, vol. 100(C), pages 100-110.
    48. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.
    49. Suk Bong Choi & Christopher Williams, 2016. "Entrepreneurial orientation and performance: mediating effects of technology and marketing action across industry types," Industry and Innovation, Taylor & Francis Journals, vol. 23(8), pages 673-693, November.
    50. Wu, Lei-Yu, 2007. "Entrepreneurial resources, dynamic capabilities and start-up performance of Taiwan's high-tech firms," Journal of Business Research, Elsevier, vol. 60(5), pages 549-555, May.
    51. Lin Song & Li Jing, 0. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    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. Xihua Yu & Ning Cao & Hao Ren, 2023. "The Impact of Entrepreneurial Orientation on the Sustainable Innovation Capabilities of New Ventures: From the Perspective of Ambidextrous Learning," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    2. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    3. Hui‐Ru Chi & Hsuan‐Pei Ho & Pei‐Kuan Lin, 2022. "Survival strategies of the sharing economy from the pandemic to a new normal: A dynamic capabilities approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3219-3234, October.
    4. Natalia Marulanda-Grisales & José Julián Herrera-Pulgarín & María Lucelly Urrego-Marín, 2024. "Knowledge Management Practices as an Opportunity for the Achievement of Sustainable Development in Social Enterprises of Medellín (Colombia)," Sustainability, MDPI, vol. 16(3), pages 1-23, January.
    5. Jancenelle, Vivien E., 2021. "Tangible−Intangible resource composition and firm success," Technovation, Elsevier, vol. 108(C).

    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. Guowei Li & Zhe Luo & Muhammad Anwar & Yuqiu Lu & Xiantao Wang & Xuening Liu, 2020. "Intellectual capital and the efficiency of SMEs in the transition economy China; Do financial resources strengthen the routes?," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-25, July.
    2. Rizwan Ullah Khan & Yashar Salamzadeh & Hiroko Kawamorita & Gabor Rethi, 2021. "Entrepreneurial Orientation and Small and Medium-sized Enterprises’ Performance; Does ‘Access to Finance’ Moderate the Relation in Emerging Economies?," Vision, , vol. 25(1), pages 88-102, March.
    3. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    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. 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.
    7. Milovanović Bojan Morić & Bubaš Zoran & Mikić Mihaela, 2021. "Entrepreneurial Orientation, Strategic Networking, and Croatian SMEs Performance: A Configurational Approach," Business Systems Research, Sciendo, vol. 12(2), pages 236-252, December.
    8. Tatiana Beliaeva & Galina Shirokova & William Wales & Elena Gafforova, 2020. "Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 165-194, March.
    9. J. M. Núñez-Pomar & P. Escamilla-Fajardo & V. Prado-Gascó, 2020. "Relationship between entrepreneurial orientation and social performance in Spanish sports clubs. The effect of the type of funding and the level of competition," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 981-999, September.
    10. 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.
    11. Li, Linwei & Jiang, Feifei & Pei, Yunlong & Jiang, Nengqian, 2017. "Entrepreneurial orientation and strategic alliance success: The contingency role of relational factors," Journal of Business Research, Elsevier, vol. 72(C), pages 46-56.
    12. J. M. Núñez-Pomar & P. Escamilla-Fajardo & V. Prado-Gascó, 0. "Relationship between entrepreneurial orientation and social performance in Spanish sports clubs. The effect of the type of funding and the level of competition," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-19.
    13. Omar Radwan Traboulsy, 2023. "The Role of Resource Acquisition in Achieving Sustainable Competitive Performance for SMEs in an Emerging Market: A Moderated Mediation Analysis," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    14. Tian Hongyun & William Adomako Kankam & Florence Appiah-Twum & Isaac Gumah Akolgo, 2019. "Effect of Social Capital on Firm Performance: The Role of Entrepreneurial Orientation and Dynamic Capability," International Review of Management and Marketing, Econjournals, vol. 9(4), pages 63-73.
    15. Xin, Yongrong & Khan, Rizwan Ullah & Dagar, Vishal & Qian, Fang, 2023. "Do international resources configure SMEs' sustainable performance in the digital era? Evidence from Pakistan," Resources Policy, Elsevier, vol. 80(C).
    16. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    17. Qianwei Ying & Hazrat Hassan & Habib Ahmad, 2019. "The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    18. 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.
    19. 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.
    20. Vishal K. Gupta & Suman Niranjan & Erik Markin, 2020. "Entrepreneurial orientation and firm performance: the mediating role of generative and acquisitive learning through customer relationships," Review of Managerial Science, Springer, vol. 14(5), pages 1123-1147, October.

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:42:y:2021:i:6:p:1619-1637. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.