The moderating effect of entrepreneurial culture and government support on the relationship between entrepreneurial orientation and firm performance

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Syed Noman Mustafa ◽  
Shahid Jan Kakakhel ◽  
Fayaz Ali Shah
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Moderating Effect ◽  
Wood Products ◽  
Government Support ◽  
Equation Modeling ◽  
Entrepreneurial Ecosystem ◽  
Khyber Pakhtunkhwa ◽  
Entrepreneurial Culture ◽  
The Relationship

This research paper empirically examined the moderating effect of entrepreneurial culture and government support on the relationship between entrepreneurial orientation and perceived financial firm performance in the context of province Khyber Pakhtunkhwa, Pakistan. The literature on firm-level entrepreneurship studies argued that external environmental factors vary across countries and regions, therefore, investigating the relationship between entrepreneurial orientation and firm performance is contingent on the external factors known as an entrepreneurial ecosystem of the region. Data were collected from 392 managers, senior officials and owners of the SME's representing four different business sectors of food and beverages, textile and leather products, wood and wood products, arms ammunition and other manufacturing products geographically located in Peshawar, Gadoon, Risalpur and Hattar industrial zones of Khyber Pakhtunkhwa. Proportionate stratified random sampling technique was utilized to give proper representation to each sub-population stratum. Data analysis was performed in IBM SPSS 23 and IBM SEM AMOS 23. Constructs Measurement model, structural model, and path analysis were done through AMOS structural equation modeling. Further, to examine the moderation effect of the variables entrepreneurial culture and government support on the relationship between Entrepreneurial Orientation and firm performance Baron and Kenny's (1983) three-step approach was used. Findings of the present research revealed a significant positive relationship between entrepreneurial orientation and SME's firm performance. Moreover, entrepreneurial culture significantly moderates the relationship between entrepreneurial orientation and firm performance, whereas government support does not moderate the relationship between Entrepreneurial orientation and firm performance. Keywords: Entrepreneurship, entrepreneurial orientation, perceived firm performance, entrepreneurial ecosystem, entrepreneurial culture, government support.

Strategic orientations, firm performance and the moderating effect of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Orientations ◽  
The Relationship

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

scholarly journals Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation

2021 ◽  
Author(s):  
Antonio Rodriguez-Peña
Keyword(s):  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Business Groups ◽  
Corporate Entrepreneurship ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Environmental Dynamism ◽  
Corporate Venturing ◽  
The Impact ◽  
The Relationship

Abstract Corporate entrepreneurship creates opportunities in employment, technological advances, value creation, and cultural transformation for entrepreneurial ecosystems, entrepreneurs, governments, economies and society around the globe. The purpose of this study is to assess the impact of corporate entrepreneurship on the financial performance of subsidiaries in Colombian business groups under the moderating effect of the environmental dynamism, because the relationship between corporate entrepreneurship and financial performance in emerging economies must differ from developed economies. Using a cross-sectional Structural Equation Modeling analysis, this study assessed the impact of entrepreneurial orientation and corporate venturing on the firm financial performance of 87 subsidiaries of Colombian business groups at different levels of environmental dynamism. This study also confirms that the relationship between corporate entrepreneurship and performance is context-dependent, and that entrepreneurial orientation has a strong and positive causal relationship with corporate venturing. Additionally, subsidiaries of Colombian business groups increase their financial performance when also does the entrepreneurial orientation, and decrease financial performance when so does corporate venturing. Furthermore, the results show that environmental dynamism does not have a moderating effect on the relationship between corporate entrepreneurship of subsidiaries in Colombian business groups and their performance. This paper would contribute to important areas in Latin America business, where such studies are scarce.

Entrepreneurial orientation and performance: the interaction effect of customer capital

2014 ◽  
Vol 10 (1) ◽  
pp. 48-68 ◽  
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
Thurasamy Ramayah
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Interaction Effect ◽  
Entrepreneurial Orientation ◽  
Two Dimensions ◽  
Government Support ◽  
Cross Sectional ◽  
Content Type ◽  
Customer Capital ◽  
The Relationship

Purpose – The purpose of this study is to advance research on entrepreneurial orientation (EO), resource-based view (RBV), customer (relational) capital, and small and medium enterprises (SMEs) by examining how the interaction effect of customer capital shapes the relationship between EO and firm performance. Design/methodology/approach – This research is considered as a correlational rather than a casual study with 150 questionnaire returned from manufacturing SMEs. This cross-sectional study tested all hypotheses that are related to the research questions and use statistical software SPSS 17 to analyze data. Findings – The study found that a high customer capital strengthens the link between two dimensions of EO (innovativeness and risk taking) and weakens the link between another dimension of EO (proactiveness) and firm performance. Research limitations/implications – First, future studies would benefit from an enhanced development in the measurement of EO dimensions, which relies on richer and more refined conceptualizations. Second, a single informant who was asked to evaluate EO may potentially increase the degree of subjectivity and bias in the responses. Obtaining more than one respondent for the survey from each organization is always highly desirable. Practical implications – The results of the current study cover the limitation of the previous study by independently examining the moderating effect of customer capital as an intangible resource in the relationship between innovativeness and risk taking on firm performance. The paper expands this line of work by adding the idea that the intangible resources of a firm are more likely to contribute to sustaining superior firm performance when they are used with other factors simultaneously. Social implications – Environmental factors, such as government financial aid and protection of organizations outside the industry, may affect the relationship between SMEs and the agents. Establishing extra ties between Iranian firms and agents may be expensive for Iranian manufacturing firms, and they may not be able to create these ties without government support. Originality/value – A research gap exists in understanding how customer capital operates and endows benefits to firms that are beyond their start-up phase and are embarking on international activities. The current study tries to overcome a number of limitations of the previous framework by combining RBV and customer capital. Particularly, “the RBV's lack of specificity have raised questions as to its status as a legitimate theory, and make it difficult to design and test empirically.”

The Moderating Effect of Family Firm Status on the Entrepreneurial Orientation-Performance Relationship

2019 ◽  
pp. 102-132
Author(s):  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Laura Victoria Fielden Burns
Keyword(s):  
Firm Performance ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Small And Medium Enterprises ◽  
Positive Association ◽  
Chief Executive ◽  
Family Firm ◽  
Moderating Effect ◽  
And Performance ◽  
The Relationship

Although management literature mostly reports a positive association between entrepreneurial orientation and firm performance, it also recognizes that different business contexts may prompt different manifestations of entrepreneurial orientation. Considering that family firms constitute the backbone of most economies across the globe, and based on arguments from socioemotional wealth perspective, this research aims to examine the moderating effect of being a family firm on the relationship between entrepreneurial orientation and firm performance. The empirical study is based on primary information obtained from the chief-executive-offices of 402 small and medium-enterprises (SMEs) from Portugal, a country located in southwestern Europe, and one that has been scantly investigated by the literature in the confluence between entrepreneurial orientation and family firms. Results show that the family firm status weakens the relationship between entrepreneurial orientation and performance in the Portuguese SMEs.

scholarly journals Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance

2018 ◽  
Vol 9 (4) ◽  
Author(s):  
Kayhan Tajeddini ◽  
Stephen Mueller
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Empirical Studies ◽  
Dynamic Environment ◽  
Moderating Effect ◽  
And Performance ◽  
Performance Results ◽  
Financial Firm ◽  
The Relationship

Abstract The relationship between entrepreneurial orientation and firm performance has been the focus of numerous empirical studies over the past decade. The conclusions and findings reported are diverse and often conflicting. One possible explanation for mixed findings is that past studies do not take into account the dynamic nature of the industry environment. Using a sample of 192 Swiss firms from several different industries, this study examines the direct effect of entrepreneurial orientation on financial firm performance along with the moderating effect of a dynamic environment on the relationship between entrepreneurial orientation and performance. Results of this study suggest that for firms competing in a highly dynamic environment, the positive effect of an entrepreneurial orientation on financial performance is enhanced.

scholarly journals Entrepreneurial orientation and firm performance: the mediating role of functional performances

2018 ◽  
Vol 41 (7) ◽  
pp. 878-900 ◽  
Author(s):  
Jafar Rezaei ◽  
Roland Ortt
Keyword(s):  
Firm Performance ◽  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Positive Relationship ◽  
Sales Performance ◽  
Production Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Overall Performance ◽  
The Relationship

Purpose Earlier studies have generally shown a positive relationship between entrepreneurial orientation (EO) and the overall performance of the firm. The purpose of this paper is to understand in more detail how EO influences firm performance. It adds to the literature by distinguishing performances of different functions in a firm and by exploring how the dimensions of EO influence these functional performances and, in turn, overall firm performance. Design/methodology/approach This study examined the relationship between three dimensions of EO (innovativeness, proactiveness, risk-taking), three types of functional performances of firms (R&D performance, production performance, marketing and sales performance) and the overall performance of firms. The data are collected from 279 high-tech small-to-medium-sized enterprises (SMEs) using a postal survey. The proposed hypotheses are tested using structural equation modeling (SEM). Findings The results indicate that the dimensions of (EO) are related in different ways to the performance of functions in a firm. A positive relationship is observed between innovativeness and R&D performance and between proactiveness and marketing and sales performance. A negative relationship exists between risk-taking and production performance. The results also show a sequential positive relationship from R&D via production and marketing and sales to overall performance of firms. Therefore, it is concluded that the R&D, production and marketing and sales functions reinforce each other in a logic order and are complementary in their effect on overall firm performance. Practical implications The results imply that the three functions, R&D, production and marketing and sales, in a firm play different roles, both in the firm’s EO and in their contribution to overall performance. Managers can use the findings to monitor and influence the performance of different functions in a firm to increase overall firm performance. Originality/value The first contribution of this study is that it unravels (i) which dimensions of EO have an effect on the performance of separate functions in a firm, indicating that functions contribute in different ways to entrepreneurial orientation of the firm. A second contribution is assessing how the performance of these functions influence the firm’s overall performance. This paper fills a gap in the literature by exploring internal firm variables mediating the relationship between EO and overall firm performance and contributes to the discussion on the contradictory results regarding the relationship between risk-taking and firm performance.

scholarly journals Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Antonio Rodríguez-Peña
Keyword(s):  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Business Groups ◽  
Corporate Entrepreneurship ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Environmental Dynamism ◽  
Corporate Venturing ◽  
The Impact ◽  
The Relationship

AbstractCorporate entrepreneurship creates opportunities in employment, technological advances, value creation, and cultural transformation for entrepreneurial ecosystems, entrepreneurs, governments, economies, and society around the globe. The purpose of this study is to assess the impact of corporate entrepreneurship on the financial performance of subsidiaries in Colombian business groups under the moderating effect of the environmental dynamism, because the relationship between corporate entrepreneurship and financial performance in emerging economies must differ from developed economies. Using a cross-sectional structural equation modeling analysis, this study assessed the impact of entrepreneurial orientation and corporate venturing on the firm financial performance of 87 subsidiaries of Colombian business groups at different levels of environmental dynamism. This study also confirms that the relationship between corporate entrepreneurship and performance is context-dependent and that entrepreneurial orientation has a strong and positive causal relationship with corporate venturing. Additionally, subsidiaries of Colombian business groups increase their financial performance when also does the entrepreneurial orientation, and decrease financial performance when so does corporate venturing. Furthermore, the results show that environmental dynamism does not have a moderating effect on the relationship between corporate entrepreneurship of subsidiaries in Colombian business groups and their performance. This paper would contribute to important areas in Latin America business, where such studies are scarce.

The Influence of Strategic Orientation on Firm Performance Mediated by Social Media Orientation at MSMEs

2018 ◽  
Vol 4 (08) ◽  
Author(s):  
Aekram Faisal ◽  
Asep Hermawan ◽  
Willy Arafah
Keyword(s):  
Social Media ◽  
Firm Performance ◽  
Market Orientation ◽  
Entrepreneurial Orientation ◽  
Two Dimensions ◽  
Strategic Orientation ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Technological Orientation ◽  
Media Orientation

The main purpose of this research is to analyze the influence of strategic orientation on firm performance mediated by social media orientation at MSMEs. Strategic orientation includes market orientation, entrepreneurial orientation, technological orientation, and learning orientation. The design used in this research is hypothesis testing by using Structural Equation Modeling (SEM). The respondent population of this research is all owners or managers of MSMEs located in DKI Jakarta area and have been running their business for at least 2 (two) years, and have used social media in their business. This study used a sample of respondents. The sampling was done by using non-probability sampling technique with purposive sampling method with 321 respondents. The results of this study show that only learning orientation has a direct effect on firm performance, while for market orientation and entrepreneurial orientation requires mediation role from social media orientation, and for technological orientation either directly or after mediation by social media orientation still has no effect significant to firm performance. The variable that has the greatest influence on firm performance after mediated by social media orientation is the entrepreneurial orientation. The results of this study provide insight for MSMEs practitioners, in order to use their strategic activities to increase the use of social media so as to improve the firm performance. This study has limitations, including not detailing the construct dimension of social media orientation into two dimensions of visibility and Sales and business development, and the sample of respondents from this study is only the perpetrators of MSMEs located in the area of DKI Jakarta. This can be a suggestion for further research. The model proposed in this study is to add the role of social media orientation as a mediation variable in the relationship between strategic orientation with firm performance.

Perceived Employability Moderates Burnout and Depression Among Bank Employees

2016 ◽  
Vol 44 (7) ◽  
pp. 1123-1132 ◽  
Author(s):  
Haishu Qiao ◽  
Yue Xia ◽  
Ying Li
Keyword(s):  
Mental Health ◽  
Structural Equation Modeling ◽  
Structural Equation ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Hierarchical Regression ◽  
Negatively Associated ◽  
Perceived Employability ◽  
Bank Employees ◽  
The Relationship

Because bank employees have been found to be especially susceptible to burnout and depression, we explored the relationship between these variables, and examined the moderating effect of perceived employability on the burnout–depression relationship in a sample of Chinese bank employees. As we expected, burnout and perceived employability were, respectively, positively and negatively associated with depression. The results of hierarchical regression and structural equation modeling indicated that perceived employability moderated the relationship between burnout and depression; higher perceived employability was associated with a weaker relationship between burnout and depression. Interventions aimed at developing the perceived employability of Chinese bank employees may help to improve mental health in this group.

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