Entrepreneurial Orientation and Firm Performance in New Ventures and Established Firms

Zhongfeng Su · En Xie · Yuan Li

188 citations0/0 files storedJournal of Small Business Management

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Entrepreneurship Studies and Influences Innovation and Knowledge Management Firm Innovation and Growth

Abstract

Lots of studies suggest a positive relationship between entrepreneurial orientation (EO) and firm performance; however, the empirical findings are inconclusive. There are two explanations for the contradictory results: the performance implication of EO is context-specific and the relationship between EO and performance may be curvilinear. Consulted on the perspective of the liability of newness and taken together these explanations, this paper probes into the difference in the EO-performance linkage between new ventures and established firms. We find that the relationship between EO and performance is inverse U-shaped in new ventures but positive in established firms. Finally, we discuss our contributions, implications, and possible future extensions.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1986Self-Reports in Organizational Research: Problems and Prospects 1977Estimating Nonresponse Bias in Mail Surveys 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1993Market Orientation: Antecedents and Consequences 1983The Correlates of Entrepreneurship in Three Types of Firms 2018Culture's Consequences

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