Founder effectiveness in leveraging entrepreneurial orientation

Abstract

Purpose This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than other types of managers at utilizing entrepreneurial orientation at initial public offerings (IPOs). Design/methodology/approach Using survival analysis the authors investigate the effects of EO on firm survival as well as the moderating role of founder CEOs. Findings The results suggest that EO increases post‐IPO survival. Further, founder‐CEOs moderate the EO‐survival relationship. Originality/value The paper shows that entrepreneurial orientation enhances long‐term survival in IPO firms. Survival is an important, though generally overlooked consideration in EO research. The paper also concludes that firms with founder CEOs are more likely to value and implement EO. Finally, the paper addresses calls for greater use of secondary measures of EO.

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