Multidimensionality of Entrepreneurial Firm-level Processes: Do the Dimensions Covary?

Abstract

Covariance (or not) among the first-order dimensions of firm-level entrepreneurial processes underpins a fundamental and non-trivial difference between the entrepreneurial orientation and entrepreneurial posture constructs. Utilizing a typology developed for multi-dimensional constructs, we operationalized each construct according to its specific conceptualization (relationships among the dimensions) and compared and contrasted each construct in an identical nomological network. Although we found support for both theories, the entrepreneurial orientation construct was more robust in explaining additional variance in growth. Additionally, our findings suggest that the means through which the first-order dimensions are operationalized—latent vs. summates— significantly affect the analysis.

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