Entrepreneurial Orientation among Large Firms in Malaysia: Contingent Effects of Hostile Environments

Abstract

This research's aim is to investigate the effect of entrepreneurial orientation dimensions on firm performance of large companies in Malaysia. In addition, the moderating effect of environmental hostility to these relationships was also examined. The entrepreneurial orientation is recognized as the driver of growth and profitability. In order to analyze the data, this study employed Partial Least Square (PLS). Objective data was used to measure the firm performance whilst subjective data was used to measure the independent and moderating variables. The findings showed that innovativeness and risk taking affect firm performance positively. In contrast, proactiveness did not. However, when business environment is perceived as hostile, proactiveness affects firm performance positively. The key contribution of this study is the empirical evidence on the importance of being entrepreneurial among large firms in Malaysia, which comprise of public listed companies.

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