Firm-level entrepreneurship and international performance: A simultaneous examination of orientation and action

Mojtaba Hosseini · Hossein Dadfar · Staffan Brege

30 citations0/0 files storedJournal of International Entrepreneurship

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Entrepreneurship Studies and Influences International Business and FDI Innovation and Knowledge Management

Abstract

Relying on the resource-based view and contingency analysis, this study aims to investigate the relationship between firm-level entrepreneurship (FLE) and international performance among Iranian small and medium-sized enterprises (SMEs). The environment is considered as a moderating factor which enables us to discuss the results more precisely. To draw a more holistic picture of entrepreneurship in existing companies, both orientation and action are included in the research model. A survey study of 140 SMEs using a partial least squares structural equation modelling analysis demonstrated a negative effect of entrepreneurial orientation (EO) on international performance, but a positive impact for corporate entrepreneurship (CE). Environmental dynamism (ED) appeared as an insignificant moderator, while environmental hostility (EH) significantly moderated the effect of EO on international performance. The unexpected results of this study, especially in the case of EO, add new insights on the FLE research of smaller companies. When SMEs are performing in a business network, cooperation becomes the priority, and any type of opportunistic behaviour which harms the trust weakens their collective performance.

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References

1981Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics 2015A primer on partial least squares structural equation modeling (PLS-SEM)1998Social Capital, Intellectual Capital, and the Organizational Advantage 2000The Promise of Enterpreneurship as a Field of Research 2014A primer on partial least squares structural equation modeling (PLS-SEM)1977The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments 1996Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance 1989Strategic management of small firms in hostile and benign environments

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