Linking relational capabilities and entrepreneurial orientation of an organization

Abstract

Objective: The aim of the paper is to examine relational capabilities of an organization in the context of entrepreneurial orientation and to identify potential interconnection between them. Research Design & Methods: The sample consists of 363 small- and medium-sized enterprises (SMEs) representing both service and manufacturing (high- and low tech) industries. The correlation analysis was employed to test the associations among variables. The variables were dimensions of entrepreneurial orientation (i.e., risk-taking, innovativeness, and proactiveness), dimensions of relational capability (i.e., the intensity of inter-organizational relations, resources involved in inter-organizational relations, and management of inter-organizational relations), and firm’s performance. Findings: The findings show that all dimensions of relational capabilities are associated strongly with risk-taking, while their associations with innovativeness and proactiveness are weak, however statistically significant. The access to external resources, their utilization, and sharing their resources are the most important aspects of relational capabilities. All variables are significantly correlated with performance. Contribution & Value Added: The study’s results imply that relational capabilities may play an important role in pursuing entrepreneurial opportunities. The findings confirm the importance of behaviours focused on sharing resources (including knowledge). This observation has a practical implication for entrepreneurs.

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