36631959
The effect of entrepreneurship orientation and learning orientation on SMEs' performance: an SEM-PLS approach
This study attempts to investigate the effects of entrepreneurial orientation and learning orientation on SMEs' performance. A total of 200 SMEs from the electronic and electrical sector, and 250 SMEs from food and beverage industries were chosen randomly. The results of this study show that entrepreneurial orientation dimensions (innovativeness, proactiveness, and risk taking) and learning orientation have a significant relationship with SMEs' performance. In this context, entrepreneurial orientation makes a significant contribution to SMEs' performance when learning orientation is considered as an investment and a key factor for SMEs' survival.
167092265
An evaluation of SME development in Malaysia
Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered effectively enough to overcome these problems. This paper attempts to identify the challenges as a positive first step towards formulating a workable framework for the SMEs to overcome them.
168161529
Issues which Impact upon Marketing in the Small Firm
Defining the small firm is somewhat arbitrary as criteria used to classify entities as such include size, number of employees, sales volume, asset size, type of customer, capital requirements and market share. There is, however, general agreement that smallness and newness create specific difficulties for business. Furthermore, there is widespread acceptance of the notion that small firms typically possess certain characteristics, which serve to differentiate them from larger organisations. These characteristics include inherent weaknesses with respect to capitalisation and marketing awareness and practice. Small firms are perceived as vulnerable yet valuable entities, important both economically and socially. High failure rates of small firms are largely attributed to weaknesses in financial management and marketing. Many classical management concepts are unsuitable for application in a small firm context, with research suggesting non-implementation of theoretically based marketing practice is the rule rather than the exception in the small firm. This paper reviews issues pertaining to marketing practice in the small firm. It examines the absence of agreed definitions of "the small firm" and "success" or "failure" of such entities, offers definitions for these terms, acknowledges the importance of small firms to the economy, reviews small firm characteristics, acknowledges inherent weaknesses with regard to finance and marketing in small firms, reviews marketing practice in the context of small firm characteristics, and considers the roles of marketing educators and owner/managers in improving small firm's marketing practice.
154034363
The relationship between risk-taking propensity and demographic characteristics among MSEs in Malaysia
Micro- and Small Enterprises (MSEs) contribute significantly to economic development, and this could be influenced by demographic factors and risk-taking propensity. This study assesses the relationship between risks-taking propensity and demographic characteristics of Malaysian MSEs owners. A stratified sample totalling 260 names and addresses was derived from the Small and Medium Industries Development Corporation (SME Corp). The Risk Attitudes Inventory (RAI) was used in the survey to measure entrepreneurial risk-taking propensity, which presented with 15 hypothetical situations. The questions were to stimulate reflection and thought about one's risk-taking style and beliefs. The scale that was used for the measurement of risk-taking propensity consisted of three levels: low, medium and high. The study concludes that there is no relationship between risk-taking propensity and business owners' demographic characteristics such as gender, business owners' age, education level and their business experience.
153320539
The Sustainability of the Entrepreneurial Orientation—Performance Relationship
Entrepreneurial orientation (EO) has become an important and extensively researched topic in the literature. Empirical results suggest that EO may influence firm performance. However, it is important to determine whether the EO-performance relationship is sustainable since EO can be a resource-consuming strategic orientation. This research examines the sustainability of the EO-performance relationship; i.e., whether EO affects performance during an extended period of time or is a “quick fix” where performance is only temporarily affected. Using data from Swedish small firms, the results indicate that there is indeed a positive relationship between EO and performance. This relationship also increases over time. The results show that investments in EO may be worthwhile for small firms since they pay off over an extended period of time.
145602911
Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance
The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.
9182720
Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future
Entrepreneurial orientation (EO) has received substantial conceptual and empirical attention, representing one of the few areas in entrepreneurship research where a cumulative body of knowledge is developing. The time is therefore ripe to document, to review, and to evaluate the cumulative knowledge on the relationship between EO and business performance. Extending beyond qualitative assessment, we undertook a meta–analysis exploring the magnitude of the EO–performance relationship and assessed potential moderators affecting this relationship. Analyses of 53 samples from 51 studies with an N of 14,259 companies indicated that the correlation of EO with performance is moderately large (r = .242) and that this relationship is robust to different operationalizations of key constructs as well as cultural contexts. Internal and environmental moderators were identified, and results suggest that additional moderators should be assessed. Recommendations for future research are developed.
154186956
Entrepreneurial Orientation, Learning Orientation, and Firm Performance
Entrepreneurial orientation (EO) is a key ingredient for firm success. Nonetheless, an important message from past findings is that simply examining the direct effect of EO on firm performance provides an incomplete picture. Prior studies examined various internal and external factors that influence the EO–performance relationship. However, learning orientation (LO) has been a missing link in the examination of the relationship. Using data from 213 medium–to–large UK firms, this study finds that LO mediates the EO–performance relationship, and the EO–LO–performance link is stronger for prospectors than analyzers. The findings indicate that LO must be in place to maximize the effect of EO on performance, and that LO is an important dimension, along with EO, to distinguish prospectors from analyzers.
167468060
Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis
Abstract Over the past several years corporate entrepreneurship has been widely touted by executives and researchers alike as an effective means for revitalizing companies and improving their financial performance. For the most part, the call for greater entrepreneurial behavior on the part of established companies has been accepted on faith as an inherently desirable objective. The implicit logic behind the pervasive belief in the value of corporate entrepreneurship seems to be that risk taking, innovation, and aggressive competitive action—the key elements of entrepreneurial corporations—will help in identifying and pursuing lucrative product/market opportunities and in providing new bases for achieving superior competitive positions. But what do we really know about the financial consequences of corporate entrepreneurship? Most of the evidence that corporate entrepreneurship “pays off” is anecdotal in nature or based on cross-sectional studies that focus on the short-term implications of entrepreneurial behaviors. As such, in a definitive sense, we know very little about the financial consequences of corporate entrepreneurship. In an attempt to improve our understanding of this issue, this article describes a study of corporate entrepreneurship and its impact on company financial performance. Data were collected from three different samples over a seven-year period to assess the longitudinal impact of corporate entrepreneurship on firm performance. These samples consist of 24 medium-sized manufacturing firms representing 14 industry segments, 39 chemical companies, and 45 Fortune 500 industrial firms representing five industry segments. Data were gathered on each sample using both primary and secondary sources. Regression analysis was then used to analyze the data. The results suggest that corporate entrepreneurship has a positive impact on financial measures of company performance. This effect on performance, which tends to be modest over the first few years, increases over time, suggesting that corporate entrepreneurship may, indeed, be a generally effective means for improving long-term company financial performance. Moreover, the results indicate that corporate entrepreneurship is a particularly effective practice among companies operating in hostile environments (as opposed to benign environments). The study has three principal implications for practicing managers. First, the study documents the general financial viability of engaging in corporate entrepreneurship. This is not to suggest that corporate entrepreneurship is a panacea for improving financial performance. However, entrepreneurial behavior, when considered on the whole (i.e., across firms and industries), is associated with superior financial performance. Second, the study suggests a need to use a long-term time horizon in order to adequately judge the financial consequences of corporate entrepreneurship. The use of a shorter evaluation period may not allow sufficient time for entrepreneurial actions to have their full market and corresponding financial impact. Finally, the study identifies the context-specific character of effective entrepreneurial practice. Specifically, corporate entrepreneurship appears to be a particularly effective strategic practice among firms operating in hostile business settings.
3098574
The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication
Abstract Narver and Slater's (1990) finding of a positive relationship between market orientation and business profitability is retested in a broad sample of product and service businesses operating in a variety of industries. The assessment of the extent of market orientation is provided by the chief marketing officer, and profitability is assessed by the general manager, thus avoiding the problem of common respondent bias. The analysis of the influence of culture on business performance is extended by including a measure of entrepreneurial orientation in the study. The influence of a market orientation on business profitability is then compared with that of an entrepreneurial orientation. The regression coefficient for market orientation (.662) is higher in this replication than in the original study (.501), and the pairwise correlation coefficient for the relationship between market orientation and profitability is very similar in both studies (.362 and .345, respectively). No relationship is found between entrepreneurial orientation and business profitability. Thus, by drawing a sample from a more diverse population, avoiding the common respondent bias problem, and comparing the effect of a market orientation to that of an entrepreneurial orientation, the findings from this balanced replication increase confidence in the importance and generalizability of the market orientation–profitability relationship found in the 1990 Narver and Slater study.
167650839
Strategy‐making and environment: The third link
Whereas much is known about the relationships between strategy and structure, and between environment and structure, too little is known about a third link—the relationship between strategy-making and environment. An empirical study was conducted upon two distinct samples of firms. We hypothesized that increases in environmental dynamism, hostility and heterogeneity should be related to specific changes in the amount of analysis and innovation which characterizes strategy-making activity. Most of these relationships tended to be much stronger in successful than in unsuccessful samples of firms.
14720122
Explaining Development and Change in Organizations
This article introduces four basic theories that may serve as building blocks for explaining processes of change in organizations: life cycle, teleology, dialectics, and evolution. These four theories represent different sequences of change events that are driven by different conceptual motors and operate at different organizational levels. This article identifies the circumstances when each theory applies and proposes how interplay among the theories produces a wide variety of more complex theories of change and development in organizational life.
144175516
The Measurement of Entrepreneurial Orientation
This article explores how the concept of entrepreneurial orientation (EO) has been portrayed and assessed in prior research. The challenges and decision criteria associated with formative versus reflective measurement approaches are reviewed. It is argued that, as a latent construct, EO exists apart from its measures and that researchers are free to choose whichever measurement approach best serves their research purposes, recognizing that unidimensional versus multidimensional EO measurement models are consistent with fundamentally different conceptualizations of the EO construct. Recommendations are offered regarding potentially appropriate formative and reflective measures of EO.
167501721
Strategic management of small firms in hostile and benign environments
Examines the strategic postures, competitive tactics, and organization structures of small manufacturing firms that are associated with high performance in both hostile and benign environments. Hostile environments have such characteristics as difficult business climates, intense competition, and few opportunities, making such environments difficult for smaller, resource poor firms, and such environments are increasingly common in manufacturing. Two hypotheses suggest that the relationships between the organization structure and strategic posture can be determined by the level of hostility in the environment. Data were collected via surveys sent to single-industry, independently owned firms in western Pennsylvania, of which 161 responses were analyzed from among those in business for at least five years. Findings indicate that: (1) small firms with organic structures perform best in hostile environments, while small firms with mechanistic structures perform best in more benign environments; and (2) entrepreneurial firms perform better in hostile environments, while small conservative firms perform best in more benign environments. (SFL)
144854637
International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions
The amount of research conducted on the topic of international entrepreneurial orientation (IEO) has grown exponentially in recent years, thus inviting an analysis of the scholarly conversations taking place. This paper is a review and commentary on how the construct of entrepreneurial orientation (EO) has been leveraged within the international entrepreneurship literature. The possible distinctiveness of the EO and IEO constructs are considered, and the major themes of IEO research are summarized. Several measurement–related issues particularly pertinent to the assessment of EO as a generalizable/universalistic phenomenon are considered. The paper concludes with the identification of research foci whose pursuit promises to advance IEO knowledge along productive paths.
153946093
The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization
In this manuscript, we examine the evolution of the Entrepreneurial Orientation (EO) concept in an effort to identify areas of concern for the future development of knowledge around the construct and provide conceptual analyses to suggest how we might best move forward in the construct's development. We suggest that the continued accumulation of knowledge in the field is best facilitated by conceptualizing EO as a reflective model utilizing three dimensions that can be extended through the use of a classical classification scheme and that additional subcategories of EO should be developed within the EO conceptual family utilizing new measurement items.
167581767
Effects of entrepreneurial orientation on online retail performance
The importance of entrepreneurial orientation on performance is widely recognised, but little is known about the relationships between the individual dimensions of entrepreneurial orientation and firm performance. The present paper investigates how the dimensions (innovativeness, proactiveness and risk taking) of entrepreneurial orientation vary and how they impact online retail performance. Survey data from retail firms were analysed using structural equation modelling. The findings suggest that the dimensions of EO vary independently and that they have opposing effects on firm performance. Proactiveness was found to have a statistical significant positive impact on performance, while the effects of innovativeness and risk taking were negative. The findings have managerial implications for online retailing.
154738715
Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China
This study examined the relationships among entrepreneurial orientation (EO), experimental learning (EL) and acquisitive learning (AL), and firm performance (FP). We tested our model in China as EO is the engine that is driving firms to take advantage of opportunities in an increasingly market–oriented transitional economy. From the responses of 607 firms, we found that EO was positively related to EL but had an inverse U–shaped relationship with AL. Both EL and AL enhanced FP although the effects from AL were weaker and became nonsignificant when external knowledge was embedded into the firm's internal private knowledge.
143719718
Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs
This study utilizes data from 1,048 firms in six countries to assess the impact of national culture and certain institutions that are representative of national culture on two key dimensions of entrepreneurial orientation: risk taking and proactiveness. Eight hypotheses are developed specifying the expected relationships between four cultural dimensions and levels of risk taking and proactiveness within SMEs. Additionally, two hypotheses are developed to explore between–country differences in the relationship between risk taking and proactiveness and a range of institutional variables. Uncertainty avoidance and power distance are both found to have a significant negative influence on risk taking; uncertainty avoidance, individualism, and power distance are found to negatively influence proactive firm behaviors. A number of institutional factors are also found to be significantly linked to between–country differences in both risk taking and proactive behaviors. This research contributes to existing theories of national culture by suggesting that the various dimensions of cultural values and several of the institutions that are representative of national culture impact the willingness of entrepreneurial firms to display risk taking and proactive behaviors.
153902895
Moderating Effects of Entrepreneurial Orientation on Market Orientation‐Performance Linkage: Evidence from Chinese Small Firms*
Literature revealed that an appropriate alignment between firm strategic orientation and market positioning is critical because of its impact on firm performance. The alignment is especially crucial for small businesses as a result of their limited resource base. However, studies have not adequately accounted for the joint effect of entrepreneurial orientation (EO) and market orientation (MO) on firm performance in different institutional environments, such as transitional economies. In this study, we examine the moderating effect of EO on the linkage between MO and firm performance among small enterprises in China. We have found that MO, alone and in conjunction with certain EO dimensions, is positively related to firm performance. More specifically, innovativeness and proactiveness have positively moderated the relationship between MO and performance. We discuss managerial implications and offer suggestions for future research.
9545951
Entrepreneurial Orientation and Small Business Performance: A Configurational Approach
The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.
168088536
Examining the Effect of Market Orientation On Innovativeness
For the past decade innovativeness, as opposed to innovation, has received considerable attention in the academic literature as well as the corporate arena because it is considered to promote a competitive advantage. This study examines the link between innovativeness and performance of SMEs in the Swiss watch industry, in terms of customer orientation, competition orientation and inter-functional coordination. It uses performance measures such as market share, percentage of new product sales to total sales and return on investment (ROI), and has developed a new research scale of innovativeness. The results show that customer orientation has a positive effect on performance as well as the level of innovativeness in each company. There are also strategic implications for CEOs and managers as far as the methodological limitations and future research directions are concerned.
166801095
A Conceptual Model of Entrepreneurship as Firm Behavior
This article outlines a conceptual model of entrepreneurship as an organizational-level phenomenon. The model is intended to depict the organizational system elements that relate to entrepreneurial behavior among larger, established firms, but may also be applicable in varying degrees to many smaller firms. Entrepreneurship is described as a dimension of strategic posture represented by a firm's risk-taking propensity, tendency to act in competitively aggressive, proactive manners, and reliance on frequent and extensive product innovation. The proposed model delineates the antecedents and consequences of an entrepreneurial posture as well as the variables that moderate the relationship between entrepreneurial posture and firm performance. The advantages of a firm-behavior perspective on entrepreneurship are discussed, as are the theoretical and managerial implications of such a perspective.
167972481
Role of entrepreneurship and market orientation in firms' success
Purpose – This article aims to offer empirical evidence pertaining to the relationship among entrepreneurship, market orientation and business performance within the context of disadvantaged socio‐economic regions of the European Union.Design/methodology/approach – Two groups of hypotheses investigate the relationship between entrepreneurship and market orientation and the joint effect of these dimensions on performance. All questions are approached using survey data from 183 firms located in the Castilla y Leon region, Spain.Findings – A strong relationship exists between entrepreneurship and market orientation. Although these orientations may be implemented separately, firms emphasise entrepreneurship when they are market‐oriented. Therefore, the strong relationship and complementarities between entrepreneurship and market orientation reduce the effort involved in the joint adoption of both orientations. Both orientations also demonstrate a strong relationship with performance, such that each contribute...
153670930
The innovativeness effect of market orientation and learning orientation on business performance
Purpose – The purpose of this paper is to provide a quantitative analysis, in which learning orientation, market orientation, entrepreneurial orientation, and innovativeness function as key success factors in technology‐intensive firms. The authors formulate a structural equation model to examine the relationship among these constructs.Design/methodology/approach – A structural equation model was designed to examine the relationship. To test the model, the authors conducted covariance structural analyses of data collected from 333 venture companies, including innovation companies, in Taiwan.Findings – The central finding is that learning orientation plays a full mediating role in the relationship between market orientation and innovativeness. The results indicate that organizational structure (formalization and decentralization) does not play a moderating role in the relationship between innovativeness and business performance; however, the extent of formalization of an organizational structure negatively...
2999235
Entrepreneurial orientation of SMEs, product innovativeness, and performance
Abstract This paper looks beyond the entrepreneurial orientation (EO)-performance link and focuses on identifying EO profiles of SMEs to suggest variations in product innovativeness dimensions of different performance potential. Based upon a sample of 149 manufacturing companies, the study identifies two opposite groups with the help of a cluster analysis, namely the active entrepreneurs and the passive entrepreneurs. The particular results verify the viewpoints stated by industry experts in Greece, but also facilitate further understanding of firms following a similar duality observed in other studies. Taking a step further, subsequent analysis of variance demonstrates that these groups consist of product innovators, who take equal care of reducing customers' burden (e.g. time, effort, purchase risk) in adopting new products. However, the entrepreneurial attitude instilled in active entrepreneurs as compared with passive entrepreneurs is primarily mirrored in new products, which embody in their characteristics higher uniqueness; an ingredient found to act as an important contributor to product performance. This article, apart from its contribution to the entrepreneurship research, has meaningful implications for managers and policy-makers.
167866917
Effects of interaction and entrepreneurial orientation on organizational performance: Insights into market driven and market driving
Abstract Research in marketing suggests that the notion of market driven and market driving is highly relevant for industrial markets. This study provides evidence that interaction and entrepreneurial orientations are linked to market-driven and market-driving approaches respectively. Further, this research investigates how these two orientations affect organizational performance. Based on a survey of Taiwan's electronics industry, this study indicates that both interaction and entrepreneurial orientations improve the exploitative and exploratory capabilities of an organization, which in turn contribute to superior organizational performance. The results of this study provide important theoretical and managerial implications for strategy development from both the market driven and market driving perspectives.
154107429
Entrepreneurial orientation and the performance of service business
The purpose of this study is to investigate the impact of entrepreneurial orientation (EO) on the performance of service businesses. For this purpose, we analyzed the data from the owners of Japanese food restaurants. The results of this study suggest: (1) the owner’s personal attributes have a strong influence on the performance of small- and medium-sized service businesses and (2) most EO dimensions have a positive impact on the service firm’s performance. These findings emphasize the importance of developing EO among the owners of small- and medium-sized service businesses for their success.
168001611
The Effects of Entrepreneurial Proclivity and Market Orientation on Business Performance
The recent literature suggests a potential tension between market orientation and entrepreneurial proclivity in achieving superior business performance. This is unsettling for marketers, because it could mean that being market oriented is detrimental to a firm that is also trying to be entrepreneurial and successful. To examine this unnerving potential, the authors investigate structural influences (both direct and indirect) of entrepreneurial proclivity and market orientation on business performance. The results indicate that entrepreneurial proclivity has not only a positive and direct relationship on market orientation but also an indirect and positive effect on market orientation through the reduction of departmentalization. The results also suggest that entrepreneurial proclivity's performance influence is positive when mediated by market orientation but negative or nonsignificant when not mediated by market orientation. The authors also provide a discussion and future research implications.
5086230
What are the relationships among Web 2.0, market orientation and innovativeness?
Purpose – Firms are adopting Web 2.0 technologies to improve collaboration, participation and communication; however there are few empirical studies testing the impact of this adoption. The purpose of this article is to analyze if there is a linkage amongst market orientation, Web 2.0 adoption and innovativeness.Design/methodology/approach – Structural equation modeling was used to test the relationships amongst the variables. A sample of 244 firms of the hospitality industry was used. The theoretical approach is based on the market orientation and innovativeness, concepts, which have been studied by various authors in the literature.Findings – A positive relationship was found between market orientation and Web 2.0 adoption and between Web 2.0 adoption and innovativeness.Research limitations/implications – The study was developed in one industry, so in order to generalize the findings, additional testing in other industries should be developed. In addition a longitudinal study is encouraged.Practical imp...
154689917
Firm resources and entrepreneurial orientation as determinants for collaborative entrepreneurship
Purpose – The purpose of this paper is to investigate what factors drive collaborative entrepreneurship. To do so, the authors examine the joint influence of both firm resources and entrepreneurial orientation on the decision to establish interfirm alliances. The paper considers new variables which are likely to determine the phenomenon.Design/methodology/approach – Based on a random sample, the authors performed a cross‐sectional study among 84 Portuguese firms. Data collection was made by an online questionnaire with a personalised link and answer control codes. For data analyses, the authors used descriptive statistics and logistic regression (logit model).Findings – The results indicate that several resources and some dimensions of entrepreneurial orientation are linked with collaborative entrepreneurship, but the effects are rather mixed. In particular, financial, commercial and administrative resources, as well as innovative potential and collective capability, seem to be most relevant for the allia...
153827521
Organisational innovativeness in Estonian biotechnology organisations
Purpose – The biotechnology sector provides business‐to‐business service and continuous innovation is an imperative for biotechnology organisations in order to survive. The aim of this paper is to outline the elements in Estonian biotechnology organisations that inhibit them from becoming more innovative, and based on that, suggest how managers can increase their organisational innovativeness (OI).Design/methodology/approach – The study is based on single‐respondent structured interviews that were carried out in 15 biotechnology organisations in Estonia. The questions were divided into five categories: strategic orientation to innovation, processes related to resource allocation, processes related to work organisation, behaviour related to innovation initiation and behaviour related to innovation implementation. For each category OI the score was calculated and analysed.Findings – The study hypothesised that OI is about half of its potential and the lowest scores were expected to emerge in the resource al...
15111792
Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value
Abstract This paper seeks to address two main problems. First, it evaluates the direct effect of entrepreneurship and business orientations namely, learning orientation, integrated market orientation and human resource practices on innovation and customer value. Second, it examines the interaction effect of entrepreneurship and business orientations on innovation and customer value. Data were collected from small and medium-size hotels in Indonesia and analysed using the structural equation model. The results show that entrepreneurship and human resource management were shown to be the most significant drivers of innovation and customer value. The results further suggest that interaction of entrepreneurship and integrated market orientation as well as human resource practices has significant impact on customer value and innovation respectively. Theoretical and practical implications of the study are discussed.
51902211
The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism
Innovation is often a crucial ingredient in new venture success but at present, we know relatively little about the role of individual entrepreneurs in encouraging its occurrence. The present research addressed this issue by investigating the joint effects, on firm-level innovation, of two variables pertaining to entrepreneurs (their creativity and positive affect) and a key environmental variable (environmental dynamism). Although it has been predicted that affect plays an important role in entrepreneurship [Baron, R. A., 2008. The role of affect in the entrepreneurial process. Academy of Management Review 33(2), 328-340.], relatively little empirical evidence on its effects has been obtained to date (e.g., [Foo, M.D. In press. Emotions and entrepreneurial opportunity evaluation. Entrepreneurship Theory and Practice.]). Further, although the link between creativity and innovation has been described in past literature [Amabile, T.M., 1988. A model or creativity and innovation in organizations. In B.M. Staw and L.L. Cummings (Ed.)., Research in organizational behavior 10, 123-167.], direct evidence for its existence is currently lacking. Findings of the present research indicate that positive affect among founding entrepreneurs is significantly related to their creativity and that creativity, in turn, is positively related to firm-level innovation. Both of these relationships are moderated by environmental dynamism, being stronger in highly dynamic than stable environments.
154796949
Examining the Link between Entrepreneurial Orientation and Learning Processes in Small and Medium‐Sized Enterprises
The present study unravels how small and medium-sized enterprises (SMEs) learn and determines the role that entrepreneurial orientation (EO) plays in how they learn. Adopting a multilevel perspective on learning and the unique role of the management team in SMEs, the study empirically examines the “feed‐forward” learning process initiated by the intuition and interpretation of individual managers, advanced by integration on the management team level, and brought to the organizational level by institutionalization. It also identifies firm‐level EO as an antecedent to this process on all three organizational levels, highlighting the relevance of innovativeness, proactiveness, and risk‐taking with respect to learning in SMEs.
167659579
The effect of market orientation and its components on innovation consequences: a meta-analysis
While there is a rich body of research on market orientation’s effect on business performance, much little attention has been given to its effect on innovation consequences. This is the first meta-analytic effort to study the independent effects of market orientation components (customer orientation, competitor orientation, interfunctional coordination) on innovation consequences. Also, it is the first meta-analysis to study the impact of contextual characteristics on the way market orientation affects innovation consequences. The study finds that market orientation components positively affect innovation consequences but that competitor orientation’s effect depends on a minimum level of customer orientation. The study also suggests that the relationship between market orientation and innovation consequences is stronger in highly competitive environments but weaker in technology turbulent ones. Finally, findings suggest that the relationship is stronger in large firms, service companies, and in countries characterized by high individualism and high power distance national cultures.
154979474
The Role of Networks in Small and Medium‐Sized Enterprise Innovation and Firm Performance
The objective of this paper is to understand the contribution of networks to innovation and firm performance in small and medium enterprises (SMEs). Based on longitudinal data from 1,435 SMEs, we show that strong, heterogeneous ties improve innovation in SMEs. However, the connections between network ties and firm performance are more complex than previously thought, as the positive association is mediated by innovation. Consequently, SMEs should only concentrate on cultivating and maintaining networks if they lead directly to improvements in innovation.
167674702
Innovativeness: Its antecedents and impact on business performance
Abstract In this study, we address three research questions: (1) Why are some industrial firms more innovative than others? (2) What effect does innovativeness has on business performance? (3) Does the linkage between innovativeness and business performance depend on the environmental context? Accordingly, we draw on various theoretical perspectives to develop hypotheses that propose market orientation, entrepreneurial orientation, and learning orientation as key antecedents to innovativeness, as well as a direct relationship between innovativeness and business performance. A model is devised and tested that examines these relationships in general and in the context of varying market turbulence. Findings confirm the validity of the model and afford various insights on the role of market turbulence in the proposed relationships. Lastly, implications are offered on the antecedents and consequences of organizational innovativeness.
1992707
Entrepreneurial Orientation in low- and medium-tech industries: The need for Absorptive Capacity to increase performance
The implications of Entrepreneurial Orientation (EO) for firm performance in low- and medium-tech (LMT) industries are largely unexplored and seem to be limited. In this paper we seek to address this research gap studying how Absorptive Capacity can act as a key factor determining the effectiveness of EO in such a context. Specifically, we adopt the knowledge-based view of the firm and explore the moderating effects of Absorptive Capacity’s Potential and Realized dimensions on the EO–performance relationship in LMT industries. Our regression results based on a lagged dataset of 103 medium-sized firms based in Italy confirm our hypotheses that, in LMT industries, EO has a positive effect on firm performance when coupled with high levels of both Potential and Realized Absorptive Capacity.
15866723
Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity
The literature on entrepreneurial orientation (EO) has confirmed the positive relationship between EO and firm performance and that relationship's dependence on several contingencies. The present study connects the resource-based view and its dynamic capability extension to introduce absorptive capacity (ACAP) as a moderator of the relationship between EO and firm performance. This theoretically derived research model is empirically validated using survey data from 219 small and medium-sized enterprises in Germany. Our empirical findings are that ACAP strengthens the EO–performance relationship in turbulent markets.
167578179
First‐mover advantages
This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also discussed.
49398053
The internationalisation of SMEs from China: The case of Ningxia Hui Autonomous Region
This paper aims to study the international expansion of small and medium-sized enterprises (SMEs) in an emerging economy. Mathews’ (2006: 5–27) linkage–leverage–learning (LLL) model is the framework applied to analyse the process of international expansion of SMEs. To operationalise the study of the barriers, the LLL model was linked to the work of Leonidou (2004: 279–302). The data was collected from 125 SMEs operating in Ningxia, China, and then analysed using multivariate regressions; the models used the firms’ export intensity at the regional, national and international level as dependent variables. Four models were run: two analysing the internal and external barriers hindering firms’ international expansion, and the other two models studying the characteristics of Chinese international companies (state funding and ownership) as independent variables. The results show that 12 of the barriers defined by Leonidou (2004) are hindering the expansion of Ningxia’s SMEs, that the ownership from the state does not play an important role in this expansion, and that the support from the state in the form of funds is helpful in the first stages of the expansion (regional level) and the funds from private sources are key to cross the country’s boundaries.
154672367
On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation–Performance Relationship
The relationship between entrepreneurial orientation (EO) and firm performance is among the best–researched topics in entrepreneurship research. These studies have been conducted in various national contexts. While a first meta–analysis by Rauch et al. finds no significant difference between EO's effects based on the continent in which the firm is based, the present study considers how national cultural and macroeconomic drivers impact the EO–performance relationship. Building upon 177 studies with data from 41 countries, the meta–analysis consolidates this literature stream, contributing to the evidence–based entrepreneurship research.
167370498
Market orientation, marketing capabilities, and firm performance
Drawing on traditional resource‐based theory and its recent dynamic capabilities theory extensions, we examine both the possession of a market orientation and the marketing capabilities through which resources are deployed into the marketplace as drivers of firm performance in a cross‐industry sample. Our findings indicate that market orientation and marketing capabilities are complementary assets that contribute to superior firm performance. We also find that market orientation has a direct effect on firms' return on assets (ROA), and that marketing capabilities directly impact both ROA and perceived firm performance. Copyright © 2009 John Wiley & Sons, Ltd.
197870386
Market orientation: Antecedents and consequences
This research addresses three questions: (1) Why are some organizations more market-oriented than others? (2) What effect does a market orientation have on employees and business performance? (3) D...
167414060
Market orientation, service quality and business profitability: a conceptual model and empirical evidence
The authors explore the relationships among market orientation, service quality and business profitability. Based on an empirical study of Taiwan’s security brokerage service industry, the research results show that there are positive associations among the three constructs. More market‐oriented brokerage service firms seem to enjoy superior service quality perceptions and greater profitability. Further examinations reveal that market orientation has a stronger effect on service quality than on business profitability. Also, the service quality‐profitability linkage is stronger than the market orientation‐profitability linkage. The results suggest that service quality is an intermediate factor in the market orientation‐profitability relationship and is a better indicator of the effectiveness of a market‐oriented campaign than profitability measures.
153342916
Process innovativeness in technology services organizations: Roles of differentiation strategy, operational autonomy and risk‐taking propensity
Abstract This paper examines the effect of differentiation strategy on process innovativeness in technology services organization (TSOs). In addition it examines the direct and moderating effects of two organizational constructs— operational autonomy and risk-taking propensity . Analysis of data from 102 firms in the mid-Atlantic region of the USA indicates that both differentiation strategy and operational autonomy are positively related with process innovativeness, while an organization's risk-taking propensity has no such relationship. In addition, operational autonomy moderates the relationship between differentiation strategy and process innovativeness, while no evidence was found for the moderating effect of risk-taking propensity on this relationship. Further sub-group analysis shows that in TSOs with high levels of operational autonomy, risk-taking propensity has a positive moderating effect on the above relationship. Post hoc analysis also establishes positive links among process innovativeness and firm performance.
167674270
Perceived risks and choices in entrepreneurs' new venture decisions
Risk plays an important role in entrepreneurial decision-making, yet the literature lacks sufficient empirical research to assess the ways in which elements of risk perceptions influence the entrepreneurs' venture decisions. Given the failure rate of new ventures and the rapidly-changing markets in which new ventures are founded, a better understanding of risk and its role will improve the quality of decision-making in high-risk environments. Drawing on economics and behavioral decision theory, it is argued that risk perceptions of entrepreneurs, venture characteristics, contextual effects, and characteristics of individual entrepreneurs play key roles in entrepreneurs' decisions to enter new ventures. An experimental study was conducted and a sample of entrepreneurs in the U.S.'s fastest growing firms were asked to make choices among a series of hypothetical new ventures. CEOs of 540 firms of the fastest growing public companies were contacted, all of which were male with a mean age of 47.7. The independent variables used included the variability and the degree of hazard of the ventures' anticipated outcomes. A 2 x 2 full factorial within subjects experimental design was used to manipulate the variability and hazard associated with the outcomes of new ventures. The sampled subjects did not choose ventures with a high degree of variability, but seemed willing to accept a considerable degree of hazard, or potential downside, in the new ventures in their pursuit of potentially significant gains. The results also suggest that the differences in entrepreneurs' new venture choices were influenced by differences in risk, but also by differences in the entrepreneurs' perceptions of the risks. It is recommended that investors entrust their new venture investments to entrepreneurs whose risk inclination best match the needs of both the opportunity at hand and the investor's objectives. (CBS)
167734259
Exploratory Learning, Innovative Capacity, and Managerial Oversight
When adaptation requires innovation, or the creation of variety, exploration is crucial. High levels of exploration thus imply variance-seeking rather than mean-seeking learning processes. In a study of 56 new business development projects, given high exploration, organizational learning was more effective when the projects operated with autonomy with respect to goals and supervision. As degree of exploration decreased, better results were associated with less autonomy on both counts. This contingent effect persisted even when I controlled for the emergence of deftness and comprehension.
154735478
Entrepreneurial Orientation, Risk Taking, and Performance in Family Firms
This article focuses on risk taking as one important dimension of entrepreneurial orientation and its impact in family firms. Drawing on a sample of Swedish SMEs, we find that risk taking is a distinct dimension of entrepreneurial orientation in family firms and that it is positively associated with proactiveness and innovation. We also find that even if family firms do take risks while engaged in entrepreneurial activities, they take risk to a lesser extent than nonfamily firms. Moreover, and most importantly for our understanding of entrepreneurial orientation in family firms, we find that risk taking in family firms is negatively related to performance. Both theoretical and practical implications of our findings are provided.
154942631
A success versus failure prediction model for small businesses in Singapore
Purpose - The purpose of this paper is to examine the potential success and failure of small- and medium-sized enterprises (SMEs). Design/methodology/approach - An exploratory business success versus failure (S/F) prediction model is introduced, modeled after the Lussier prediction model, using data from Singapore. Using logistic regression analysis, it is found that the Lussier model ( Findings - The Lussier model accurately predicted 85.6 percent of the surveyed firms and explained 25 percent of the variance of contributing factors to S/F, and the exploratory model explained 86.3 and 38 percent of the same, respectively. SMEs regard the top four most important factors contributing to their business S/F as: employment, training, and the retainment of high-quality staff members; prevalence of good products, services, and optimum timing in introducing these in the marketplace; excellent relationships with customers and availability of top managers with good leadership qualities. Research limitations/implications - It is surprising that while pursuing their respective business activities, the SMEs surveyed in this study regarded government policy and the availability of business finance, amongst other factors, of lesser importance compared to the above-mentioned four broad variables. Originality/value - This paper establishes benchmarks that could be helpful to decision makers for improving future business-related policy formulation and research. Business leaders could pursue their goal of ensuring business successes with better personnel management and leadership training by, for example, taking more business management and leadership courses and personal development. Government public policy makers and others could utilize such a model to assess a firm's potential for success so that society could benefit via the allocation of limited resources toward higher potential firms.
142796228
Strategic Orientations in Management Literature: Three Approaches to Understanding the Interaction between Market, Technology, Entrepreneurial and Learning Orientations
Market, technology, entrepreneurial and learning orientations have attracted major scholarly interest within their specific streams of literature for some decades. These strategic orientations are seen as principles that direct and influence the activities of a firm and generate the behaviours intended to ensure its viability and performance. Prior studies have argued that firms should develop and use multiple orientations, yet the relationship between different orientations has received only fragmented attention. This paper presents a systematic review of this literature, covering 67 scholarly articles published between 1987 and 2010 which investigate multiple orientations. The paper contributes first by summarizing the current state of knowledge on the interplay between these orientations. Many of these relationships have not been studied to any great degree, and there are research gaps in the information available on the relationships between entrepreneurial, technology and learning orientation in particular. Secondly, the paper contributes to further theoretical and empirical enquiry by synthesizing the empirical findings into a three-approach framework. The sequential, alternatives and complementary approaches to perceiving the relationship between orientations all suggest areas for further research. The sequential approach could further contribute by developing better constructs for explaining the orientation of the firm; while the alternatives approach could increase its relevance to management through the exploration of contingency settings and comparative studies. The complementary approach encourages discussion between researchers from the different streams of literature through the investigation of the relationships. It suggests focus on the investigation of both universal- and contingency-dependent-orientation configurations.
154075885
From Entrepreneurial Orientation and Learning Orientation to Business Performance: Analysing the Mediating Role of Organizational Learning and the Moderating Effects of Organizational Size
Following the organizational learning theory and the knowledge-based view approach, this contribution aims to study the influence of entrepreneurial orientation and learning orientation on organizational learning, considering the latter as a mediating variable in the relationships between both antecedent cultural values and business performance. We also analyse the moderating role of organizational size on these previous relationships. The hypotheses proposed in our research model are tested on a sample of 140 Spanish industrial companies, applying variance-based structural equation modelling: partial least squares. In order to assess the moderating effects of organizational size, we adopt a multi-group approach using two subsamples with large firms and small and mediumsized enterprises (SMEs). Our findings indicate that organizational learning partially mediates the relationship between entrepreneurial orientation and performance and fully mediates the link between learning orientation and performance. Likewise, the results reveal that the relationship established between entrepreneurial orientation and organizational learning is more intense for the group of large firms than for the group of SMEs. Moreover, the influence of learning orientation on organizational learning is greater in SMEs than in large firms.
168122428
The synergistic effect of market orientation and learning orientation on organizational performance
Although a large body of research theoretically asserts a positive relationship between market orientation and organizational performance, fewer empirical studies demonstrate it using multiple and varied organizational performance measures. Additionally, a series of recent studies have theoretically proposed, but not empirically demonstrated, that a firm’s learning orientation is likely to indirectly affect organizational performance by improving the quality of its market-oriented behaviors and directly influence organizational performance by facilitating the type of generative learning that leads to innovations in products, procedures, and systems. This empirical study supports all of these specific contentions and the more global notion that higher order learning processes may be critical in creating a sustainable competitive advantage in the firm.
167786554
Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination
Research on market orientation and organizational learning addresses how organizations adapt to their environments and develop competitive advantage. A significant void exists in current models of market orientation because none of the frameworks incorporates constructs related to innovation. The authors present a conceptual framework for incorporating constructs that pertain to innovation in market orientation research. Some of the critical relationships in this conceptual framework are tested among a sample of 9648 employees from 56 organizations in a large agency of the U.S. federal government. The results indicate that higher levels of innovativeness in the firms’ culture are associated with a greater capacity for adaptation and innovation (number of innovations successfully implemented). In addition, higher levels of innovativeness are associated with cultures that emphasize learning, development, and participative decision making. The authors make recommendations for incorporating constructs related to innovation into research on market orientation and organizational learning.
146404914
Organizational Learning: A Review of Some Literatures
Organizational learning is currently the focus of considerable attention, and it is addressed by a broad range of literatures. Organization theory, industrial econ omics, economic history, and business, management and innovation studies all approach the question of how organizations learn. A number of branches of psychology are also revealing on the issue. This paper assesses these various literatures by examining the insights they allow in three main areas: first, the goals of organizational learning; second, the learning processes in organizations; and third, the ways in which organizational learning may be facilitated and impeded. It contends that while the various literatures are revealing in particular aspects of organizational learning, a more complete understanding of its complexity requires a multi-disciplinary approach. The contributions of the different approaches are analyzed, and some areas are suggested where the transfer of analytical concepts may improve understanding.
167572195
How a learning orientation affects drivers of innovativeness and performance in service delivery
Relying on organizational innovativeness for long-term growth and profitability can be difficult, time consuming, and expensive. In the context of service delivery of 395 strategic business units (SBU) in Israel's healthcare industry, this paper examines the role of a learning-orientation as a moderator in an integrative model of organizational innovativeness. We find moderation of the impacts of risk-taking, creativity, competitor benchmarking orientation, and environmental opportunities on innovativeness. Moreover, we find the influence on performance pronounced for high learning-oriented SBUs. The paper shows that learning orientation should be considered for understanding effective innovativeness work for competitive service delivery.
154647196
Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation
Abstract This study aims to investigate the relationships between drivers of innovativeness and the mediation effects of learning orientation. A conceptual model is designed and hypotheses are constructed. In order to test the hypotheses, structural equation modeling is performed for the data collected from 333 technology-innovative small firms in South Korea. The results reveal that market orientation and entrepreneurial orientation significantly influences learning orientation, respectively. Additionally, learning orientation significantly affects innovativeness, and sequentially innovativeness has a significant effect on performance. The most notable of these is that learning orientation performs a mediating function in the relationships between market orientation and entrepreneurial orientation and innovativeness. The findings imply that managers with entrepreneurial orientation and market orientation should place much emphasis on learning orientation in order to boost innovativeness and ultimately achieve performance. Limitations include a limited number of predictors and possibility of generalizability of the results.
154403247
SMEs' Radical Product Innovation: The Role of Internally and Externally Oriented Knowledge Capabilities**
This study examines the role and contribution of specific internally (knowledge diversity and sharing capabilities) and externally oriented knowledge‐related capabilities (exploratory, transformative, and exploitative learning processes of absorptive capacity) to radical product innovation in small and medium‐sized enterprises (SMEs). It extends the current literature on the topic by considering both types of knowledge‐related capabilities and by hypothesizing and testing connections between both. Our path analysis results, based on a sample of 194 SMEs in dynamic environments, indicate that radical innovation is positively affected by exploitative learning and by the knowledge sharing capability. Implications and suggestions for future research are discussed.
55894598
Entrepreneurs' dispositional positive affect: The potential benefits – and potential costs – of being “up”
Dispositional positive affect (DPA) – the stable tendency to experience positive moods and emotions – has been found to be related to several beneficial outcomes (e.g., enhanced career success, development of high quality social relationships, improved personal health). Evidence on this issue is not entirely consistent, however, and high levels of dispositional positive affect have sometimes been found to also be associated with detrimental outcomes (e.g., reduced task performance, biased recall of information, increased impulsivity). A framework is proposed for integrating these seemingly inconsistent findings and applying the result to entrepreneurs. Briefly, this model suggests that there are discrete limits to the benefits conferred by DPA because at very high levels, processes that interfere with specific aspects of cognition, perception, motivation, and self-regulation, operate. The overall result is a curvilinear relationship between entrepreneurs' level of DPA and their performance of tasks closely related to new venture development and growth (e.g., opportunity recognition and evaluation, effective decision making). Factors that make entrepreneurs especially susceptible to negative effects of high levels of DPA are described, and theoretical and practical implications of the proposed model are discussed.
154625699
Impact of TQM and organizational learning on innovation performance in the high-tech industry
Many scholars have suggested that both total quality management (TQM) and organizational learning can individually and effectively promote innovation. However, the question remains as to whether a relationship exists between TQM and organizational learning. This study has three main goals: (1) to determine the relationships between TQM, organizational learning, and innovation performance; (2) to determine if organizational learning fosters innovation performance and plays a mediating role between TQM and innovation performance, and (3) to test a proposed model explaining the relationships among TQM, organizational learning, and innovation performance through empirical examination. Using a self-administered survey to sample Taiwanese high-tech industry companies, this study examines four hypotheses and tests the proposed model. The principal findings of this study are as follows; (1) SEM analysis shows that the TQM-organizational learning-innovation performance model has goodness-of-fit, (2) TQM has significant and positive effects on organizational learning, and (3) TQM and organizational learning have both significant and positive effects on innovation performance.
15566580
Entrepreneurial orientation and network board diversity in network organizations
This study extends the concept of entrepreneurial orientation (EO) to the network level to investigate how diversity among officers serving on network organization boards affects network-level entrepreneurial orientation (NEO). Using data from 53 strategic network organizations across five years, we found that insider/outsider and functional diversity among network board members promotes NEO. The results also demonstrate that board group tenure moderates the influence of diversity in opposite ways. The impact of board insider/outsider diversity is stronger in networks in which board members lack long tenure. On the contrary, the effect of functional diversity on network entrepreneurial orientation is stronger in network organizations with tenured boards.
167415842
A scale for measuring attitude toward private label products and an examination of its psychological and behavioral correlates
A measure of consumers’ attitude toward private label brands is developed, and its psychometric properties are assessed. Predictions are then tested regarding relationships between private label attitude and (1) latent perceptual and sales promotion constructs, and (2) purchase behaviors measured in a field setting. The measure is positively related to value consciousness, deal proneness, and smart-shopper self-perceptions, and negatively related to the propensity to be brand loyal and hold price-quality perceptions. Predictive validity of the private label measure is supported by a positive relationship with private label purchases from a grocery store shopping trip. Despite a positive relationship between the latent constructs of private label attitude and deal proneness, the consumer segment that allocated a high percentage of total purchases to private label products made fewer purchases on sale or with a coupon. These findings suggest that consumers may choose between price-related deals and private label purchases.
16416502
STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
167350305
Age cohort analysis in adoption of mobile data services: gen Xers versus baby boomers
Purpose – This study aims to examine the differences in adoption of mobile data services between two age cohorts (gen Xers and baby boomers). Three elements in the extended Technology Acceptance Model – perceived usefulness, perceived ease of use, and perceived fun – were used to identify the differences in adoption of mobile data services for the two age cohorts.Design/methodology/approach – A sample of 200 mobile services users drawn from a purchased consumer panel participated in an online survey. Of this sample, 67 gen Xers and 86 baby boomers were used for the analysis (n=153). Multigroup structural equation modeling analysis was used to examine the differences in adoption of mobile data services between the two age cohorts.Findings – This study found that baby boomers perceived mobile data services as more difficult to use than gen Xers. However, the perception of usefulness of mobile data services was stronger for the baby boomers than gen Xers. Usefulness of mobile data services may be a critical ...
189887782
On the evaluation of structural equation models
Criteria for evaluating structural equation models with latent variables are defined, critiqued, and illustrated. An overall program for model evaluation is proposed based upon an interpretation of converging and diverging evidence. Model assessment is considered to be a complex process mixing statistical criteria with philosophical, historical, and theoretical elements. Inevitably the process entails some attempt at a reconcilation between so-called objective and subjective norms.
57987706
A primer on partial least squares structural equation modeling (PLS-SEM)
With applications using SmartPLS (www.smartpls.com)—the primary software used in partial least squares structural equation modeling (PLS-SEM)—this practical guide provides concise instructions on how to use this evolving statistical technique to conduct research and obtain solutions. Featuring the latest research, new examples, and expanded discussions throughout, the Second Edition is designed to be easily understood by those with limited statistical and mathematical training who want to pursue research opportunities in new ways.
55144522
Reframing Customer Value in a Service-Based Paradigm: An Evaluation of a Formative Measure in a Multi-industry, Cross-cultural Context
Customer value has received much attention in the recent marketing literature, but relatively little research has specifically focused on inclusion of service components when defining and operationalizing customer value. The purpose of this study is to gain a deeper understanding of customer value by examining several service elements, namely service quality, service equity, and relational benefits, as well as perceived sacrifice, in customer assessments of value. A multiple industry, cross-cultural setting is used to substantiate our inclusion of service components and to examine whether customer value is best modeled using formative or reflective measures. Our results suggest conceptualizing customer value with service components can be supported empirically, the use of formative components of service value can be supported both theoretically and empirically and is superior to a reflective operationalization of the construct, and that our measure is a robust one that works well across multiple service contexts and cultures.
166923640
Product quality as a formative index: Evaluating an alternative measurement approach
Product quality is a critical competitive issue when launching new products. However, the product quality construct has been measured inconsistently in prior research, with researchers often not considering multiple components of quality. Thus, results may not be comparable across studies, and when dimensions of quality are excluded, relationships found between quality and other constructs may be spurious. As a response, we develop a formative measurement approach to product quality. The components of product quality are not interchangeable in measurement as typical reflective approaches assume. These dimensions make up the quality construct, necessitating a formative measurement approach. Here, this approach is developed and tested, compared with the traditional reflective approach, and its relationships with other constructs evaluated in a model of new product performance. Overall, this formative approach is shown both to be theoretically appropriate and to possess strong measurement properties. This approach has clear implications for research concerning product quality and improving its measurement in the future.
155482271
Entrepreneurial orientation and market orientation as drivers of product innovation success: A study of exporters from a developing economy
This paper explores how two specific market-based resources, export entrepreneurial-oriented and export market-oriented behaviours, act to drive the performance of firms’ product innovations in their export markets. Drawing upon data from 164 Ghanaian exporters, the results indicate that both export entrepreneurial-oriented behaviour and export market-oriented behaviour drive export product innovation success. Entrepreneurial-oriented behaviour is more likely to be a driver of product innovation success when market-oriented behaviour is strong. This joint effect is more substantial when market dynamism is strong Individually, entrepreneurial-oriented and market-oriented behaviours are more likely to be related to export product innovation success when market dynamism is high. The theoretical and practical implications are discussed.
6421190
Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity
A firm's organizational and technological boundaries are two important demarcation lines when sourcing for technology. Based on this theoretical lens, four possible combinations of exploration and exploitation emerge. Applying an ambidexterity perspective to a firm's technology sourcing strategy, we hypothesize that a curvilinear relationship exists between a firm's technology sourcing mix and its performance. We further introduce a contingency element by proposing that a firm's absorptive capacity exerts a positive moderating effect on this relationship. We empirically test these hypotheses on a random, multi-industry sample of U.S. manufacturing companies. We find support for the notion that the relationship between technology sourcing mix and firm performance is an inverted U-shape. Moreover, higher levels of absorptive capacity allow a firm to more fully capture the benefits resulting from ambidexterity in technology sourcing.
153657172
The Organizational Pervasiveness of Entrepreneurial Orientation
While 30 years of entrepreneurial orientation (EO) research has demonstrated that EO provides critical insights into questions of organizational–level strategy and performance, how EO manifests inside organizations has received little attention. Instead of assuming that EO is homogenous, we examine the questions of how and why EO might pervade organizations heterogeneously along three dimensions: vertically across hierarchy levels, horizontally across business units, and temporally as an organization develops. We then present three models for how EO can dynamically pervade organizations and discuss how examining the pervasiveness of EO can further our understanding of entrepreneurship as an organizational phenomenon.
154263404
Empirical research on entrepreneurial orientation: An assessment and suggestions for future research
Entrepreneurial orientation (EO) is one of the most widely accepted firm-level constructs in the literature. The present study provides a comprehensive qualitative review and evaluation of the empirical EO literature. It finds that EO research has made considerable strides in recent years and is accelerating and broadening, although notable biases and inconsistencies in variable choice and model specification remain. The article sheds light on the popularity of Miller’s unidimensional conceptualization of EO, as well as the rise in multidimensional explorations of the phenomenon. It concludes with a discussion of the implications of the study’s findings for EO-related research and practice.