How Multidimensional Approach of Entrepreneurial Orientation (EO) Effect Firm Performance: A Critical Review

Didip Diandra, Ahmad Azmy

Abstract


Research aims: This research aims to have a better understanding of relationship between EO and firm performance, a critical review of multidimensional approach to EO-firm performance is conducted in this paper.

Design/Methodology/Approach: This is a qualitative research method which follow rigor of literature review and matrix review process from the selected papers. This paper aims to synthesize, evaluate the review, and then represent the dimension of EO on firm performance from multidimensional approach.

Research findings: This study advances integrative framework to represent EO dimensions which explicates some pathways for entrepreneurs to implement EO on their business organization, else, in order to elevate sustainable growth. Also, this study concludes the most effective EO recipes for firm performance.

Theoretical contribution/ Originality: This study does not only discuss the importance of EO in firm performance but also describe on how firms able to attain best performance in uncertain condition. The author stated innovativeness and competitive aggressiveness as the best EO recipes for enhancing firm performance.

Practitioner/Policy implication: This study gives beneficial information to entrepreneurs about EO dimensions for enhancing firm performance.

Research limitation/Implication: The study is limited to ten selected papers that confirms the application of EO dimensions on firm performance. Future research should explore more factors that explain EO-Firm relationship

Keywords


Entrepreneurial Orientation; Firm Performance; Competitive Strategy; Critical Review; Multidimensional Approach

Full Text:

PDF

References


Chen, L., Zou, S., Xu, H., & Chen, Y. (2019). Entrepreneurial orientation in multinational corporations: Antecedents and effects. Management International Review, 60(1), 123-148. https://doi.org/10.1007/s11575-019-00397-4

Covin, J. G., & Wales, W. J. (2018). Crafting high-impact entrepreneurial orientation research: Some suggested guidelines. Entrepreneurship theory and practice, 43(1), 3-18. https://doi.org/10.1177/1042258718773181

Dess, G. G., & Lumpkin, G. T. (2005). The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship. Academy of Management Perspectives, 19(1), 147–156. https://doi.org/10.5465/ame.2005.15841975

Huang, S. K., Wang, Y. L. (2011). Entrepreneurial orientation, learning orientation, and innovation in small and medium enterprises. Procedia Social and Behavioral Sciences, 24, 563-570. https://doi.org/10.1016/j.sbspro.2011.09.004

Linton, G., & Kast, J. (2016). Configurations of entrepreneurial orientation and competitive strategy for high performance. Journal of Business Research, 70(1), 168-176. https://doi.org/10.1016/j.jbusres.2016.08.022

Lisboa, A., Skarmeas, D., Saridakis, C. (2015). Entrepreneurial orientation pathways to performance: a fuzzy-set analysis. Journal of Business Research, 69(4), 1319-1324. https://doi.org/10.1016/j.jbusres.2015.10.099

Loong Lee, W., Chong, A. L., & Ramayah, T. (2019). The effects of entrepreneurial orientation on the performance of the Malaysian manufacturing sector. Asia-Pacific Journal of Business Administration, 11(1), 30–45. https://doi.org/10.1108/APJBA-06-2018-0099

Lumpkin, G.T., & Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. https://doi.org/10.2307/258632

McGee, J. E., & Peterson, M. (2017). The long-term impact of entrepreneurial self-efficacy and entrepreneurial orientation on venture performance. Journal of Small Business Management, 57(3), 720-737. https://doi.org/10.1111/jsbm.12324

Mullens, D. (2018). Entrepreneurial orientation and sustainability initiatives in family firms. Journal of Global Responsibility, 9(2), 160–178. https://doi.org/10.1108/JGR-03-2017-0020

Porter, M. E. (1980). Competititve strategy. New York: Free Press.

Poudel, K. P., Carter, R., & Lonial, S. (2018). The impact of entrepreneurial orientation, technological capability, and consumer attitude on firm performance: A multi-theory perspective. Journal of Small Business Management, 57(S2), 268-295. https://doi.org/:10.1111/jsbm.12471

Putnins, T. J., & Sauka, A. (2019). Why does entrepreneurial orientation affect company performance. Strategic Entrepreneurship Journal, 1-25. https://doi.org/10.1002/sej.1325

Radipere, S. (2014). The effect of entrepreneurial orientation on business performance. Mediterranian Journal of Social Sciences, 5(16), 141-152. https://doi.org/10.5901/mjss.2014.v5n16p141

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x

Shan, P., Song, M., Ju, X. (2015). Entrepreneurial Orientation and Performance: Is Innovation Speed a Missing Link?. Jurnal of Business Research, 69(2), 683-690. https://doi.org/10.1016/j.jbusres.2015.08.032

Solikahan, E. Z., & Mohammad, A. (2019). Development of entrepreneurial orientation. International Journal of Applied Business & International Management, 4(1), 31-37. https://doi.org/10.32535/ijabim.v4i1.380

Wales, W. J. (2015). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3-15. https://doi.org/10.1177/0266242615613840

Wang, X., Dass, M., Arnett, D. B., & Yu, X. (2019). Understanding firms’ relative strategic emphases: an entrepreneurial orientation explanation. Industrial Marketing Management, 84(2020), 151-164. https://doi.org/10.1016/j.indmarman.2019.06.009

Wiklund, J. (1999). The sustainability of the entrepreneurial orientation-performance relationship. Entrepreneurship Theory & Practices, 24(1), 37-48. https://doi.org/10.1177/104225879902400103




DOI: https://doi.org/10.18196/mabis.v12i1.9743

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Didip Diandra, Ahmad Azmy

License URL: https://creativecommons.org/licenses/by-sa/4.0/


Office: 

Ruang Jurnal Manajemen Bisnis, 
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/mb - E-mail: mabis@umy.ac.id
Phone: +62 274 387 656 (ext: 118)

Jurnal Manajemen Bisnis is licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)