IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v39y2024i1p143-161.html
   My bibliography  Save this article

Unraveling the Nexus between Entrepreneurial Orientation, Effect Reasoning, and Digital Transformation in Enterprises

Author

Listed:
  • Hui Ding

    (Centre of Postgraduate Studies, Asia Metropolitan University (AMU), Malaysia.)

Abstract

This study investigates the intricate relationship between entrepreneurial orientation (EO), effect reasoning (ER), and digital transformation (DT) in enterprises. Drawing on established literature, it hypothesizes that EO positively influences ER formation, which, in turn, fosters DT. The research employs a quantitative approach, utilizing regression analysis to test the proposed hypotheses. Findings indicate a direct positive relationship between EO and DT, suggesting that enterprises with higher EO are more inclined towards digital initiatives. Additionally, the study reveals that EO promotes the formation of different patterns of ER, including experimental, flexible, pre-commitment, and tolerable loss reasoning. Importantly, ER emerges as a significant predictor of DT, mediating the relationship between EO and DT. These findings underscore the pivotal role of ER as a cognitive mechanism driving digital transformation efforts in enterprises. The study contributes to the literature by providing empirical evidence of the interplay between EO, ER, and DT, offering insights for practitioners seeking to navigate the complexities of digital transformation.

Suggested Citation

  • Hui Ding, 2024. "Unraveling the Nexus between Entrepreneurial Orientation, Effect Reasoning, and Digital Transformation in Enterprises," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 143-161.
    • Handle: RePEc:aif:journl:v:39:y:2024:i:1:p:143-161
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/2428.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-39-issue-1/6952
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brettel, Malte & Mauer, René & Engelen, Andreas & Küpper, Daniel, 2012. "Corporate effectuation: Entrepreneurial action and its impact on R&D project performance," Journal of Business Venturing, Elsevier, vol. 27(2), pages 167-184.
    2. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    3. Peng Sun & Xiaode Zuo, 2023. "Globalizing Hainan Tourism Products: Lessons from Canadian Tourism Operations Management," International Journal of Science and Business, IJSAB International, vol. 25(1), pages 1-11.
    4. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    5. Peng Sun & Xiaode Zuo, 2023. "The Missing Piece: Incorporating Organizational Factors in Employee Motivation Research," International Journal of Science and Business, IJSAB International, vol. 25(1), pages 24-33.
    6. Peng Sun & Xiaode Zuo, 2023. "Unleashing the Power of Employee Helping Behavior: A Comprehensive Study," International Journal of Science and Business, IJSAB International, vol. 25(1), pages 34-66.
    7. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    8. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Peng Sun & Xiaode Zuo & Xin Liu & Hui Huang & Mengting Wen, 2024. "Inclusive Leadership: Beyond Diversity to True Equity," International Journal of Science and Business, IJSAB International, vol. 33(1), pages 34-43.
    10. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    11. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    12. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    13. Read, Stuart & Song, Michael & Smit, Willem, 2009. "A meta-analytic review of effectuation and venture performance," Journal of Business Venturing, Elsevier, vol. 24(6), pages 573-587, November.
    14. Peng Sun & Xiaode Zuo, 2023. "The Rise of Chinese Entrepreneurs in Canada: From Immigrant to Influencer," International Journal of Science and Business, IJSAB International, vol. 25(1), pages 12-23.
    15. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2008. "Outlines of a behavioral theory of the entrepreneurial firm," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 37-59, April.
    16. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li Peng & Yuan Li & Marc Essen & Mike W. Peng, 2020. "Institutions, resources, and strategic orientations: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 499-529, June.
    2. Saadat Saeed & Shumaila Y. Yousafzai & Andreas Engelen, 2014. "On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation–Performance Relationship," Entrepreneurship Theory and Practice, , vol. 38(2), pages 255-290, March.
    3. Yujie Zhang, 2024. "Exploring the Nexus: IT Capabilities, Digital Transformation, and Innovation in Traditional Manufacturing," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 22-45.
    4. Jintong Tang & Zhi Tang & Birton J. Cowden, 2017. "Exploring the Relationship between Entrepreneurial Orientation, CEO Dual Values, and SME Performance in State–Owned vs. Nonstate–Owned Enterprises in China," Entrepreneurship Theory and Practice, , vol. 41(6), pages 883-908, November.
    5. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    6. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    7. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    8. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    9. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    10. Antonio Rodríguez-Peña, 2023. "Corporate entrepreneurship and firm performance relationship under the moderating effect of environmental dynamism: Replication and extension analysis," Journal of International Entrepreneurship, Springer, vol. 21(4), pages 550-585, December.
    11. Semrau, Thorsten & Biemann, Torsten, 2022. "When sergeants can outrank generals: Person-organization fit and the performance of franchisees as agents of their franchisor," Journal of Business Venturing, Elsevier, vol. 37(2).
    12. Mitja Ruzzier & Evan J. Douglas & Maja Konečnik Ruzzier & Jana Hojnik, 2020. "International Entrepreneurial Orientation and the Intention to Internationalize," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    13. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2021. "Innovation Orientation in Business Services," Books, Edward Elgar Publishing, number 19897.
    14. Wei Zhang, 2024. "Driving Competitive Advantage: A Study of Dynamic Capability and Digital Maturity in the Electronic Manufacturing Industry," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 1-21.
    15. Shih-Kai Lin & Hung-Chang Chung, 2023. "The Relationship Between Entrepreneurial Orientation and Firm Performance From the perspective of MASEM: The Mediation Effect of Market Orientation and the Moderated Mediation Effect of Environmental ," SAGE Open, , vol. 13(4), pages 21582440231, December.
    16. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    17. Ibrahim MusahDONKOH & Hieu Minh VU & Chijioke NWACHUKWU, 2021. "entrepreneurial orientation and small and medium entreprises profitabiliy in Ghana," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 13(1), pages 32-43, March.
    18. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    19. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    20. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:39:y:2024:i:1:p:143-161. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.