IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v8y2018i3p17n3.html
   My bibliography  Save this article

Entrepreneurial Orientation, Control Systems, and New Venture Performance: A Dominant Logic Perspective

Author

Listed:
  • Su Zhongfeng

    (School of Management, Xi’an Jiaotong University, Xi’an, China)

  • Wang Donghan

    (Faculty of Economics and Management, Communication University of China, Beijing, China)

Abstract

Drawing on the dominant logic perspective, this study argues that entrepreneurial orientation (EO) can generate an entrepreneurial dominant logic among new ventures that facilitate making and implementing decisions to experiment with entrepreneurial initiatives. Yet, the decisions are associated with high uncertainty. Since new ventures cannot endure high levels of uncertainty, to harness the potential of EO they should put in place proper control systems to reduce uncertainty associated with EO. This study examines the moderating role of output control, behavior control, and input control in the relationship of EO to new venture performance. It finds that both output control and behavior control have positive moderating effects but input control plays a negative moderating role. The findings enrich our knowledge on the EO–performance linkage. Moreover, this study represents one of the first attempts to adopt the dominate logic perspective to illustrate EO phenomena, laying down a solid threshold over which to introduce the perspective to the EO literature. And, by combining EO and control systems in a moderating model this study responds to appeals for extending control systems into entrepreneurship studies and thereby contributes to research on control systems.

Suggested Citation

  • Su Zhongfeng & Wang Donghan, 2018. "Entrepreneurial Orientation, Control Systems, and New Venture Performance: A Dominant Logic Perspective," Entrepreneurship Research Journal, De Gruyter, vol. 8(3), pages 1-17, July.
    • Handle: RePEc:bpj:erjour:v:8:y:2018:i:3:p:17:n:3
    DOI: 10.1515/erj-2017-0123
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2017-0123
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2017-0123?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Johan Wiklund & Dean A. Shepherd, 2011. "Where to from Here? EO-as-Experimentation, Failure, and Distribution of Outcomes," Entrepreneurship Theory and Practice, , vol. 35(5), pages 925-946, September.
    3. Yuan Li & Soo-Hoon Lee & Xiyao Li & Yi Liu, 2010. "Knowledge Codification, Exploitation, and Innovation: The Moderating Influence of Organizational Controls in Chinese Firms," Management and Organization Review, The International Association for Chinese Management Research, vol. 6(2), pages 219-241, July.
    4. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    5. Pankaj C. Patel & Marko Kohtamäki & Vinit Parida & Joakim Wincent, 2015. "Entrepreneurial orientation-as-experimentation and firm performance: The enabling role of absorptive capacity," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1739-1749, November.
    6. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    7. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    8. Laurie J. Kirsch, 1996. "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science, INFORMS, vol. 7(1), pages 1-21, February.
    9. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    10. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    11. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    12. Laura B. Cardinal & Sim B. Sitkin & Chris P. Long, 2004. "Balancing and Rebalancing in the Creation and Evolution of Organizational Control," Organization Science, INFORMS, vol. 15(4), pages 411-431, August.
    13. Tomasz Obloj & Krzysztof Obloj & Michael G. Pratt, 2010. "Dominant logic and entrepreneurial firms' performance in a transition economy," Post-Print hal-00623887, HAL.
    14. Söderblom, Anna & Samuelsson, Mikael & Wiklund, Johan & Sandberg, Rickard, 2015. "Inside the black box of outcome additionality: Effects of early-stage government subsidies on resource accumulation and new venture performance," Research Policy, Elsevier, vol. 44(8), pages 1501-1512.
    15. Li, Yuan & Lee, Soo-Hoon & Li, Xiyao & Liu, Yi, 2010. "Knowledge Codification, Exploitation, and Innovation: The Moderating Influence of Organizational Controls in Chinese Firms," Management and Organization Review, Cambridge University Press, vol. 6(2), pages 219-241, July.
    16. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    17. Green, Kimberly M. & Covin, Jeffrey G. & Slevin, Dennis P., 2008. "Exploring the relationship between strategic reactiveness and entrepreneurial orientation: The role of structure-style fit," Journal of Business Venturing, Elsevier, vol. 23(3), pages 356-383, May.
    18. Alfred M. Jaeger & B. R. Baliga, 1985. "Control systems and strategic adaptation: Lessons from the Japanese experience," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 115-134, April.
    19. Schneider, Markus & Engelen, Andreas, 2015. "Enemy or friend? The cultural impact of cross-functional behavior on the EO–performance link," Journal of World Business, Elsevier, vol. 50(3), pages 439-453.
    20. 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.
    21. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    22. Su, Zhongfeng & Peng, Jisheng & Shen, Hao & Xiao, Ting, 2013. "Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions," Management and Organization Review, Cambridge University Press, pages 115-138.
    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. Schweiger, & Baldauf,, 2016. "„Entrepreneurial Orientation“: Eine Bestandsaufnahme der Konstruktschärfe," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(4), pages 423-447.
    2. 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.
    3. 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.
    4. Galina Shirokova & Karina Bogatyreva & Tatiana Beliaeva, 2015. "Entrepreneurial Orientation of Russian Firms: The Role of External Environment," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(3), pages 6-25.
    5. 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.
    6. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.
    7. Sahi, Gurjeet Kaur & Gupta, Mahesh C. & Cheng, T.C.E., 2020. "The effects of strategic orientation on operational ambidexterity: A study of indian SMEs in the industry 4.0 era," International Journal of Production Economics, Elsevier, vol. 220(C).
    8. Jiang, Xu & Liu, Heng & Fey, Carl & Jiang, Feifei, 2018. "Entrepreneurial orientation, network resource acquisition, and firm performance: A network approach," Journal of Business Research, Elsevier, vol. 87(C), pages 46-57.
    9. Miaomiao Yin & Mathew Hughes & Qilin Hu, 2021. "Entrepreneurial orientation and new venture resource acquisition: why context matters," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1369-1398, December.
    10. D'Souza, Derrick E. & Fan, Gang, 2022. "A capability-anchored articulation of the EO-organizational performance relationship in emergent and post-emergent organizations," Journal of Business Research, Elsevier, vol. 146(C), pages 107-117.
    11. William E. Baker & Amir Grinstein & Marcelo G. Perin, 2020. "The Impact of Entrepreneurial Orientation on Foreign Market Entry: the Roles of Marketing Program Adaptation, Cultural Distance, and Unanticipated Events," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 63-91, March.
    12. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    13. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    14. Lin Song & Li Jing, 0. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    15. Vishal Gupta & Sandra C. Mortal & Tina Yang, 2018. "Entrepreneurial orientation and firm value: Does managerial discretion play a role?," Review of Managerial Science, Springer, vol. 12(1), pages 1-26, January.
    16. Lin Song & Li Jing, 2017. "Strategic orientation and performance of new ventures: empirical studies based on entrepreneurial activities in China," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 989-1012, December.
    17. Dorian Boumedjaoud & Karim Messeghem, 2020. "Stratégie repreneuriale et performance en PME : rôle du mentorat dans la reprise externe," Post-Print hal-02569219, HAL.
    18. Wales, W. & Shirokova, G. & Bogatyreva, K. & Germain, R., 2018. "Foreign Motivations: How International Exposure Shapes Firms' Entrepreneurial Orientation in Emerging Market," Working Papers 15121, Graduate School of Management, St. Petersburg State University.
    19. Hunt, Richard A., 2021. "Entrepreneurial orientation and the fate of corporate acquisitions," Journal of Business Research, Elsevier, vol. 122(C), pages 241-255.
    20. Tobias Karmann & René Mauer & Tessa C. Flatten & Malte Brettel, 2016. "Entrepreneurial Orientation and Corruption," Journal of Business Ethics, Springer, vol. 133(2), pages 223-234, January.

    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:bpj:erjour:v:8:y:2018:i:3:p:17:n:3. 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: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    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.