IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v146y2022icp107-117.html
   My bibliography  Save this article

A capability-anchored articulation of the EO-organizational performance relationship in emergent and post-emergent organizations

Author

Listed:
  • D'Souza, Derrick E.
  • Fan, Gang

Abstract

There have been mixed scholarly findings on the relationship between entrepreneurial orientation (EO) and organizational performance, and a framework that adequately explains the mixed results has not emerged. We address this gap and contribute to the literature in two ways. First, we develop a capability-anchored articulation of the EO-organizational performance relationship. Second, we use this articulation to explain mixed findings on the relationship between EO and organizational performance. Our development indicates a negative and curvilinear relationship between EO and organizational performance for emergent organizations. and a positive and curvilinear relationship for post-emergent organizations. Further, our development indicates an inverted U-shaped relationship for a mixed sample of emergent and post-emergent organizations. Contributions to future research include exploring theoretical extensions of the EO-organizational performance relationship and an opportunity to reconceptualize the EO construct by leveraging the capability-based view of the organization.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbrese:v:146:y:2022:i:c:p:107-117
    DOI: 10.1016/j.jbusres.2022.03.069
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632200306X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.03.069?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. Jintong Tang & Zhi Tang & Louis D. Marino & Yuli Zhang & Qianwen Li, 2008. "Exploring an Inverted U–Shape Relationship between Entrepreneurial Orientation and Performance in Chinese Ventures," Entrepreneurship Theory and Practice, , vol. 32(1), pages 219-239, January.
    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. 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.
    4. Paul Hughes & Ian R. Hodgkinson & Mathew Hughes & Darwina Arshad, 2018. "Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 1025-1053, December.
    5. Keith D. Brouthers & George Nakos & Pavlos Dimitratos, 2015. "SME Entrepreneurial Orientation, International Performance, and the Moderating Role of Strategic Alliances," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1161-1187, September.
    6. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    7. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    8. David J. Teece, 2019. "A capability theory of the firm: an economics and (Strategic) management perspective," New Zealand Economic Papers, Taylor & Francis Journals, vol. 53(1), pages 1-43, January.
    9. Patrick M. Kreiser, 2011. "Entrepreneurial Orientation and Organizational Learning: The Impact of Network Range and Network Closure," Entrepreneurship Theory and Practice, , vol. 35(5), pages 1025-1050, September.
    10. Bereket Mamo Buli, 2017. "Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry," Management Research Review, Emerald Group Publishing Limited, vol. 40(3), pages 292-309, March.
    11. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.
    12. Paul Shrivastava, 1983. "A Typology Of Organizational Learning Systems," Journal of Management Studies, Wiley Blackwell, vol. 20(1), pages 7-28, January.
    13. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    14. Bradley A. George, 2011. "Entrepreneurial Orientation: A Theoretical and Empirical Examination of the Consequences of Differing Construct Representations," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1291-1313, September.
    15. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    16. Argyris, Chris, 1977. "Organizational learning and management information systems," Accounting, Organizations and Society, Elsevier, vol. 2(2), pages 113-123, March.
    17. 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.
    18. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    19. Shaker A. Zahra, 1993. "A Conceptual Model of Entrepreneurship as Firm Behavior: A Critique and Extension," Entrepreneurship Theory and Practice, , vol. 17(4), pages 5-21, July.
    20. Gema Albort-Morant & Jörg Henseler & Gabriel Cepeda-Carrión & Antonio L. Leal-Rodríguez, 2018. "Potential and Realized Absorptive Capacity as Complementary Drivers of Green Product and Process Innovation Performance," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    21. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    22. Avlonitis, George J. & Salavou, Helen E., 2007. "Entrepreneurial orientation of SMEs, product innovativeness, and performance," Journal of Business Research, Elsevier, vol. 60(5), pages 566-575, May.
    23. 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.
    24. Haifeng Qian & Zoltán J. Ács, 2015. "An absorptive capacity theory of knowledge spillover entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 9, pages 161-173, Edward Elgar Publishing.
    25. Yongbin Zhao & Yuan Li & Soo Hoon Lee & Long Bo Chen, 2011. "Entrepreneurial Orientation, Organizational Learning, and Performance: Evidence from China," Entrepreneurship Theory and Practice, , vol. 35(2), pages 293-317, March.
    26. 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.
    27. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    28. 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.
    29. 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.
    30. Zahra, Shaker A. & Filatotchev, Igor & Wright, Mike, 2009. "How do threshold firms sustain corporate entrepreneurship? The role of boards and absorptive capacity," Journal of Business Venturing, Elsevier, vol. 24(3), pages 248-260, May.
    31. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    32. Rafael Sancho-Zamora & Isidro Peña-García & Santiago Gutiérrez-Broncano & Felipe Hernández-Perlines, 2021. "Moderating Effect of Proactivity on Firm Absorptive Capacity and Performance: Empirical Evidence from Spanish Firms," Mathematics, MDPI, vol. 9(17), pages 1-15, August.
    33. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    34. David J. Collis, 1994. "Research Note: How Valuable are Organizational Capabilities?," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 143-152, December.
    35. Cuervo-Cazurra, Alvaro & Rui, Huaichuan, 2017. "Barriers to absorptive capacity in emerging market firms," Journal of World Business, Elsevier, vol. 52(6), pages 727-742.
    36. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    37. 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.
    38. 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.
    39. 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.
    40. Aldrich Howard E. & Yang Tiantian, 2012. "What Did Stinchcombe Really Mean? Designing Research to Test the Liability of Newness among New Ventures," Entrepreneurship Research Journal, De Gruyter, vol. 2(3), pages 1-14, July.
    41. John A. Pearce II & David A. Fritz & Peter S. Davis, 2010. "Entrepreneurial Orientation and the Performance of Religious Congregations as Predicted by Rational Choice Theory," Entrepreneurship Theory and Practice, , vol. 34(1), pages 219-248, January.
    42. Kohtamäki, Marko & Heimonen, Jesse & Parida, Vinit, 2019. "The nonlinear relationship between entrepreneurial orientation and sales growth: The moderating effects of slack resources and absorptive capacity," Journal of Business Research, Elsevier, vol. 100(C), pages 100-110.
    43. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    44. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    45. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    46. David J. Teece, 2017. "Towards a capability theory of (innovating) firms: implications for management and policy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 41(3), pages 693-720.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boris Urban & Fikile Kanguwe, 2024. "Organisational configurations explaining the entrepreneurial orientation–performance–environment relationship: a focus on bricolage capability, organisational identity and absorptive capacity," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-29, December.
    2. Dr. Titus M. Kising’u & Ruwaida Hassan Mwajambia, 2022. "Dynamic Managerial Capabilities on Firm Performance: Evidence from Travel Agencies and Tour Operators in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 770-783, May.
    3. Mion, Giorgio & Loza Adaui, Cristian R. & Bonfanti, Angelo & De Crescenzo, Veronica, 2023. "Mission statements and financial and sustainability performance: An exploratory study of Benefit Corporations certified as B Corps," Journal of Business Research, Elsevier, vol. 157(C).

    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. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    2. Kohtamäki, Marko & Heimonen, Jesse & Sjödin, David & Heikkilä, Vili, 2020. "Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory," Journal of Business Research, Elsevier, vol. 118(C), pages 12-25.
    3. 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.
    4. 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.
    5. 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.
    6. Feifei Jiang & Gang Wang & Xu Jiang, 2019. "Entrepreneurial orientation and organizational knowledge creation: A configurational approach," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1193-1219, December.
    7. 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.
    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. Lahcene Makhloufi & Abderrazak Ahmed Laghouag & Alhussain Ali Sahli & Fateh Belaid, 2021. "Impact of Entrepreneurial Orientation on Innovation Capability: The Mediating Role of Absorptive Capability and Organizational Learning Capabilities," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    10. Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Javier Martínez-Falcó, 2022. "Driving Innovation by Managing Entrepreneurial Orientation, Cooperation and Learning for the Sustainability of Companies in the Energy Sector," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    11. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    12. 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.
    13. 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.
    14. Lixin Sheng & Jibao Gu & Jianlin Wu, 2023. "How does entrepreneurial orientation influence firm performance? The roles of corporate social responsibility and institutional environments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 2021-2036, July.
    15. 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.
    16. J. Ruben Boling & Torsten M. Pieper & Jeffrey G. Covin, 2016. "CEO Tenure and Entrepreneurial Orientation within Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 40(4), pages 891-913, July.
    17. Li, Linwei & Jiang, Feifei & Pei, Yunlong & Jiang, Nengqian, 2017. "Entrepreneurial orientation and strategic alliance success: The contingency role of relational factors," Journal of Business Research, Elsevier, vol. 72(C), pages 46-56.
    18. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.
    19. 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.
    20. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Bryde, David J. & Giannakis, Mihalis & Foropon, Cyril & Roubaud, David & Hazen, Benjamin T., 2020. "Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 226(C).

    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:eee:jbrese:v:146:y:2022:i:c:p:107-117. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.