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Entrepreneurial orientation (EO) and human resources outsourcing (HRO): A “HERO” combination for SME performance

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  • Irwin, Kristin C.
  • Landay, Karen M.
  • Aaron, Joshua R.
  • McDowell, William C.
  • Marino, Louis D.
  • Geho, Patrick R.

Abstract

Small/medium enterprises (SMEs) constitute most firms in the United States; thus, the issues that impact their performance are significant for many stakeholders. A factor that enhances firm performance is a firm's adoption of an entrepreneurial orientation (EO). However, studies do not extensively examine the role of human resources, which are important for SMEs, in the EO/performance relationship. The current study extends the knowledge-based view (KBV) of the firm, which focuses on knowledge generation and application as a source of competitive advantage. Specifically, we examine the impact on SME performance of an EO's interactions with human resources outsourcing (HRO) and strategic human capital (HC). The results show that strategic HC moderates the relationship between EO and SME performance; further, the use of HRO is important for SMEs that have a competitive advantage based on HC. We also test the interactions of HC and EO, and provide theoretical and practical implications.

Suggested Citation

  • Irwin, Kristin C. & Landay, Karen M. & Aaron, Joshua R. & McDowell, William C. & Marino, Louis D. & Geho, Patrick R., 2018. "Entrepreneurial orientation (EO) and human resources outsourcing (HRO): A “HERO” combination for SME performance," Journal of Business Research, Elsevier, vol. 90(C), pages 134-140.
    • Handle: RePEc:eee:jbrese:v:90:y:2018:i:c:p:134-140
    DOI: 10.1016/j.jbusres.2018.05.016
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    References listed on IDEAS

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    2. Scaliza, Janaina Aparecida Alves & Jugend, Daniel & Chiappetta Jabbour, Charbel Jose & Latan, Hengky & Armellini, Fabiano & Twigg, David & Andrade, Darly Fernando, 2022. "Relationships among organizational culture, open innovation, innovative ecosystems, and performance of firms: Evidence from an emerging economy context," Journal of Business Research, Elsevier, vol. 140(C), pages 264-279.
    3. J. M. Núñez-Pomar & P. Escamilla-Fajardo & V. Prado-Gascó, 0. "Relationship between entrepreneurial orientation and social performance in Spanish sports clubs. The effect of the type of funding and the level of competition," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-19.
    4. Muhammad Jawad Iqbal & Hafiz Muhammad Usman Khizar, 2022. "The Epistemology of Entrepreneurial Responsible Orientation (ERO): Theory, Conceptualization, and Future Research," SAGE Open, , vol. 12(2), pages 21582440221, April.
    5. Tehreem Fatima, Ahmad Raza Bilal, 2019. "Action Characteristics as a Bridge in Individual Entrepreneurial Orientation and SME Success Pathway," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 6(2), pages 1-17, October.
    6. Sushil Kumar & Satyasiba Das, 2020. "Integrated framework of strategic orientation, value offerings and new venture performance," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(1), pages 3-17, March.
    7. Muhammad Sualeh Khattak & Rizwan Ullah, 2021. "The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1619-1637, September.
    8. J. M. Núñez-Pomar & P. Escamilla-Fajardo & V. Prado-Gascó, 2020. "Relationship between entrepreneurial orientation and social performance in Spanish sports clubs. The effect of the type of funding and the level of competition," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 981-999, September.
    9. Shiaw Tong Ha & May Chiun Lo & Mohamad Kadim Suaidi & Abang Azlan Mohamad & Zaidi Bin Razak, 2021. "Knowledge Management Process, Entrepreneurial Orientation, and Performance in SMEs: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    10. William C. McDowell & Lucy M. Matthews & Ryan L. Matthews & Joshua R. Aaron & Diane R. Edmondson & Cheryl B. Ward, 2019. "The price of success: balancing the effects of entrepreneurial commitment, work-family conflict and emotional exhaustion on job satisfaction," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1179-1192, December.
    11. Isabella Hatak & Manling Chang & Rainer Harms & Johan Wiklund, 2021. "ADHD symptoms, entrepreneurial passion, and entrepreneurial performance," Small Business Economics, Springer, vol. 57(4), pages 1693-1713, December.

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