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Entrepreneurial Orientation versus Small Business Orientation: What Are Their Relationships to Firm Performance?

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  • Rodney Runyan
  • Cornelia Droge
  • Jane Swinney

Abstract

This study examines the constructs of entrepreneurial orientation (EO) versus small business orientation (SBO), their impact on small business performance, and whether these effects are moderated by longevity. A sample of 267 small business owners from 11 small–medium downtowns was used in structural equation modeling (SEM) testing of the measurement, structural and moderation hypotheses. The measurement confirmatory factor analyses models of the two constructs revealed that EO and SBO are unique constructs. Then a structural model predicting performance was tested. Finally, a two‐group model split on “below 11 years” versus “11+ years” demonstrated that the structural paths connecting EO and SBO to performance are not the same in these groups: for the younger group, only EO significantly predicts performance while for the older group, only SBO significantly predicts performance.

Suggested Citation

  • Rodney Runyan & Cornelia Droge & Jane Swinney, 2008. "Entrepreneurial Orientation versus Small Business Orientation: What Are Their Relationships to Firm Performance?," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(4), pages 567-588, October.
    • Handle: RePEc:taf:ujbmxx:v:46:y:2008:i:4:p:567-588
    DOI: 10.1111/j.1540-627X.2008.00257.x
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    Cited by:

    1. Huatao Peng & Yuming Chang & Yang Liu, 2023. "Risk preference, prior experience, and serial entrepreneurship performance: evidence from China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 29(3), pages 613-631, May.
    2. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2021. "Innovation Orientation in Business Services," Books, Edward Elgar Publishing, number 19897.
    3. Justin R. Hall & Selen Savas-Hall & Eric H. Shaw, 2023. "A deductive approach to a systematic review of entrepreneurship literature," Management Review Quarterly, Springer, vol. 73(3), pages 987-1016, September.
    4. Eijaz Ahmed Khan & Lynne Harris & Mohammed Quaddus, 2021. "The mediating role of personality traits on the entrepreneurial orientation–firm performance relationship: informal entrepreneurship context," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 41-52, December.
    5. Danilo Bertoni & Daniele Cavicchioli & Laure Latruffe, 2023. "Impact of business transfer on economic performance: the case of Italian family farms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 48(2), pages 186-213.
    6. Franczak, Jennifer & Gyensare, Michael A. & Lanivich, Stephen E. & Adomako, Samuel & Chu, Irene, 2024. "How and when does founder polychronicity affect new venture performance? The roles of entrepreneurial orientation and firm age," Journal of Business Research, Elsevier, vol. 172(C).
    7. Muhammad Anwar & Thomas Clauss & Wunnam Basit Issah, 2022. "Entrepreneurial orientation and new venture performance in emerging markets: the mediating role of opportunity recognition," Review of Managerial Science, Springer, vol. 16(3), pages 769-796, April.
    8. Mansour Alyahya & Meqbel Aliedan & Gomaa Agag & Ziad H. Abdelmoety, 2023. "Understanding the Relationship between Big Data Analytics Capabilities and Sustainable Performance: The Role of Strategic Agility and Firm Creativity," Sustainability, MDPI, vol. 15(9), pages 1-17, May.

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