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Entrepreneurial Orientation and Firm Performance in New Ventures and Established Firms

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  • Zhongfeng Su
  • En Xie
  • Yuan Li

Abstract

Lots of studies suggest a positive relationship between entrepreneurial orientation (EO) and firm performance; however, the empirical findings are inconclusive. There are two explanations for the contradictory results: the performance implication of EO is context‐specific and the relationship between EO and performance may be curvilinear. Consulted on the perspective of the liability of newness and taken together these explanations, this paper probes into the difference in the EO‐performance linkage between new ventures and established firms. We find that the relationship between EO and performance is inverse U‐shaped in new ventures but positive in established firms. Finally, we discuss our contributions, implications, and possible future extensions.

Suggested Citation

  • Zhongfeng Su & En Xie & Yuan Li, 2011. "Entrepreneurial Orientation and Firm Performance in New Ventures and Established Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 49(4), pages 558-577, October.
    • Handle: RePEc:taf:ujbmxx:v:49:y:2011:i:4:p:558-577
    DOI: 10.1111/j.1540-627X.2011.00336.x
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    Cited by:

    1. Ehsan Fansuree Surin & Oswald Timothy Edward & Sayuthi Shaaran & Rohana Ngah, 2023. "Understanding Entrepreneurial Orientation based Research: A Proposed New Theoretical Framework," Information Management and Business Review, AMH International, vol. 15(3), pages 23-35.
    2. Aric Xu Wang & Kevin Zheng Zhou, 2022. "Financial munificence, R&D intensity, and new venture survival: critical roles of CEO attributes," Small Business Economics, Springer, vol. 59(4), pages 1641-1659, December.
    3. Yangyang Yu & Yong Qin & Zeshui Xu & Marinko Škare, 2022. "Bibliometric analysis of strategic entrepreneurship literature," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1475-1502, December.
    4. 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).
    5. Martin Hemmert & Adam R. Cross & Ying Cheng & Jae-Jin Kim & Masahiro Kotosaka & Franz Waldenberger & Leven J. Zheng, 2023. "Environmental uncertainty and the entrepreneurial orientation–performance relationship among East Asian new technology-based firms: an institutional perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1683-1711, September.
    6. 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.
    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.

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