Entrepreneurial orientation and small business performance: A configurational approach

Johan Wiklund; Dean Shepherd

doi:10.1016/j.jbusvent.2004.01.001

Entrepreneurial orientation and small business performance: A configurational approach

Johan Wiklund, Dean Shepherd

Research output: Contribution to journal › Article › peer-review

1992 Scopus citations

Abstract

The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.

Original language	English (US)
Pages (from-to)	71-91
Number of pages	21
Journal	Journal of Business Venturing
Volume	20
Issue number	1
DOIs	https://doi.org/10.1016/j.jbusvent.2004.01.001
State	Published - Jan 2005
Externally published	Yes

Keywords

Decision making
Opportunities
Risk
Risk perception
Risk propensity

ASJC Scopus subject areas

Business and International Management
Management of Technology and Innovation

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10.1016/j.jbusvent.2004.01.001

Cite this

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title = "Entrepreneurial orientation and small business performance: A configurational approach",

abstract = "The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.",

keywords = "Decision making, Opportunities, Risk, Risk perception, Risk propensity",

author = "Johan Wiklund and Dean Shepherd",

note = "Funding Information: The contingency model does not significantly increase the amount of explained variance (P>.10), and none of the two-way interactions are statistically significant (P>.10). Thus, neither Hypothesis 2 nor Hypothesis 3 is supported by the data. However, the inclusion of the three-way interaction term, displayed in column 5, significantly increase explained variance (ΔR 2 =.04, P<.01). This suggests a configuration of EO, environmental dynamism, and access to financial capital, supporting Hypothesis 4a . ",

year = "2005",

month = jan,

doi = "10.1016/j.jbusvent.2004.01.001",

language = "English (US)",

volume = "20",

pages = "71--91",

journal = "Journal of Business Venturing",

issn = "0883-9026",

publisher = "Elsevier",

number = "1",

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T1 - Entrepreneurial orientation and small business performance

T2 - A configurational approach

AU - Wiklund, Johan

AU - Shepherd, Dean

N1 - Funding Information: The contingency model does not significantly increase the amount of explained variance (P>.10), and none of the two-way interactions are statistically significant (P>.10). Thus, neither Hypothesis 2 nor Hypothesis 3 is supported by the data. However, the inclusion of the three-way interaction term, displayed in column 5, significantly increase explained variance (ΔR 2 =.04, P<.01). This suggests a configuration of EO, environmental dynamism, and access to financial capital, supporting Hypothesis 4a .

PY - 2005/1

Y1 - 2005/1

N2 - The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.

AB - The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.

KW - Decision making

KW - Opportunities

KW - Risk

KW - Risk perception

KW - Risk propensity

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Entrepreneurial orientation and small business performance: A configurational approach

Abstract

Keywords

ASJC Scopus subject areas

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