PurposeAdopting insights from the upper echelons theory, this study aims to investigate the relationship between entrepreneurial orientation (EO) and firm performance under the contingent influence of chief executive officer (CEO) power.Design/methodology/approachData were collected from a sample of large publicly-traded Indian software firms using the Prowess Database of Center for Monitoring Indian Economy (CMIE). Panel data regression analysis was used to test the study's hypotheses.FindingsThe results indicate that EO has an inverted U-shaped relation with firm performance. Strong support is also found for a negative moderating influence of CEO power on the inverted U-shaped relationship between EO and firm financial performance, suggesting that powerful CEOs eventually harm entrepreneurial firms.Practical implicationsThe study encourages firms to have entrepreneurship orientation, but at a moderate level, to get the maximum benefit of EO. The study also explains to managers to what extent CEO power drives EO.Originality/valueThe study contributes to the intersection of corporate entrepreneurship and upper echelons theory. The study shows that CEO power negatively affects the EO and firm's performance relationship. This study holds important insights for managers of entrepreneurial firms, especially in international contexts and emerging markets.
IJBG proposes and fosters discussion on various aspects of business and globalisation, including the physical environment and poverty. Objectives: The objectives of IJBG are to establish an effective channel of communication between policy makers, government agencies, academic and research institutions and persons concerned with the complex role of business and globalisation. The international dimension is emphasised in order to overcome cultural and national barriers and to meet the needs of accelerating technological and ecological change and changes in the global economy. Readership: IJBG provides a vehicle to help academics, researchers, policy makers, managers and entrepreneurs, working in business, to disseminate information and to learn from each other's work. Contents: IJBG publishes original empirical research, conceptual papers, and book reviews.
Re-internationalization is defined as firms' re-entry into international operations after they have abandoned all their previous internationalization efforts. In this paper, we report findings from a survey administered among senior-level managers of re-internationalized Indian firms where we studied the differences in firms' choices in modes of operations during re-internationalization phase as compared to initial internationalization phase. The results from the survey indicated that firms tended to go for high involvement modes of operations during re-internationalization as compared to the relatively low involvement modes of operations undertaken during initial internationalization. This trend of going for higher involvement modes of operations was more visible in firms that had a presence in a relatively higher number of countries during the re-internationalization stage. This incremental nature of internationalization, i.e. going from initial low involvement modes of operations toward high involvement modes of operations as firms gained experience in both time and space from their initial through re-internationalization attempts, found support for the Uppsala model of internationalization. Being among the first studies on the topic, we expect this study to serve as a foundation for researchers to explore deeper related queries. This study also has meaningful practical and policy implications.
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