Entrepreneurial behavior and firm performance: The mediating role of business model novelty

Abstract

Bricolage and effectuation have emerged as new theoretical perspectives describing entrepreneurial behavior (EB). Bricolage emphasizes the creative use of available resources, while effectuation uses available means as a starting point and encourages firms to engage in affordable loss, pre‐commitment, flexibility, and experimentation as independent dimensions for entrepreneurial actions. This study examines the influence of each dimension of EB, namely bricolage, affordable loss, pre‐commitment, flexibility, and experimentation on business model novelty (BMN). It further assesses the EB – firm performance relationship and examines the mediating effect of BMN on the relationship between each dimension of EB and firm performance. We surveyed 238 small and medium enterprises in India. Our results indicate that bricolage, pre‐commitment, flexibility, and experimentation positively influence BMN. However, affordable loss behavior had a negative impact on BMN. Moreover, our findings indicate that BMN mediates the EB‐firm performance relationship. Our study enriches the extant literature by demonstrating the impact of each dimension of EB on BMN – an aspect not covered by the extant literature. Furthermore, our study adds to the literature by highlighting BMN as an important mediator explaining EB’s impact on firm performance.

Achieving competitive advantage through bricolage: A small business perspective

“…Accordingly, the study fulfills an important lacuna in the literature calling for studies investigating how entrepreneurial bricolage enables the competitiveness of firms (Steffens et al, 2023). As noted by some scholars (Steffens et al, 2023; Pati et al, 2021; Tajeddini et al, 2023), entrepreneurial bricolage does not directly impact completive advantage, but mediation effect is required.…”

Locally initiated and designed innovation and potential reverse transfer through selective bricolage at threeMNCsubsidiaries in China

“…Second, while extant studies of bricolage focus on small‐sized firms (Baker and Nelson, 2005; Guo et al, 2018; Pati et al, 2021), research on the implementation of bricolage‐based innovation in large MNCs is still under‐developed. Our study adds to this nascent stream of literature (Williams and Nones, 2009; Halme et al, 2012; Wang et al, 2017; Yang, 2018) by tracking how foreign subsidiaries under resource constraints can manage to resolve both inter‐ and intra‐organizational challenges for embracing the bricolage mode of innovation.…”

Disentangling the relationship between business model, absorptive capacity, differentiation strategy and performance. Evidence from a transition economy

“…This framework has attracted much interest in business and management research because of its role as a booster of firm performance (Chen et al, 2022). As a result, many scholars have called for further research to identify potential antecedents for NBM design capabilities of companies (Amit and Zott, 2015;Guo et al, 2016;Foss and Saebi, 2017;Pati et al, 2018Pati et al, , 2021Snihur and Zott, 2020).…”