"Entrepreneurial Management" as a Strategic Choice in Firm Behavior: Linking it with Performance

Abstract

Establishing the core principals of “entrepreneurial management” within an organization describes a certain strategic choice that affects a company in six dimensions, according to Stevenson (1983). Our aim is to empirically measure entrepreneurial management (it’s existence and degree) and to link this measured strategic choice (for or against) entrepreneurial management with firm performance. Our argument here is that companies that follow core principals of entrepreneurial management should outperform other more administrative firms in certain measures of strategic performance. This paper builds on an empirical investigation published by Brown, Davidson & Wiklund (2001), who have developed and tested a reliable measurement instrument for Stevenson’s definition of “entrepreneurial management” (Stevenson 1983, Stevenson & Jarillo 1990). In the first part of our paper we aim to replicate and to some extent improve this study. In the second part we link the measured degree of “entrepreneurial management” with firm performance. To our knowledge, even so Stevenson’s definition of entrepreneurial management is commonly acknowledged and Brown et al. (2001) developed a reliable instrument to empirically capture this behavioral approach to management, the construct of entrepreneurial management never before has been linked to firm performance in an empirical study. Since most papers on corporate entrepreneurship and firm performance are based on Covin & Slevin’s (1991) or Miller’s (1983) concept of entrepreneurial orientation, we contribute to the literature on corporate entrepreneurship in a novel way, given the fact that the entrepreneurial management dimensions measured in our study can theoretically and empirically be clearly distinguished from the construct of entrepreneurial orientation as defined by Covin & Selvin (1991).

Entrepreneurial Management as a Predictor of Business Performance in the Greater Accra Region, Ghana

“…They consider growth as an essential element for short and long-term survival. This influences the businesses to pursue and exploit any available opportunity (Abker et al, 2018;Kuhn et al, 2010;Rashid & Mahmood, 2016). Research has indicated the relationship between entrepreneurial growth orientation and business performance (Kuhn et al, 2010;Rashid & Mahmood, 2016).…”

“…This influences the businesses to pursue and exploit any available opportunity (Abker et al, 2018;Kuhn et al, 2010;Rashid & Mahmood, 2016). Research has indicated the relationship between entrepreneurial growth orientation and business performance (Kuhn et al, 2010;Rashid & Mahmood, 2016). For example, a study from Sweden indicated that growth orientation is associated with a higher level of business performance (Bradley et al, 2011).…”

“…An entrepreneurial management structure is organic with multiple informal networks. It facilitates the quick flow of information and decentralises decision-making (Bradley et al, 2011;Kuhn et al, 2010;Rashid & Mahmood, 2016). The relationship between entrepreneurial management structure and business performance has been thoroughly researched (Hameed & Ali, 2011;Rashid & Mahmood, 2016).…”

“…The contribution of employees in pursuing opportunities to create value for the firm is the key to the entrepreneurial reward philosophy (Bradley et al, 2011;Kuhn et al, 2010;Stevenson, 2006). Entrepreneurial firms encourage their employees to explore, pursue, and experiment with opportunities that will create value.…”

“…Entrepreneurial firms encourage their employees to explore, pursue, and experiment with opportunities that will create value. Employees are rewarded based on their contribution to the value creation in the firm (Kuhn et al, 2010;Rashid & Mahmood, 2016;Stevenson, 2006). Studies have reported findings from different countries such as Turkey, Sweden, and Pakistan to support the impact of entrepreneurial reward philosophy on business performance (Bradley et al, 2011;Dyduch, 2008;Gürbüz & Aykol, 2009).…”