Entrepreneurial orientation and firm performance: the mediating role of functional performances

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. (EO) and the overall performance of the firm. The purpose of this paper is to understand in more detail how EO influences firm performance. It adds to the literature by distinguishing performances of different functions in a firm and by exploring how the dimensions of EO influence these functional performances and, in turn, overall firm performance.Design/methodology/approach -This study examined the relationship between three dimensions of EO (innovativeness, proactiveness, risk-taking), three types of functional performances of firms (R&D performance, production performance, marketing and sales performance) and the overall performance of firms. The data are collected from 279 high-tech small-to-medium-sized enterprises (SMEs) using a postal survey. The proposed hypotheses are tested using structural equation modeling (SEM).Findings -The results indicate that the dimensions of (EO) are related in different ways to the performance of functions in a firm. A positive relationship is observed between innovativeness and R&D performance and between proactiveness and marketing and sales performance. A negative relationship exists between risktaking and production performance. The results also show a sequential positive relationship from R&D via production and marketing and sales to overall performance of firms. Therefore, it is concluded that the R&D, production and marketing and sales functions reinforce each other in a logic order and are complementary in their effect on overall firm performance.Practical implications -The results imply that the three functions, R&D, production and marketing and sales, in a firm play different roles, both in the firm's EO and in their contribution to overall performance. Managers can use the findings to monitor and influence the performance of different functions in a firm to increase overall firm performance.Originality/value -The first contribution of this study is that it unravels (i) which dimensions of EO have an effect on the performance of separate functions in a firm, indicating that functions contribute in different ways to entrepreneurial orientation of the firm. A second cont...

Efforts to Increase Marketing Performance of Small and Medium Enterprises in Central Java, Indonesia

“…That is way entrepreneurial orientation does not have a positive effect on marketing performance. However, this is inversely proportional to the research conducted by Rezaei and Ortt (2018). The study revealed that entrepreneurial orientation had a positive and significant effect on marketing performance.…”

“…stated that marketing performance could be obtained from the application of ERP (Enterprise Resource Planning) through competitive advantage. Apart from implementing ERP in the enterprise, marketing performance and competitive advantage could also be obtained from the existence of entrepreneurial orientation (Rezaei and Ortt, 2018). Another variable that can affect marketing performance and competitive advantage is the presence of an effective distribution channel (Kuswantoro, et al 2012).…”

Peran Orientasi Kewirausahaan Dalam Mendukung Teknologi Bersih

“…Orientasi kewirausahaan secara tidak langsung mempengaruhi kinerja perusahaan dalam menciptakan pengetahuan (Li, Huang, & Tsai, 2009). Keberhasilan sebuah perusahaan membutuhkan pengetahuan tentang kewirausahaan yang lebih untuk mencapai kinerja perusahaan yang unggul (Rezaei & Ortt, 2018). Dengan demikian, proses menciptakan pengetahuan memainkan peranan penting dalam mediasi dimana orientasi kewirausahaan bermanfaat bagi kinerja perusahaan.…”

“…Hal tersebut dikarenakan kekuatan manajerial merupakan komponen penting dalam menentukan keberhasilan orientasi kewirausahaan. Terdapat efek yang berbeda pada fungsi perusahaan yang dapat membentuk nilai internal untuk menentukan kinerja perusahaan (Rezaei & Ortt, 2018). Untuk mencapai kinerja yang unggul, perusahaan perlu menerapkan orientasi kewirausahaan melalui kapabilitas pemasaran (Sok, Snell, Lee, & Sok, 2017).…”

Orientasi kewirausahaan dalam turbulensi lingkungan bisnis

“…Perusahaan secara keseluruhan berhubungan positif dengan kinerja perusahaan terlepas dari jenis ukuran kinerja dan konteks industry (Lee & Roh, 2012) Orientasi kewirausahaan (EO) merupakan faktor penting untuk kelangsungan hidup, profitabilitas, dan pertumbuhan perusahaan (Dess, Pinkham, & Yang, 2011). Telah ditemukan dalam banyak studi berbeda bahwa EO memiliki efek positif pada kinerja perusahaan (Rezaei & Ortt, 2018). EO mengacu pada proses pembuatan strategi yang memandu perusahaan untuk mengembangkan inovasi konstan, mengadopsi postur proaktif di pasar dan melakukan investasi berisiko (Shirokova, Bogatyreva, Beliaeva, & Puffer, 2016) Di lain pihak, perusahaan dengan orientasi kewirausahaan yang tinggi bisa saja mengalami kinerja yang buruk.…”