Entrepreneurial orientation and firm performance in Italian firms

Abstract

PurposeConsidering that context is important and relying on a contingency perspective, the purpose of the study is to analyze the relationship between an entrepreneurial orientation (EO) and firm performance in one of the world's oldest economies: Italy. The contingency perspective relies on competitive strategy as a moderating variable.Design/methodology/approachUsing a mix of primary and secondary data sources, relationships are explored in a sample of 229 Italian for-profit firms. Moderated regression analysis is used for the sample and additional tests are conducted by firm size groupings.FindingsThe analysis suggests that an EO is positively associated with firm performance in the sample firms. Further, competitive strategy acts as a moderating influence: a low-cost strategy negatively influences the relationship, while a differentiation strategy positively influences the relationship. The firm size groupings do not appear to affect the results.Research limitations/implicationsThe study examines only for-profit firms in a single country, Italy; therefore, generalizability is limited. The results must be interpreted in light of these limitations.Originality/valueThis study contributes to the entrepreneurship literature by considering a relatively new international context in the EO–firm performance relationship. Further, a new contingency perspective is advanced by considering competitive strategy. In doing so, this study extends an understanding of the conditions under which an EO might be associated with firm performance.

Entrepreneurial orientation and firm performance in a sanctioned economy – does the CEO play a role?

“…The EO-performance link is still recognized as a high relevant topic, as many recent papers are still focusing on such link. Galbreath et al (2020) analyzed this relationship and firm performance in a specific context, the Italian one, which is considered as one of the oldest economies. The authors confirm the positive association between EO and performance, adding that competitive strategy operates as a moderator: a low-cost strategy negatively influences the relationship, while a differentiation strategy positively influences the relationship (Galbreath et al, 2020).…”

Interface between entrepreneurial orientation, strategic planning and budget: Configurations for high performance

“…Tradicionalmente, a OE vem sendo investigada e instrumentalizada no nível organizacional, pois o proprietário/gestor observa e repassa para suas firmas (Covin et al, 2020;Wales, Gupta, & Mousa, 2013) posturas que capazes de influenciar o processo de tomada de decisão e, consequentemente, o desempenho organizacional (Covin & Slevin, 1989;Galbreath, Lucianetti, Thomas, & Tisch, 2020;Lyon, Lumpkin, & Dess, 2000).…”

“…Dentre os estudos que analisam a relação entre a OE e o desempenho, há o consenso de que os impactos mudam de acordo com as variáveis, isto é, conforme o setor de atuação, o tipo de empresa, entre outros fatores (Covin & Wales, 2019). Nesse ínterim, amostras de diferentes países podem apresentar particularidades nos achados, tendo em vista que as investigações normalmente se concentram nos Estados Unidos e na Europa Ocidental (Galbreath et al, 2020;Rauch, Wiklund, Lumpkin, & Frese, 2009). Isso indica que, muitas das vezes, as conclusões não podem ser generalizadasfato que justifica a elaboração de pesquisas em novos contextos (Basco, Hernández-Perlines, & Rodríguez-Garcia, 2019;Martens, Lacerda, Belfort, & Freitas, 2016;Shu, De Clercq, Zhou, & Liu, 2019).…”

The influence of strategy formulation practices on the perceived financial performance of small and medium enterprises: The Zimbabwean experience

“…However, none of these studies dared to investigate the nature of strategy formulation amongst SMEs and the effect thereof on their financial performance in Zimbabwe. Galbreath et al (2020) observed that generalising results from other contexts could be misleading because countries have different cultures and idiosyncrasies and firms respond differently to different contexts. In this regard, Shu et al (2019) called for scholars to research different and new contexts.…”