Entrepreneurial Orientation and Innovation Performance: The Moderating Effects of the CEO’s Characteristics

Abstract

The existing literature on the relationship between Entrepreneurial Orientation (EO) and firm performance lacks comprehensive understanding. This article presents an integrated framework with two levels of analysis: Corporate and individual, drawing from Corporate Entrepreneurship (CE) and Corporate Governance (CG) literature. Our objective is to explore how Chief Executive Officer (CEO) characteristics influence the connection between EO and a company's Innovation Performance (IP), which contributes to long-term performance improvement. CEO characteristics are considered moderators of the EO-IP relationship. Our research methodology encompasses a thorough literature review, theoretical development, and proposal formulation. Through synthesizing existing knowledge, developing theoretical frameworks, and proposing research proposals, this study offers valuable insights into the governance and management of entrepreneurial companies. We propose research hypotheses that link interactions between EO and CEO characteristics to a company's IP. Our findings suggest that entrepreneurial companies should carefully consider the CEO's ownership, tenure, and industry expertise when appointing and overseeing them. This article underscores that CG for entrepreneurial companies should not be a mere set of recommendations tailored for large corporations.