Entrepreneurial orientation and international entrepreneurial business venture startup

Abstract

PurposeThis study seeks to examine the interrelationships among three elements of an entrepreneurial orientation (proactiveness, innovativeness, and risk‐taking), age and education of the entrepreneur, and the international entrepreneurial business venture (IEBV) start‐up decision.Design/methodology/approachData were collected from a sample of 539 individuals from dynamic internationally focused South African firms. Since the dependent variable is non‐metric and the independent variables associated with the IEBV new entry decision are metric, multiple discriminant analysis was used to test new entry decisions.FindingsResults indicate that the start‐up decision is positively related to the proactiveness and risk‐taking components of an entrepreneurial orientation and the age of the lead entrepreneur and negatively related to the education of the lead entrepreneur. As predicted, the innovativeness component of entrepreneurial orientation is not a factor in the start‐up decision.Practical implicationsInvestors can determine the likelihood of venture start‐up by examining the proactiveness and risk‐taking dimensions of entrepreneurial orientation and the age and education of the lead entrepreneur. Since older and less educated entrepreneurs have a greater likelihood of starting ventures, entrepreneurial training programs may provide greater returns by targeting this age and education group.Originality/valueThis is the first examination of the role of entrepreneurial orientation, age, and the IEBV start‐up decision. It examines South Africa, a more dynamic, changing and hostile business environment. Managers and financiers can enhance their probability of success by developing the proactiveness and risk taking entrepreneurial orientation dimensions.

Strategic Orientations and SME Performance: Moderating Effect of Absorptive Capacity of the Firm

“…Studies by Liu, Luo, and Shi (2002) and Liu, Luo, and Shi (2003) found positive effect of entrepreneurial orientation, market orientation and learning orientation on corporate entrepreneurship, while Barrett, Balloun, andWeinstein (2005a, 2005b) found that entrepreneurial orientation, market orientation and learning orientation correlates with performance of non-profit organizations. Hult, Hurley, and Knight (2004) and Zehir and Eren (2007) further found that entrepreneurial orientation, market orientation and learning orientation are all positively related to performance of large-scale organizations while Ruokonen and Saarenketo (2009) and Kropp et al (2008) have tested the effects of the three orientations on new venture performance and internationalization. Meanwhile Rhee et al (2010)'s study found simultaneous effect of entrepreneurial orientation, market orientation, learning orientation on innovation performance, Li (2005) concurred that entrepreneurial orientation, market orientation and technology orientation have positive effect on networking and performance, and Salavou (2005) found that learning orientation, market orientation and technology orientation have a combined effect on new product performance.…”

“…Prior to this configuration of the concept, the collective role of entrepreneurial orientation, market orientation and learning orientation in performance models has been investigated in twelve studies among which two were conducted to investigate the corporate entrepreneurship in state-owned companies (Liu, Luo, & Shi, 2002, and another two studies were in small sample of non-for-profit organizations (Barrett, Balloun, & Weinstein, 2005a;2005b). Hult, Ketchen, and Slater (2005) and Zehir and Eren (2007) conducted their studies in the samples of large-scale firms, other two studies investigated the effect of the three orientations on new venture performance and internationalization of international companies (Roukenon & Saarenketo, 2009;Kropp et al, 2008), while Rhee, Park, and Lee (2010) investigated the innovation performance of technology intensive firms. Nonetheless, no study has yet investigated the effect of the three orientations on the firm level business performance of small and medium scale enterprise, though some studies had proposed the conceptual models that have not been empirically tested (Herath & Mahmood, 2012, 2013a, 2013b.…”

A content and comparative analysis of strategic management research in the Baltic area

“…It can predict success of a myriad of strategic Kropp et al, 2008). Therefore, qualitative research should be particularly devoted to exploring the boundaries of that construct when applied to predict functional or diversification strategies.…”

Building up the Entrepreneurial Intent Construct among Technical Students in Vietnam

“…In the definition of Linan& Chen, (2009), perceived risk is a personal viewpoint on unstable incidents. Kropp et al (2008) concluded that start-up decisions were influenced by two elements and one of them is one's thinking about risks (perceived risk) in new venture creation. Research has shown that a positive attitude toward risk or a willingness to bear uncertain results is associated with entrepreneurial intention.…”