Entrepreneurial orientation as a driver of brokerage in external networks: Exploring the effects of risk taking, proactivity, and innovativeness

Abstract

Research Summary: In this article, we examine to what extent a firm's propensity to acquire brokerage positions in its external knowledge networks is driven by its entrepreneurial orientation. Specifically, we compare the influence of a firm's overall entrepreneurial orientation (EO) to the effects that the individual EO dimensions (i.e., risk taking, proactivity, and innovativeness) have on brokerage. Using a case study design, survey data was gathered from a company cluster in the German photonics industry. Applying a class of exponential random graph models, our results suggest that a firm's overall level of EO does not affect its propensity to obtain a brokerage position. In contrast, brokerage is positively influenced by a firm's willingness to take business‐related risks, whereas a pronounced orientation toward innovation seems to reduce brokerage. Managerial Summary: While it has often been claimed that a pronounced orientation toward entrepreneurship helps firms succeed, the results of our study suggest that the individual dimensions of entrepreneurial orientation in fact differently influence the ability of firms to obtain brokerage positions in their external collaboration networks with partners. Specifically, obtaining brokerage positions seems to depend on the willingness of firms to take business‐related risks. In contrast to our theoretical considerations, we were unable to find empirical support for our assumption that proactivity would be a similarly important antecedent to network brokerage. Finally, firms should be careful with respect to an extensive orientation toward innovativeness, as they run the risk of neglecting the importance of an advantageous strategic position in their external networks.

Entrepreneurial Orientation and International Fundraising by Civil Society Organizations

“…The research results reinforce and broaden those of Rank and Strenge (2018), for example. These authors suggest EO is important for the performance of organizations in various fields, but they do not include nonprofit organizations among them.…”

“…The adoption of strong EO is considered increasingly important for firms seeking new opportunities (Rank & Strenge, 2018). The importance of EO to the internationalization of companies has been demonstrated in the field of Born Globals (Weerawardena, Mort, Liesch, & Knight, 2007;Knight & Liesch, 2016).…”

“…EO has to do with a company's strategy creation processes, managerial philosophies, and behavior, at the company level, that could be described as innovative, proactive, and risky (Covin & Slevin, 1989;Miller, 1983). The use of EO as a reference framework for this study is justified because strong EO is increasingly considered important to companies that seek new opportunities (Wales, Gupta, & Mousa, 2011;Rank & Strenge, 2018).…”

Entrepreneurial orientation: The necessity of a multilevel conceptualization

“…Entrepreneurial orientation (EO) emerged from the recognition that organizations can be conceived as entrepreneurial actors (Covin, 1991; Covin & Slevin, 1989; Miller, 1983; Mintzberg, 1973). Building on this insight, EO has become one of the most established and researched topics in the management literature (Anderson et al, 2015; Chirico, Sirmon, Sciascia, & Mazzola, 2011; Eshima & Anderson, 2017; Lumpkin & Dess, 1996; McKenny, Short, et al, 2018; Palmié, Huerzeler, Grichnik, Keupp, & Gassmann, 2019; Rank & Strenge, 2018; Rauch et al, 2009; Rosenbusch, Rauch, & Bausch, 2013; Simsek, Heavey, & Veiga, 2010; Stam & Elfring, 2008; Wales, 2016; Wang, Thornhill, & De Castro, 2017). Nonetheless, scholars still express uneasiness over EO (Covin & Lumpkin, 2011).…”

The Evolution Process of Entrepreneurship Studies in the 21st Century: Research Insights From Top Business and Economics Journals

“…After Lyon et al ., in our database, we also find that people studied what factors influence EO (Dai et al ., 2016) and EO is either as a mediator (Coombes et al ., 2011) or a moderator (Wales et al ., 2013) that connect firm behaviors and firm performance. Rank and Strenge (2018) noted that EO could be a driver that helps new ventures to build external links, while Hernández‐Linares and López‐Fernández's (2018) recent paper summarized EO with family businesses.…”