Entrepreneurial Orientation: Assessing the Construct's Validity and Addressing Some of Its Implications for Research in the Areas of Family Business and Organizational Learning

Abstract

Our commentary addresses three papers that we believe make important contributions to the emerging literature on entrepreneurial orientation (EO). The first paper rigorously assesses and enhances the construct validity of EO-an important antecedent to empirical research. The second paper draws on the concepts of identity and social identity and provides a means of predicting how various ownership types of family firms will affect the EO-performance relationship. The third paper synthesizes multiple theoretical perspectives and empirical research to provide insights on the role that EO plays in enhancing a firm's acquisitive and experimental learning. We close with a discussion of EO as an area for theory development. We would like to thank the editors of this ETP Special Issue-Jeff Covin and TomLumpkin-for inviting us to comment on these three fine papers on the emerging topic of Entrepreneurial Orientation (EO). Clearly, EO has generated a substantial literature (see Rauch, Wiklund, Lumpkin, & Frese [2009] for a recent meta-analysis) which has important implications for both normative and descriptive theory. In addition, empirical research and theory building in EO have encompassed a wide variety of substantive disciplines such as entrepreneurship, strategic management, organizational behavior, marketing, and operations. This stream includes a wide range of empirical research across many contexts such as small and publicly held family businesses, small firms, large corporations, as well as firms in both Western and non-Western contexts.

Sustainable Entrepreneurial Orientation: A Business Strategic Approach for Sustainable Development

“…EO is thus measured according to numerous authors who estimate that their empirical measurement, even following the aggregate/composite/unidimensional current proposed by Miller [12] and Covin and Slevin [13], should be multidimensional and reflective in order to capture the essence of what the conceptual construct means [127,131], although other authors such as Dess et al [132] believe that EO can be investigated as both a formative and a reflective construct. SO is considered a latent unidimensional reflective construct.…”

Time to recalibrate? Exploring entrepreneurial orientation of family businesses before, during, and after an environmental jolt

“…The first variable, strategic orientation, clearly aligns with the EO construct and represents the outcome variable of interest in this study. As previously discussed, EO characterises a firm-level strategic orientation that is important to both family and non-family businesses (Dess, Pinkham and Yang, 2011).…”

“…Research also suggests family businesses have comparative human, social, and knowledge advantages over non-family businesses that enhance their ability to identify and exploit entrepreneurial opportunities that require longer term orientations to strategic decisions (Patel and Fiet, 2011;Sirmon and Hitt, 2003). Further, extant research suggests EO is positively associated with firm performance in stable environments (Lumpkin and Dess, 1996;Dess, Pinkham and Yang, 2011), which is expected to produce a positive feedback loop (e.g. a virtuous cycle) and increased investment in EO over time (Masuch, 1985;Sastry, 1997;Weick, 1979).…”

Entrepreneurs as intermediaries

“…Fueled by an entrepreneurial orientation (Dess, Pinkham, & Yang, 2011;Lumpkin & Dess, 1996;, entrepreneurs are often interested in seeking first-mover advantages, and the best ones often possess rare capabilities in coordinating resources that enable them to capitalize on these opportunities (Klein, 2008). These capabilities are often uncodifiable, intangible, and difficult to teach and imitate (Fiet, 2007).…”