Entrepreneurial orientation, passion for work, perceived environmental dynamism and firm performance in an emerging economy

Abstract

Purpose – Previous scholarly studies have concluded that entrepreneurial orientation (EO) positively relates to firm performance and that relationship is dependent on several contingencies. The purpose of this paper is to show how managers’ passion for work and the external environment (i.e. environmental dynamism) within which firms operate interactively impact on EO-firm performance relationship. Design/methodology/approach – This theoretically derived research model is empirically validated using survey data from 250 small- and medium-sized enterprises (SMEs) operating in Ghana. Findings – The study’s empirical findings indicate that passion for work strengthens the EO-performance relationship in dynamic market environments. Research limitations/implications – The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications – The study’s findings provide managers with a deeper understanding of how to achieve superior product firm performance, especially when firms are entrepreneurially oriented. The understanding of this issue can promote the development and maintenance of further entrepreneurial ventures in developing economies. Originality/value – The paper has a strong theoretical value because to the best of authors’ knowledge, this study is the first to examine the moderating role of passion for work on the relationship between EO and firm performance in dynamic environments.

Effects of Entrepreneurial Orientation and Passion for Work on Performance Variables in Sports Clubs

“…In this context, entrepreneurial orientation has been widely accepted as a construct that defines and measures attitudes related to entrepreneurship and innovation [4,5]. It has added importance, since, according to previous literature, it has a close relationship with the final performance of an organisation [8,14,17]. Hence, it was chosen as an independent variable for use in the present study.…”

“…In this sense, passion in entrepreneurship reflects the degree to which a person loves to work and enjoys investing time in activities related to that work [31,32]. This passion for work is also related to entrepreneurial orientation, since there are studies highlighting how entrepreneurial orientation interacts with passion to increase the performance of entities, understanding that passion is a key element in turning entrepreneurial orientation into performance improvement [8]. Given the uncertainty and challenges that arise when developing a new organisation or launching pioneering initiatives, passion can be a key factor associated with entrepreneurial actions [7].…”

“…Entrepreneurial behaviours, such as the addition of new products or services, anticipating competition in practical proposals, or committing the organisation's resources to achieving a higher bottom line, can positively impact performance and, consequently, the organisation's sustainability. Similarly, passion for work can be an essential element in driving entrepreneurial orientation [7], and consequently, organisational performance [8].…”

Understanding entrepreneurship at the base of the pyramid in developing countries : insights from small-scale vegetable farmers in Benin

“…Consequently, a number of studies have typically focused on the causal relationships between EO and firm performance (Lechner and Gudmundsson, 2014;Lindsay et al, 2014;Liu et al, 2011;Lumpkin and Dess, 2001;Messersmith and Wales, 2013;Moreno and Casillas, 2008;Rauch et al, 2009;Rodríguez-Gutiérrez et al, 2015;Verhees et al, 2011;Wiklund and Shepherd, 2005). In addition, some studies have included internal factors of business (Engelen et al, 2014;Wiklund and Shepherd, 2005) and its environmental dimensions (Shirokova et al, 2016;Wiklund and Shepherd, 2005;Adomako et al, 2016c) to explore the strengh of EO-performannce relationship. Moreover, the EO framework has also been readily applied to small firms in the formal sector in developing countries (e.g., Ginting, 2014;Gunawan et al, 2016;Lim and Envick, 2013;Ndubisi and Agarwal, 2014;Uddin et al, 2014), including Sub-Saharan…”

Entrepreneurial orientation dan pengalaman kerja

“…Hubungan antara EO dan kinerja perusahaan yang dianggap untuk menjadi lebih kuat dalam manajer tingkat tinggi untuk semangat dalam bekerja, dan dapat dijadikan perantara dalam pengaruh dari hubungan EO terhadap kinerja perusahaan lebih kuat ketika lingkungan berada dalam keadaan yang berubah (Pratono & Mahmood, 2015). Keuntungan dari perusahaan EO terlepas dari kondisi dimana mereka mengoperasikan benefit yang didapat dengan pemahaman tentang EO dan hubungannya dengan kinerja perusahaan (Adomako, Quartey, & Narteh, 2016). Kekuatan hubungan antara EO dan kinerja perusahaan mungkin bisa tergantung dari karakteristik lingkungan luar bisnis, termasuk lingkungan petentangan dan pertumbuhan pasar terhadap hasil produk dan jasa suatu perusahaan (Pratono et al, 2018).…”