Examining Entrepreneurial Orientation – Performance Relationship Among Croatian Service Smes

Abstract

The relationship between entrepreneurial orientation and business performance has been widely researched. However, in scientific literature there is still a need for further clarification when observing the before mentioned concepts, especially within the service SME context. Likewise, when observing this relationship it is necessary to look into the impact of entrepreneurial orientation on individual segments of business performance, i.e. on financial and non-financial constructs. Therefore, the aim of this paper is to explore the association of entrepreneurial orientation and small and medium business performance, while observing performance both as unidimensional and multidimensional concept. Furthermore, the paper tests whether moderation effect of external environment exists between entrepreneurial orientation and business performance among Croatian service SMEs.

Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries

“…Empirical research confirms the above and suggests that EO's impact on business performance is stronger in a highly dynamic, uncertain, and hostile environment (Morić Milovanović et al 2021a;Bauweraerts 2018;Chirico and Bau' 2014;Wiklund and Shepherd 2005). Furthermore, Zahra (1993) found a negative relationship linking entrepreneurship and performance in the context of firms operating in solid and more predictable environments.…”

Measuring the Effect of Entry Into the Eurozone on Economic Growth – Data Storytelling Using Clustering and Anfis

“…Endogenous integration theory can be seen as a sub-theory of neoclassical growth theory, which claims that the source of technological progress is the expansion of the market due to the scale effect. By expanding the market, investments in research and development are encouraged, the market becomes more competitive and efficient through better mobility of production factors (Morić Milovanović et al, 2021). The effect of growth based only on integration is the subject of numerous studies.…”

Does the Relationship between Entrepreneurial Orientation and Subjective Financial Firm Performance Have an Inverted U-Shape? Evidence from Southeast European SMEs

“…Veselinović et al (2021) also found that the EO-performance relationship is partially mediated by total quality management. Morić-Milovanović et al (2021), on a sample of 136 Croatian SMEs, using multiple linear regression analysis, showed the positive impact of EO on performance of service SMEs, expressed both as financial and nonfinancial performance indicators. Findings also imply environmental factors have no moderation effect on the EO-performance relationship (Morić-Milovanović et al 2021).…”

“…Sci. 2023, 13, 26 2 of 16 (Luu and Ngo 2019;Su et al 2011) and under the influence of various external factors such as environmental hostility (Morić-Milovanović et al 2021;Zahra and Garvis 2000), industry dynamism (Morić-Milovanović et al 2021;Rauch et al 2009) and investment intensity (Kohtamäki et al 2019). Tang et al's (2008) findings indicate that the EO-performance relationship might be moderated by institutional framework.…”

“…Tang et al's (2008) findings indicate that the EO-performance relationship might be moderated by institutional framework. Thus, many researchers (Morić-Milovanović 2022;Morić-Milovanović et al 2021;Šlogar 2021;Veselinović et al 2021;Petrović et al 2015;Morić-Milovanović 2012) from southeast European (SEE) countries have responded to Tang et al's (2008) call for further research on the EO-firm performance relationship, specifically in the context of transitional economies. Transitional economies are interesting for investigating the effects of EO on firm performance since they are characterized by volatility of the business and institutional environments, and the importance social capital has on political ties and government control of resources (Luu and Ngo 2019).…”