Founder effectiveness in leveraging entrepreneurial orientation

Abstract

Purpose -This paper aims to explore the effects of entrepreneurial orientation (EO) on firm survival and examine whether founder chief executive officers (CEOs) are more effective than other types of managers at utilizing entrepreneurial orientation at initial public offerings (IPOs). Design/methodology/approach -Using survival analysis the authors investigate the effects of EO on firm survival as well as the moderating role of founder CEOs. Findings -The results suggest that EO increases post-IPO survival. Further, founder-CEOs moderate the EO-survival relationship. Originality/value -The paper shows that entrepreneurial orientation enhances long-term survival in IPO firms. Survival is an important, though generally overlooked consideration in EO research. The paper also concludes that firms with founder CEOs are more likely to value and implement EO. Finally, the paper addresses calls for greater use of secondary measures of EO.

A configurational analysis of the antecedents of entrepreneurial orientation

“…As a matter of fact, studies have singled out the differences between founder-led and non-founder led firms in term of governance, decision-making process, top management team, and strategy (Mousa & Wales, 2012;Nelson, 2003), and showed that the impact of the founder is prominent, particularly in smaller firms (Jayaraman, Khorana, Nelling, & Covin, 2000). Being less constrained by existing organizational routines, founders exhibit original problem solving styles, have more freedom to proactively experiment their business ideas and shape company's EO according to their personality, priorities and values (Begley, 1995;Randøy & Goel, 2003).…”

Mediating effect of marketing capability and reward philosophy in the relationship between entrepreneurial orientation and firm performance

“…The firms make commitment to risk-taking initiative with appropriate reward systems to support their employees seem particularly helpful. Firms with limited resource iterate to discover the essential business opportunity to ensuring their continued survival (Mousa & Wales, 2012). The venture success becomes the most important attribute to determine financial reward in which job risk and pay risk embedded.…”

Drivers to firm innovation and their effects on performance: an international comparison

“…Firm characteristics, such as age, sector of activity or scale in terms of number of employees have been broadly defended as crucial to innovation based processes (Mills & Marguiles, 1980;Acs & Audretsch, 1988;Gallouj & Weinstein, 1997;Tether, 2003;Drejer, 2004;Dinur, 2011;Criscuolo et al, 2012;Anderson et al, 2012;Audretsch, 2012;Mousa, & Wales, 2012).…”