Linking elements of entrepreneurial orientation and firm performance: examining the moderation of environmental dynamism

Abstract

This research is designed to examine the impact of elements of entrepreneurial orientation (EO) on firm performance by considering environmental dynamism as a potential moderator. Data was gathered from 143 textile and leather manufacturing small and medium-sized enterprises (SMEs) in Pakistan. Partial least square (PLS) was employed to analyse the hypotheses. The findings reveal that EO elements positively affect firm performance directly, except in the case of proactiveness. However, the nexus between the elements of EO and firm performance are also positively moderated by the environmental dynamics. Managers can exploit the EO elements according to the environmental situation of the industry. Further, scholars can comprehend better the EO-firm performance link by considering the environmental dynamism of the industry. Innovativeness, proactiveness and risk-taking as distinctive EO elements are hypothesised and their individual effects on firm performance analysed considering the environmental dynamism as a potential moderator.

Strategic Orientation and Sustainable Competitive Performance of Family Firms: Evidence of an Emerging Economy

“…More preciously, the theory suggested that competitive advantage can be sustained, especially through internal organizational capabilities (Anwar & Shah, 2021). Hence, the empirical study is consistent with past entrepreneurial literature, that EO (innovativeness, proactiveness, and risk-taking) can significantly enhance the firm performance as elicited through the resource-based view theory (Shafique & Saeed, 2020;Shen et al, 2020). The central principle of RBV is that idiosyncratic organizational resources are the key factors for sustained competitive advantage, while EO is a part of one of these unique resources.…”

“…Organizations undertake to conceptualize new products and services as per the customer demands and to fulfill the customer demands, businesses adopting innovation, taking a risk, and pioneer ability to gain opportunity and enhance performance (Majid et al, 2019). Organizations can adopt strategic orientation (entrepreneurial and market) due to external market uncertainty (Shafique & Saeed, 2020). To stabilize their position and sustain competitive performance, organizations need to innovate new things compared to competitors (Majid et al, 2020).…”

Examining the Key Elements of Green Supply Chain Management and its effects on the Organizational Performance: A Textile Industry Case Study

“…It is also found that there is a positive and important link between culture and how well new products are made, and that innovation and product performance vary between technology firms. In a similar way, the study by Shafique and Saeed (2020) shows that firms can use differences in innovative and environmentally friendly practises to gain a competitive edge. There are different ways that a company can use green practises that help the environment and people (Khan et al, 2022).…”

Entrepreneurial orientation and the efficiency of SMEs: The role of government financial incentives in an emerging industry

“…Similarly, other Similar moderators and mediators can be tested in future studies to unleash prominence implications. For instance, Shafique and Saeed (2020) tested the moderating role of environmental dynamism between EO and performance, thereby opening a door for future researchers to test environmental factors (government pressure, sustainability reporting and market uncertainty) that might give useful information for policy implications.…”