Radical and incremental entrepreneurial orientation: The effect of knowledge acquisition

Abstract

A firm's collaborative context can represent an important source of knowledge for sustaining its entrepreneurial outcomes. Drawing on entrepreneurship and resource-based view literature, we study how the acquisition of knowledge from inter-firm ties affects the relationship between entrepreneurial orientation and performance, distinguishing between two types of knowledge, market and technological, and between two types of entrepreneurial orientation, radical and incremental. The results of the study on a sample of 203 Spanish small businesses from the Information and Communication Technology (ICT) sector suggest that knowledge acquisition plays different roles, depending on the type of entrepreneurial orientation developed and also on the type of knowledge exchanged. In particular, market and technological knowledge acquisition positively moderate only the relationship between radical entrepreneurial orientation and performance, while in the case of incremental entrepreneurial orientation we find only a direct positive influence of market knowledge acquisition on performance.

Social Capital and Firm Performance: Moderating Effect of Environmental Turbulence

“…Firms with initiative to enhance its EO may achieve their FP in the short term, while long term competitive advantage becomes apparent in firms with radical EO (Bojica, Fuentes, & Gómez-Gras, 2011). Conversely, the extended empirical studies no strong relationship between EO and FP.…”

Organizational Culture and Entrepreneurial Orientation: Mediating Role of Entrepreneurial Leadership

“…According to Cameron and Quinn (2011), the behaviors such as high information flow through the system by maintaining a manager in-charge of the system can be adopted to bring the hierarchical system. The action like flow of information has previously been studied to be important for knowledge accumulation (Al-Hawamdeh, 2002), which is important for entrepreneurial orientation (Bojica, del Mar Fuentes, & Gómez-Gras, 2011;De Clercq, Dimov, & Thongpapanl, 2013). This is not the only study which shows that organizations have high level of control in the organization.…”

Social capital, absorptive capacity and entrepreneurial behaviour in an international context

“…This investigation will analyse organizational entrepreneurship as a strategic orientation that approaches organizational behaviour displaying innovativeness, risk-taking and proactivity (Covin and Slevin, 1991;Lumpkin and Dess, 1996). Therefore, some authors (Bojica et al, 2011) have noted that the acquisition and the use of knowledge impact significantly on the firm's EO and on its performance.…”