The role of entrepreneurial orientation in tangible and intangible resource acquisition and new venture growth

Abstract

This study scrutinizes the mediating role of tangible–intangible resources between entrepreneurial orientation and new venture growth. We analyzed the data of 308 Pakistani manufacturing‐SMEs through the AMOS. The results displayed that risk‐taking and innovation significantly while proactive do not influence new venture growth. Risk‐taking, innovativeness, and proactiveness significantly influence tangible–intangible resources. Tangible–intangible resource acquisition does not mediate between risk‐taking and new venture growth; however, it partially mediates between innovativeness and new venture growth and fully mediates between proactiveness and new venture growth. This research recommends owners/managers of new ventures to emphasize entrepreneurial activities to access external resources for survival.

A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries

“…Every year, millions of entrepreneurs start new ventures, but over half of them fail in the early stages. There are several reasons behind their failures in developing countries, including the lack of entrepreneurial postures, poor support, entrepreneurial skills, and entrepreneurial orientation (EO) and a shortage of resources (Khattak & Ullah, 2021; McGee & Peterson, 2019). Recently, several studies focusing on developing countries have proposed and corroborated that EO is one of the significant factors for SMEP (Fan et al, 2021; Khattak & Ullah, 2021).…”

“…There are several reasons behind their failures in developing countries, including the lack of entrepreneurial postures, poor support, entrepreneurial skills, and entrepreneurial orientation (EO) and a shortage of resources (Khattak & Ullah, 2021; McGee & Peterson, 2019). Recently, several studies focusing on developing countries have proposed and corroborated that EO is one of the significant factors for SMEP (Fan et al, 2021; Khattak & Ullah, 2021). In this context, Fatima and Bilal (2020) proposed that, due to competition and increasing globalization, SMEs with a higher level of EO perform better.…”

“…In this context, Fatima and Bilal (2020) proposed that, due to competition and increasing globalization, SMEs with a higher level of EO perform better. Despite the direct significant effect of EO on SMEP, it has been suggested that there is lack of comprehensive understanding in the case of emerging countries (Fan et al, 2021) and that this direct effect is mediated–moderated by several factors, such as resource acquisition (Khattak & Ullah, 2021), SME owners' social skills and active social networking (Fatima & Bilal, 2020), and absorptive capacity (Kohtamäki et al, 2019). Ali Qalati et al (2021) recently explored the effect of technological‐organizational‐environmental (TOE) factors on SMEP in developing countries, arguing and evidencing that SMA plays a mediating role between TOE and SMEP; however, these authors ignored the mediating role of customer relationship management capabilities (CRMC).…”

“…Although social media can change the business setting, improve SMEP, and improve relationships, marketers have not yet fully understood social media's potential to generate new opportunities and threats (Foltean et al, 2019). Furthermore, as well as EO and SMA, some scholars evidenced that IC can also increase SMEP (Fan et al, 2021; Maldonado‐Guzmán et al, 2020), arguing that the EO–SMA–SMEP relationship can be influenced by several factors, such as CRMC, selling capabilities, IC, marketing capabilities, types of social media platforms, resource acquisition, and active social networking capability, leading to calls for further studies to develop mediated–moderated conceptual models (Alegre & Chiva, 2013; Ali Qalati et al, 2021; Fan et al, 2021; Fatima & Bilal, 2020; Ferreira et al, 2020; Khattak & Ullah, 2021; McGee & Peterson, 2019; Olanrewaju et al, 2020).…”

“…Second, the present study contributes to the resource‐based view (RBV), which supports the significance of intangible resources and organizations' capabilities in improving performance and gaining competitive advantage. The third contribution relates to gradually increasing emphasis on the causal mechanisms underlying EO, SMA, CRMC, and SMEP (Ali Qalati et al, 2021; Khattak & Ullah, 2021; Olanrewaju et al, 2020).…”