Entrepreneurial Orientation, Firm Strategy and Small Firm Performance
Reference: Lechner, C. and Gudmundsson, S.V. (2014). Entrepreneurial Orientation, Firms Strategy and Small Firm Performance. International Small Business Journal, 32(1), 36-60.
Posted: 7 Sep 2012 Last revised: 9 May 2019
Date Written: September 6, 2012
We examine how individual entrepreneurial orientation dimensions influence the relationship between competitive strategy and firm performance. The findings, based on a data set of 115 entrepreneurial firms, show the different impacts that the individual dimensions of entrepreneurial orientation have on competitive advantage as well as the different effects the two generic types of competitive advantage (cost leadership and differentiation) have on performance. Innovativeness is the most robust variable influencing differentiation and firm performance. Risk taking and competitive aggressiveness negatively influence both generic strategies. Overall, this study refines our understanding of the effects of entrepreneurial orientation on firm performance.
Keywords: Competitive strategy, entrepreneurial orientation, firm survival, firm performance
JEL Classification: M13
Suggested Citation: Suggested Citation