The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization

Journal of Entrepreneurship, Management and Innovation, Vol. 10, Issue 4, 2014, pp. 169

31 Pages Posted: 11 Apr 2015 Last revised: 22 Apr 2015

See all articles by Jörg Freiling

Jörg Freiling

University of Bremen - Faculty of Business Studies and Economics

Christoph Lütke Schelhowe

University of Bremen, Department of Business Studies and Economics

Date Written: March 15, 2015

Abstract

Entrepreneurial orientation has emerged as a major construct in entrepreneurship literature. However, existing definitions of entrepreneurial orientation mainly focus on explorative behavior like innovativeness, proactiveness and risk-taking. Based on the long tradition of research on entrepreneurial functions, we argue that exploitative activities are no less an entrepreneurial endeavor than explorative activities. Following this understanding, we elaborate a broader conceptualization of the entrepreneurial orientation construct. In an empirical study with 346 established companies, we explore its effect on the performance of internationalization. Entrepreneurial orientation in its broader conceptualization positively influences the international performance and the effect is by far stronger than the one observed in existing studies. The reason for this is that both explorative and exploitative dimensions matter and equally drive the international performance. Entrepreneurial orientation positively influences the growth of the international activities as well. However, its effect is much lower. Whereas the explorative dimensions tend to foster the international growth, the exploitative dimensions do not show any effect.

Keywords: entrepreneurial orientation, entrepreneurial functions, international performance, international growth, exploration, exploitation

Suggested Citation

Freiling, Jörg and Lütke Schelhowe, Christoph, The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization (March 15, 2015). Journal of Entrepreneurship, Management and Innovation, Vol. 10, Issue 4, 2014, pp. 169. Available at SSRN: https://ssrn.com/abstract=2578701

Jörg Freiling (Contact Author)

University of Bremen - Faculty of Business Studies and Economics ( email )

Wilhelm-Herbst-Str. 5
Bremen, D-28359
Germany
++49 421 218 66870 (Phone)
++49 421 218 66902 (Fax)

HOME PAGE: http://www.lemex.uni-bremen.de

Christoph Lütke Schelhowe

University of Bremen, Department of Business Studies and Economics ( email )

Wilhelm-Herbst-Str. 5
D-28359 Bremen
Germany

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