entrepreneurial orientation - preliminary related literature

5/20/2018 Entrepreneurial Orientation - Preliminary Related Literature

ENTREPRENEURSHIP: Preliminary Related Literature andStudies

Garcia, Carlito D. Fundamentals of Research and ResearchDesigning. Quezon City: Katha Publishing Comany, !nc., "##$.

Punch, Keith F. De%eloing &'ecti%e Research Proosal. (ondon:)age Publications, "###.

Related )tudies

htt:**+++.sbaer.uca.edu*research*icsb*"##*F-$-*D--$.htm

htt:**+++.huizenga.no%a.edu*ame*&ntrereneurial.htm

Components of Entrepreneurial Orientation

by Morris, Michael H.^Coombes, Susan^Schindehutte, Minet^Allen, Jeffrey

Journal of Leadership & Orani!ational Studies" Summer, #$$% "

)ource:htt:**+++.entrereneur.com*tradeournals*article*/0#102".html

Antecedents and outcomes of entrepreneurial and maret orientations in a

non!pro"t conte#t: t$eoretical and empirical insi%$ts

3rganizations can be e4ected to %ary in terms of their entrereneurialorientation 5&36. &ntrereneurial orientation has been concetualized asha%ing t$ree underlyin% components: inno&ati&eness' ris!tain%'and proacti&eness 5Co%in and )le%in, 7178 Kreiser, et al., "##"8 9iller,71$8 i;lund and )heherd, "##06.

Inno&ati&enessrefers to the see;ing of creati%e, unusual, or no%el solutionsto roblems and needs.


ris;y and roacti%e it is, and any number of these e%ents is ossible in agi%en organization. >ccordingly, entrereneurshi can be said to occur in%arying degrees and amounts 5Kreiser et al., "##"8 9orris and )e4ton, 77/6.(um;in and Dess 577/6 ha%e suggested &3 may ha%e t+o additionalcomonents, cometiti%e aggressi%eness and autonomy. ?o+e%er, ascometiti%e aggressi%eness concetually o%erlas +ith roacti%eness, and

autonomy is arguably a conte4tual %ariable that enables entrereneurialbeha%ior 5Kurat;o, et al., "##06, the current study concentrates on the threecomonents emhasized in the maority of concetual and emirical studies.


Entrepreneurs$ip is the ractice of starting ne+ organizations orre%italizing mature organizations, articularly ne+ businesses generally inresonse to identi=ed oortunities. &ntrereneurshi is often a diAcultunderta;ing, as a %ast maority of ne+ businesses fail. &ntrereneurialacti%ities are substantially di'erent deending on the tye of organizationthat is being started. &ntrereneurshi ranges in scale from solo roects

5e%en in%ol%ing the entrereneur only art-time6 to maor underta;ingscreating many ob oortunities. 9any high-ro=le entrereneurial %enturessee; %enture caital or angel fundingin order to raise caital to build thebusiness. >ngel in%estors generally see; returns of "#-$# and moree4tensi%e in%ol%ement in the business. 9any ;inds of organizations no+ e4istto suort +ould-be entrereneurs, including secialized go%ernmentagencies, business incubators, science ar;s, and some HG3s.

ustrian economists such as (ud+ig %on 9isesand %on ?aye;. !n )chumeter 570#6, an entrereneur is a erson +ho is+illing and able to con%ert a ne+ idea or in%ention into a successfulinno%ation. &ntrereneurshi forces creati%e destruction across mar;etsand industries, simultaneously creating ne+ roducts and business models. !nthis +ay, creati%e destruction is largely resonsible for the dynamism ofindustries and long-run economic gro+th. Desite )chumeters early "#th-century contributions, the traditional microeconomic theory of economics hashad little room for entrereneurs in its theoretical frame+or;s 5insteadassuming that resources +ould =nd each other through a rice system6

For Fran; ?. Knight 57/I6 and Peter Druc;er 57I#6 entrereneurshi isabout ta;ing ris;. mbiguity, +hich is hard to measure statistically 5such as therobablity of dra+ing a red ball from a ar containing 0 red balls but+ith an un;no+n number of +hite balls6.


the mar;et for cola drin;s 5+hich has been created by Coca Cola6, there is noguarantee that a mar;et e4ists for a articular ne+ layer in the colacategory.


Advantages of Entrepreneurship

&%ery successful entrereneur brings about bene=ts not only for himself*

herself but for the municiality, region or country as a +hole.


ser%ices.


+orld.

&ntrereneurshi through the Lears:

!t +as disco%ered that the term entrereneurshiO could be found from theFrench %erb entrerendeO in the t+elfth century though the meaning may not

be that alicable today.


of a ne+ organization, regardless of its ability to sustain itself, let alone ma;ea ro=t.


e4isting mar;et, ne+ entrants may be able to gain this cometiti%ead%antage o%er e4isting mar;et layers.

!n the case of the hot-dog seller, it may be argued that his addition of3riental )+eet and )our sauce toings may be seen as nondescrit.


>nother e4amle from the =eld of e-commerce is )tuart );orman, the founderof Reel.com. Reel.com is essentially one of the =rst cyber mo%ie store +ith a%ery large in%entory of o%er a ## ### %ideos.


either on their o+n or their families are models and insiration for all +ould-be entrereneurs in the country. . !ndeed, +e need a ne+form of Peole Po+er to dri%e entrereneurshi and that ne+ form of eoleo+er is the inno%ati%e use of resources to build businesses and ro%ide obs-- that is the de=nition actually of entrereneurshi.

nd +hat is the &-factorU -ein% an entrepreneur is a sill in$erent int$e .ilipino/ 0ust as .ilipinos are natural musicians' .ilipinos arenatural entrepreneurs/ (ost .ilipinos do $a&e t$at E!factor. >nd !m%ery hay that oey has ut together a mechanism to be able to bring outthat &-factor to its greatest otential and reality.

nd though it is not e4actly... >nd though itsnot e4actly an integral art of the theme of this session, let me ta;e thisoortunity to be oyful as a catholic and to be otimistic as a catholic and tocelebrate our ne+ cardinal.

e share the oy and ride of the entire Filiino catholic community on thise%ent. Cardinal Rosales deser%es this honor for the leadershi he has sho+nin sreading and uholding the faith and in guiding our eole along the ath


of moral and siritual enlightenment. !t +as an ausicious day that +e gotthe message about his naming, because on this ausicious day, +e reminiscethe call of his redecessor, the late aime Cardinal )in, for eole o+er inthe shining moments of &D)>.

Central an; oll late last +ee; found e4ecuti%es more bullish on theoutloo; for their comanies than at any eriod since that Central an; sur%eybegan -- that is otimistic, that is being not afraid.

! remember +hen oeys father, oe Concecion +as my boss in theDeartment of nd !%e ne%er forgottenthat e4hortation through the many trying times !%e had as a ublic ser%ant.

>nd so on this day, on the occasion of the "#th >nni%ersary of &D)>, on theoccasion of our celebrating otimism as an inherent art of that &-factor, letus resol%e to not let olitic;ing or destabilization ut do+n or destroy +hat+e ha%e here before us -- the Filiino sirit of enterrise.

>nother thing ! use to remember from +hat )ecretary Concecion use to tellus, and +e ut it all o%er the D

9abuhay ang Piliino entrereneur

9araming salamat sa inyong lahat.

>rtee La as; me to announce to you that ! ha%e instructed him, as myresidential ad%iser on ob creation, to coordinate +ith the (and an; and theDP to set aside an initial amount of 0# million esos to ser%e as anincubation fund +ith softer rates and longer term ro%isions for the =nancing

use of deser%ing and romising start-u business lan +inners that thePhiliine Center for &ntrereneurshi +ill endorse and %et during thebusiness start-u eriod.

e not afraid, our ne+ entrereneurs.

9araming salamat muli.


PROACTI1ENESS AN+ CO(PETITI1E A22RESSI1ENESS

)ource http''(((.babson.edu'entrep'fer'papers%'lump/in'lum-.htm


> similar trend is e%ident in their 77 aer +hich describes anentrereneurial osture as a =rms roensity to aggressi%ely androacti%ely comete +ith industry ri%als 577: #6. !n fact, the $Zitemroacti%eness scale used in the Co%in and )le%in 57176 study is identical tothe cometiti%e aggressi%eness scale used in a 77# study by Co%in andCo%in. >lthough a roacti%e stance relati%e to cometitors may be %ital to

entrereneurial success, Co%in and )le%ins aroach seems to ha%eminimized imortant di'erences bet+een cometiti%e aggressi%eness androacti%eness.

e suggest that roacti%eness and cometiti%e aggressi%eness are distinctconcets +ith uni@ue de=nitions. Proacti&eness su%%ests a for4ard7looin% perspecti&e c$aracteristic of a maretplace leader t$at $ast$e foresi%$t to act in anticipation of future demand.


Chen and ?ambric;s 57706 descrition suggests that successful =rms needto be both roacti%e and cometiti%ely aggressi%e. Humerousentrereneurshi scholars ha%e suggested that all the dimensions of an &3are resent simultaneously in an entrereneurial =rm. lthough it is @uite ossible that a =rm +ould e4hibit bothcometiti%e aggressi%eness and roacti%eness, +e suggest that these t+odimensions may %ary indeendently of each other in a gi%en conte4t. !nother +ords, a =rm may e4hibit both cometiti%e aggressi%eness androacti%eness, but their resence may %ary in strength or change o%er time.
http://www.letsgo.com.ph/what-we-do/the-context-entrepreneurship-in-the-philippineshttp://www.letsgo.com.ph/what-we-do/the-context-entrepreneurship-in-the-philippineshttp://www.letsgo.com.ph/what-we-do/the-context-entrepreneurship-in-the-philippineshttp://www.letsgo.com.ph/what-we-do/the-context-entrepreneurship-in-the-philippines


study by )mart Communications adds, S only I.I of graduates getemloyedS.


'ub"itted to 1 23th4nternational Council for '"all Business

01203404 A5S26AC2

EXTENDED ABSTRACT ONLY- FINAL PAPER TO FOLLOW

INTRODUCTION

6esearchers in the small and medium enterprise field are constantly as/ed

(here are the most entrepreneurial firms7 Are there differences in the

entrepreneurial beha)iors bet(een different si!e firms7 4o firms enaed in

international acti)ities beha)e differently than domestic firms7 4oes e8uityo(nership chane the entrepreneurial beha)ior of o(ners'manaers7 2hese

are only some of the 8uestions as/ed by consultants, practitioners and publicofficials but are a startin point that (e can address by use of the

entrepreneurial orientation scale

2he results reported here are based on the responses from 9:;- firms in a

multi country study of small and medium enterprises ahra, 9:D Co)in and Miles,9=.

2he entrepreneurial orientation


6esearch indicates that firms scorin hihly on the three dimensions of 0O

achie)ed superior performance compared to firms that scored lo(er on these

dimensions ahra, 9-D 4ess, Lump/in, and Co)in, 9%=.

2he measure of 0O most commonly employed in these )arious studies (as de)eloped by

Co)in and Sle)in


(ith archi)al data. 2heir research pro)ided Eadditional e)idence for the accuracy and

reliability of founder+reported performance dataF


?en Chad(ic/, 3icholls State Kni)ersity

2im 5arnett, Louisiana 2ech Kni)ersity

Sean 4(yer, Louisiana 2ech Kni)ersity

E&ecutie Summary

The ob5ective of this study is to further the e0tant research on fir"*level entrepreneurship by

e"pirically assessing the relationships bet%een 678 entrepreneurial orientation and fir" perfor"ance,and 698 organi:ational culture and entrepreneurial orientation. To test our hypotheses, a self*report;uestionnaire %as "ailed to a national sa"ple of 9,7= co"pletedand usable ;uestionnaires %ere returned. !fter controlling for ban) si:e and age, no significantrelationship %as found bet%een entrepreneurial orientation and any of the three "easures of fir"perfor"ance. -o%ever, there is e"pirical support for the theoretical lin) bet%een organi:ationalculture and entrepreneurial orientation.

Fir"*level entrepreneurship, and especially its lin) to perfor"ance, has, and continues to

generate high levels of interest a"ong scholars and practitioners. Much of this attention resultsfro" the perception that fir"s %hich engage in relatively high levels of ris)y, proactive, andinnovative behaviors can effectively develop, "aintain, and&or enhance organi:ationalco"petitiveness and perfor"ance 6Covin ? Miles, 7@@@8. Barrett and Weinstein 67@@@8 suggestthat the proliferation of research has enriched the field in ter"s of i"proved conceptuali:ations,"odeling, and e"pirical study. -o%ever, the abundance of both anecdotal and e"piricalevidence espousing a positive relationship bet%een entrepreneurship and perfor"ance has led"any to vie% entrepreneurship as inherently beneficial. 'uch beliefs "ay have resulted innu"erous "anagers e0periencing pressure fro" sta)eholders to engage in higher levels ofentrepreneurial activities 6Wi)lund, 7@@@8, possibly to the detri"ent of the fir".

While "uch of the published research in the field does support a positive relationshipbet%een entrepreneurial orientation and fir" perfor"ance, additional e"pirical evidence is needed

before researchers or practitioners should, %ith confidence, encourage %holesale adoption of anentrepreneurial orientation 6Wi)lund, 7@@@8. Evidence suggests that an entrepreneurial orientation"ay notalwaysbe appropriate 6e.g., (arago:oglu ? Bro%n, 7@AA Na"an ? 'levin, 7@@> ahra ?Covin, 7@@=8. 4n addition, other studies i"ply that fir"s that are overly focused on anystrategicorientation "ay divert attention and resources a%ay fro" %hat "ay be e;ually, or "ore, i"portantconcerns. For e0a"ple, Covin and 'levin 67@A@8 found that strategic posture %as not a significantindependent predictor of fir" perfor"ance. !lso, %hile Wi)lund 67@@@8 did report a significant andenduring association bet%een entrepreneurial orientation and fir" perfor"ance, access to financialcapital had a larger influence on perfor"ance. 4n su", the notion that an entrepreneurial orientationprovides a funda"ental fir"*%ide advantage re"ains in ;uestion and in need of additionale0a"ination.

Further research is also needed to "ore specifically identify in %hat conte0t an

entrepreneurial orientation "ay best be supported. Covin and 'levin 67@@78, in developing theirModel of Entrepreneurship as Fir" Behavior, identified three categories of variables that could betheoretically or e"pirically lin)ed to a fir"Ds ability to successfully develop and&or "aintain anentrepreneurial orientationenviron"ental, strategic, and internal. 4ncluded a"ong the latter %asorgani:ational culture, a focus of the current study. $ther potentially significant variables have alsobeen proposed and tested. !nd %hile over 2= e"pirical papers have e0a"ined organi:ational andenviron"ental factors that influence a fir"Ds entrepreneurial activities and&or the outco"es of theseactivities 6ahra, ennings, ? (urat)o, 7@@@8, a fra"e%or) for fully e0plaining and predicting fir"*level entrepreneurship has not yet been achieved. 4ncreasing understanding in this regard %ill


re;uire continued efforts to identify, test, and retest the nature, antecedents, and effects of anentrepreneurial orientation.

$ne potentially i"portant factor that "ay influence the direction, nature, and effect ofentrepreneurial activities is organi:ational culture 6ahra, 7@@> ahra, et al., 7@@@8. 4n fact,Corn%all and erl"an 67@@


ahra ? Covin, 7@@=8. 'uch first*"over advantages play a critical role in a fir"Ds ability to developand&or sustain co"petitive advantages over rivals and achieve above*average profitability.

Most of the recently published e"pirical evidence supports a positive relationship bet%eenentrepreneurial orientation and fir" perfor"ance. Covin and 'levin 67@A38 found a si"plecorrelation of r L .>@ 6p .


F4N#4NG'

!s posited by -7%e e0pected to find a positive relationship bet%een entrepreneurial orientation and

fir" perfor"ance. The results of the hierarchical regression analysis are sho%n in Table 9. Tore"ove e0traneous influences on the three dependent perfor"ance variables, ban) si:e and ban)age %ere first entered into the regression e;uation. The independent variableentrepreneurialorientation**%as entered in the ne0t step. No significant relationships %ere found bet%eenentrepreneurial orientation and any of the three "easures of fir" perfor"ance, or the fir"Ds ability tounderstand, develop, or "aintain entrepreneurial activity.

Further analysis %as perfor"ed by classifying fir"s as either conservative or entrepreneurialbased on their score on the Entrepreneurial $rientation scale. Those that scored less than >.=%ere classified as conservative. Fir"s that scored above 2.= %ere classified as entrepreneurial.Fir"s %ith scores of >.= to 2.= on the I*point scale could not be una"biguously classified and%ere o"itted fro" this analysis. This classification techni;ue has been used in previous fir"*level entrepreneurship research to create distinct conservative and entrepreneurial subgroups6Covin, 7@@7 (arago:oglu ? Bro%n, 7@AA Miller ? Friesen, 7@A98.

Multivariate analysis of co*variance %as conducted on the three perfor"ance "easures%ith ban) si:e and age as co*variates 6see Table >8. The conservative versus entrepreneurialban)s had "ean scores of A and .


about the strength of the relationships bet%een these three culture types and entrepreneurialorientation. !dhocracy culture 6B L


These results support previous e"pirical research that found significant and positiverelationships bet%een organi:ational culture and business*related ris)*ta)ing 6Burgel"an ? 'ayles,7@A38, proactiveness 6Miller ? Friesen, 7@A28, and innovation 6(anter, 7@A98, all of %hich aredi"ensions of the Entrepreneurial $rientation scale used in this study. Finally, a significant andpositive relationship %as found bet%een "ar)et culture and entrepreneurial orientation 6B L

entrepreneurial orientation - preliminary related literature

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