Academic journal article International Journal of Entrepreneurship

Varying Entrepreneurial Orientation Levels and Export Performance

Academic journal article International Journal of Entrepreneurship

Varying Entrepreneurial Orientation Levels and Export Performance

Article excerpt

INTRODUCTION

This study draws inspiration from the studies done earlier in the areas of Nascent Entrepreneurship, Born-Globals, International Entrepreneurship and studies that connect Entrepreneurial Orientation and Firm Performance. Studies in the past indicate that differences exist between family and non-family businesses. Based on the recommendations put forth by seminal paper by (Sharma et.al 1997) comparative studies attempted between family and non-family firms like Anderson & Reeb, (2003); Coleman & Carsky, (1999); Gudmundson, Hartman, & Tower, (1999); M. Lee & Rogoff, (1996); Littunen, (2003); Westhead, Cowling, & Howorth, (2001) present mixed results. While some studies report that these firms differ in entrepreneurial activities undertaken, performance, perception of environmental opportunities and threats but differ on strategic orientation, sources of debt financing etc. Similarly some studies report that family firms outperform non-family firms but it is reported the other way in some other studies (Daily and Dollinger, 1992; Binder Hamlyn, 1994). Conceptually, Entrepreneurial orientation (EO) is understood as a process and includes decision making as practiced by entrepreneurs leading to new entry and business support activities. (Lumpkin and Dess, 2001; Kropp, Lindsay, and Shoham, 2006). EO is measured using three dimensions risk taking, proactiveness and innovativeness (Naman and Slevin, 1993). These three components of entrepreneurship prove to constitute a unidimensional measurement of EO (1983). Different conceptualization of EO reveals varying degree of relationship with performance (Rauch, Wiklund, Lumpkin & Frese, 2004).

Family businesses when viewed from generational perspective give varying results. Family businesses, when analyzed from the generational perspective, emphasizes that members of different generations differ in stages of development of their firms and in their own capability to influence the firm (Greiner 1972; Sonfield and Lussier 2004). Founders are entrepreneurs with the necessary impetus to create a business (Schein 1983; Aldrich and Cliff 2003). As generations evolve, the challenges faced by the entrepreneurs too differ (Peiser and Wooten 1983). The entrepreneurs, when classified based on generational perspective differ in the degree of family identification, influence and personal investment in the firms (Gersick et al. 1997; Schulze et al. 2003). The entrepreneurs are found to differ in various dimensions as seen in the previous studies like Bammens et.al., 1997; Sonfield and Lussier 2004 etc. The impact of EO on the entrepreneurs when classified based on generational dimensions yields mixed results. The Entrepreneurial Orientation, when measured using autonomy, risk-taking and competitive aggressiveness are observed to decrease as generations get involved (Martin & Lumpkin, 2003; Kellermanns and Eddleston, 2006) observe that generational involvement has no impact on corporate entrepreneurship. This study purports to bridge the gap in the earlier studies on Family businesses, that are operating internationally, when analyzed from generational perspective.

REVIEW OF LITERATURE

Entrepreneurial Orientation (EO) refers to the strategy making processes that provide organizations with a basis for entrepreneurial decisions and actions (e.g., Lumpkin & Dess, 1996; Wiklund & Shepherd, 2003). Although many dimensions are used to define the entrepreneurial orientation of exporters, the domination held by the three-dimension construct put forth by Miller on other variables is notable. (Miller and Friesen, 1978, Covin and Slevin, 1986, 1989 and Naman and Slevin, 1993; Knight, 1993; Wiklund, 1999) Lumpkin and Dess, 1996; Lee & Peterson; Kreiser et al., 2002; Tarabishy et al., 2005. Miller (1983) characterized an entrepreneurial firm as "one that engages in product/service--market innovation, undertakes somewhat risk ventures, and is first to come up with "proactive" innovations, beating competitors to the punch". …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.