Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market

Lin Cui; Di Fan; Feng Guo; Yi Fan

doi:10.1016/j.indmarman.2017.11.003

Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market

Lin Cui, Di Fan^*, Feng Guo, Yi Fan

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

100 Citations (Scopus)

Abstract

This research examines the mechanisms through which entrepreneurial orientation (EO) affects firm performance in an emerging market context. We argue that EO drives firms to develop the dynamic capabilities of absorptive capacity (ACAP) and boundary-spanning (BS), and that these capabilities enhance firm performance. Moreover, the effectiveness of these knowledge- and network-based dynamic capabilities in mediating the EO-performance relationship is contingent on the institutional conditions firms are exposed to. We test our hypotheses using multi-sourced data on Chinese high-tech firms in business-to-business (B2B) markets. Our results show that ACAP and BS mediate the positive effect of EO on firm performance, and that as the development of market-supporting institutions improves, the mediating effect of ACAP becomes stronger while that of BS weakens.

Original language	English
Pages (from-to)	27-40
Number of pages	14
Journal	Industrial Marketing Management
Volume	71
DOIs	https://doi.org/10.1016/j.indmarman.2017.11.003
Publication status	Published - May 2018

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10.1016/j.indmarman.2017.11.003

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title = "Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market",

abstract = "This research examines the mechanisms through which entrepreneurial orientation (EO) affects firm performance in an emerging market context. We argue that EO drives firms to develop the dynamic capabilities of absorptive capacity (ACAP) and boundary-spanning (BS), and that these capabilities enhance firm performance. Moreover, the effectiveness of these knowledge- and network-based dynamic capabilities in mediating the EO-performance relationship is contingent on the institutional conditions firms are exposed to. We test our hypotheses using multi-sourced data on Chinese high-tech firms in business-to-business (B2B) markets. Our results show that ACAP and BS mediate the positive effect of EO on firm performance, and that as the development of market-supporting institutions improves, the mediating effect of ACAP becomes stronger while that of BS weakens.",

keywords = "Absorptive capacity, Boundary-spanning, Emerging market, Entrepreneurial orientation, Institutional voids, Market-supporting institutions",

author = "Lin Cui and Di Fan and Feng Guo and Yi Fan",

note = "Publisher Copyright: {\textcopyright} 2017 Elsevier Inc.",

year = "2018",

month = may,

doi = "10.1016/j.indmarman.2017.11.003",

language = "English",

volume = "71",

pages = "27--40",

journal = "Industrial Marketing Management",

issn = "0019-8501",

publisher = "Elsevier Inc.",

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TY - JOUR

T1 - Explicating the relationship of entrepreneurial orientation and firm performance

T2 - Underlying mechanisms in the context of an emerging market

AU - Cui, Lin

AU - Fan, Di

AU - Guo, Feng

AU - Fan, Yi

PY - 2018/5

Y1 - 2018/5

N2 - This research examines the mechanisms through which entrepreneurial orientation (EO) affects firm performance in an emerging market context. We argue that EO drives firms to develop the dynamic capabilities of absorptive capacity (ACAP) and boundary-spanning (BS), and that these capabilities enhance firm performance. Moreover, the effectiveness of these knowledge- and network-based dynamic capabilities in mediating the EO-performance relationship is contingent on the institutional conditions firms are exposed to. We test our hypotheses using multi-sourced data on Chinese high-tech firms in business-to-business (B2B) markets. Our results show that ACAP and BS mediate the positive effect of EO on firm performance, and that as the development of market-supporting institutions improves, the mediating effect of ACAP becomes stronger while that of BS weakens.

AB - This research examines the mechanisms through which entrepreneurial orientation (EO) affects firm performance in an emerging market context. We argue that EO drives firms to develop the dynamic capabilities of absorptive capacity (ACAP) and boundary-spanning (BS), and that these capabilities enhance firm performance. Moreover, the effectiveness of these knowledge- and network-based dynamic capabilities in mediating the EO-performance relationship is contingent on the institutional conditions firms are exposed to. We test our hypotheses using multi-sourced data on Chinese high-tech firms in business-to-business (B2B) markets. Our results show that ACAP and BS mediate the positive effect of EO on firm performance, and that as the development of market-supporting institutions improves, the mediating effect of ACAP becomes stronger while that of BS weakens.

KW - Absorptive capacity

KW - Boundary-spanning

KW - Emerging market

KW - Entrepreneurial orientation

KW - Institutional voids

KW - Market-supporting institutions

UR - http://www.scopus.com/inward/record.url?scp=85035063817&partnerID=8YFLogxK

U2 - 10.1016/j.indmarman.2017.11.003

DO - 10.1016/j.indmarman.2017.11.003

M3 - Article

SN - 0019-8501

VL - 71

SP - 27

EP - 40

JO - Industrial Marketing Management

JF - Industrial Marketing Management

ER -

Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market

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