Naslov
Exploring direct and non-linear effects of entrepreneurial orientation and its dimensions on firm performance in a small, open, transitional economy

Autori
Morić Milovanović, Bojan

Izvornik
Strategic Management (1821-3448) 27 (2022), 3; 26-38

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
entrepreneurial orientation ; performance ; nonlinearity ; transitional economy ; SMEs

Sažetak
Background: The relationship between entrepreneurial orientation (EO) and small firm performance has been extensively researched over the last couple of decades. However, the scientific community still does not havea unanimous view regarding non-linear relationships between EO and performance, especially when addingseparate EO dimensions. Purpose: This paper explores the non-linear relationship between EO, observed as a unidimensional and multidimensional construct, and small business performance within a small, open, andtransitional economy. Moderation effects of environmental turbulence on both direct and non-linear EO-performance relationships have been explored, as well. Study design/methodology/approach: Hierarchical regression analysis was used to test the research hypothesis on the data collected from 109 Montenegrin SMEs.Finding/conclusions: Results reveal that EO has a direct and inverted U-shaped non-linear relationship with small firm performance. Innovativeness and proactiveness have a direct positive effect on small firmperformance. Risk-taking and autonomy have an inverted U-shaped non-linear relationship with small firm performance. Environmental turbulence does not positively moderate direct nor non-linear relationship between EO and small firm performance. Limitations/future research: Limitations refer to the relatively small dataset which may affect the strength of the result. Specific national institutional and cultural setting could also influence the findings. Information was gathered from the owners and managers of the observed firms which limited the ability to gather more diverse information from other stakeholders. Research focused on only one moderatorexplaining the non-linear relationship between EO and small firm performance. Therefore, future research should focus on conducting a multi-country analysis with larger data sets to strengthen the external validity ofthe present study, and should adopt a multi- level perspective in investigating the role of inter-relations among EO dimensions in explaining performance variations. Future studies should continue testing the effects of othermoderators in explaining the non-linear relationship between EO and firm performance, especially within a longitudinal context.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA