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The nature of entrepreneurial orientation strength: the impact of shared values on firm performance

Published online by Cambridge University Press:  05 August 2021

Laurence G. Weinzimmer Open the ORCID record for Laurence G. Weinzimmer [Opens in a new window] ,
Eric J. Michel Open the ORCID record for Eric J. Michel [Opens in a new window]  and
Jennifer Robin
Laurence G. Weinzimmer*
Affiliation:
Foster College of Business, Bradley University, 1501 W. Bradley Avenue, Peoria, IL61625, USA
Eric J. Michel
Affiliation:
College of Business, Northern Illinois University, Barsema Hall, 245C2, DeKalb, IL60115, USA
Jennifer Robin
Affiliation:
School of Business, Southern Connecticut State University, 501 Crescent Street, New Haven, CT 06515, USA
*
Author for correspondence: Laurence G. Weinzimmer, E-mail: [email protected]
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Abstract

Drawing on Wales, Monsen, and McKelvie's (2011, Entrepreneurship Theory and Practice, 35(5), 895–923) model of entrepreneurial orientation pervasiveness and the strong culture hypothesis (Denison, 1984, Organization Dynamics, 13, 4–22), this study investigates how entrepreneurial orientation (EO) strength, defined as the level of agreement in the shared perceptions of EO, serves as a boundary condition of the EO–firm performance relationship. Four field studies provide evidence for a valid and reliable 10-item multidimensional measure of entrepreneurial orientation, the EO-10, which in turn, may be used to assess EO strength. We establish content and construct validity of the EO-10 (study 1; n = 447 employees), criterion-related validity with revenue growth and sales growth (study 2; n = 412 employees in 43 profit centers), and convergent validity with Covin and Slevin's (1989, Strategic Management Journal, 10, 75–87) 9-item measure (study 3; n = 291 employees). Finally, in study 4 (n = 853 employees nested in 22 organizations), we demonstrate the interactive effects of EO and EO strength on profit growth and revenue growth. In sum, this study provides conceptual and empirical evidence for the importance of EO strength as a moderator of the EO–firm performance relationship.

Keywords

Cultureentrepreneurial orientation strengthfirm performancescale development
Type
Research Article
Information
Journal of Management & Organization , Volume 27 , Issue 4 , July 2021 , pp. 715 - 735
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2021

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