CLARIFYING THE ENTREPRENEURIAL

ORIENTATION CONSTRUCT AND

LINKING IT TO PERFORMANCE

G. T. LUMPKIN
Northeastern State University Academy of Management
Review 1996, Vol. 21, No. 1,
GREGORY G. DESS
135-172.
The University of Texas at Arlington
Agenda

Principal concepts
Research goal
Theoretical framework
Alternative contingency models proposals
Implications
Conclusions
PRINCIPAL CONCEPTS
Establish the difference between concepts of entrepreneurship and entrepreneurship
orientation (EO)
Entrepreneurship = New entry
Entrepreneural orientation (EO): Processes, practices, and decision-making activities that
lead to new entry
Research goal

Investigate the relationship of entrepreneurship orientation to performance.

Provide an integrative framework for exploring the relationship between EO and
performance by integrating prior theory and empirical findings into a researchable whole.
THEORETICAL FRAMEWORK
Entrepreneurial Orientation
Dimensions

Independent action of an individual or a team in bringing an

Autonomy
idea and carrying it to completion.

Innovativeness New ideas and creative processes that may result in new
products, services, or technological processes.

Risk taking "venturing into the unknown" "committing a relatively large

portion of assets" and "borrowing heavily"
 Entrepreneurial Orientation
Dimensions

Proactiveness Initiative, anticipating and pursuing new opportunities.

Competitive Propensity to challenge competitors to achieve entry or

aggressiveness improve position.
Propositions

Autonomy, innovativeness, risk taking, proactiveness, and

1 competitive aggressiveness are salient dimensions of an
entrepreneurial orientation.

The salient dimensions of an entrepreneurial orientation-autonomy,

2 innovativeness, risk taking, proactiveness and competitive
aggressivenessmay vary independently of each other in a given
context.
Propositions

The relationship between EO and firm performance will be

moderated by the use of an organic structure. Firms with an
entrepreneurial orientation that ulse an organic strulctulre will have
3 higher performance relative to those that do not use an organic
structure

The relationship between EO and firm performance will be

4 mediated by the use of integrating activities. Higher performance
compared to those that do not use integrating activities.
Propositions

Both environmental munificence and EO will have an independent

5 effect on organizational performance.

Tolerance for ambiguity and EO will influence organizational

6 performance through their interaction effect.
Propositions

Need for achievement and EO will influence organizational

7 performance through their interaction effect.

"Organicness" will moderate the relationship between

innovativeness and performance: Among firms with high
8 innovativeness, greater "organicness" will be associated with higher
performance
Propositions

"Organicness" will moderate the relationship between competitive

9 aggressiveness and performance.

A quick-response strategy will moderate the relationship between

proactiveness and performance: Among firms that are highly
10 proactive, a quick-response strategy will be associated with higher
performance.

A quick-response strategy will moderate the relationship between

innovativeness and performance: Among firms that are highly
11 innovative, a quick-response strategy will be associated with lower
performance.
Implications for research and practice

Combination of the five dimensions:

Autonomy, Innovativeness, Risk taking,
Proactiveness, and Competitive
What makes a firm Aggressiveness
entrepreneurial?" Source of competitive advantage or strategic
renewal,
An effective EO may be an example of good
strategic management
Implications for research and practice

EO associated with performance when it is combined with both the appropriate strategy
and the proper environmental conditions.
Furthermore, researchers should investigate the processes through which entrepreneurial
behavior enhances a firm's competitive position and performance.
Additional insights can be gained by exploring configurations among an EO and other key
constructs.
CONCLUSION
Exploring relationships between entrepreneurial behavior and performance is very timely
Clarify, through theory, the multidimensional nature of the EO.
Propositions of alternative contingency models that can provide additional insight into the
EO-performance relationship.
THANK YOU!
COMPARISON AND
DISCUSSION
STRENGHTS AND WEAKNESSES
FUTURE RESEARCH LINES
Paper 1: How the adoption of strategic management practices influence the
organization performance of small firms in high technology industry( where know-how and
knowledge exchange are key factors) in a hostile environment. Internal strategy and
company motivation incentives and motivation drivers.
Paper 2: Besides dimensions associated to entrepreneurial orientation, how environmental
and organizational factors are related with a firm performance, considering internal
performance factors such as sales, profits, market share and others.