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Entrepreneurial orientation in dynamic environments: the moderating role of extra-organizational advice
Adomako, Samuel Narteh, B. Analoui, Farhad
Adomako, Samuel
Narteh, B.
Analoui, Farhad
Publication Date
2016
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c 2016 Emerald. Reproduced in accordance with the publisher's self-archiving policy.
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Abstract
Purpose: Research on entrepreneurial orientation (EO) has concluded a positive link between EO and firm performance, and that relationship depends on several contingencies. This paper derives insights from absorptive capacity and contingency perspectives to introduce extra?organizational advice as a moderator of the relationship between EO and firm performance in a dynamic environment.
Design/methodology/approach Using survey data from 340 small and medium?sized enterprises (SMEs) in Ghana, the study examines the moderating influence of extra?organizational advice on the EO firm performance relationship in dynamic environments.
Findings: The study's empirical findings suggest that extra?organizational advice amplifies the EO performance relationship in dynamic environments.
Research limitations/implications. The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal designs to examine the causal links among the variables. Limitations aside, the study helps to explain how extra?organizational advice translates EO into improved performance in an environment characterised by constant flux.
Practical implications: The results of this paper can assist entrepreneurs and policy makers in understanding the dynamics and processes involved in implementing a strategic orientation to achieve higher performance. For SME managers, firm performance is determined by high levels of EO and extra?organizational advice in dynamic environments. Understanding this issue can promote the development and maintenance of entrepreneurial ventures.
Originality/value: The paper examines an important but under?researched issue: the moderating effect of extra?organizational advice on the EO performance relationship in dynamic environments. To the best of the authors' knowledge, this study pioneers research in this area.
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Citation
Adomako S, Narteh B, Danquah JK et al(2016) Entrepreneurial orientation in dynamic environments: the moderating role of extra-organizational advice. International Journal of Entrepreneurial Behaviour and Research. 22(5): 616-642.
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