Resource-Induced Coping Heuristics and Entrepreneurial Orientation in Dynamic Environments

Abstract

Prior studies show the impact of various facets of individual characteristics in driving a firm’s entrepreneurial orientation (EO). The present study complements this line of research by deriving insights from the conservation of resources (COR) theory to examine the effects of resource-induced coping heuristics (acquiring, protecting, and developing resources) on EO. Additionally, it investigates the underlying conditions influencing these relationships. Data were collected from new ventures in two developing countries (Ghana, N=204, and Ethiopia, N=214). Utilizing the moderated hierarchical regression analysis, the results show that the three dimensions of resource-induced coping heuristics positively relate to EO and these relationships are amplified when environmental dynamism is high. These findings provide a nuanced understanding of the relationships among the different types of resource-induced coping heuristics and EO. In this way, the study extends the boundaries of the resource-induced coping heuristics, EO, and broader entrepreneurship literature.