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    Entrepreneurial orientation in dynamic environments: the moderating role of extra-organizational advice

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    Publication date
    2016
    Author
    Adomako, Samuel
    Narteh, B.
    Danquah, Joseph K.
    Analoui, Farhad
    Keyword
    Entrepreneurial orientation; Dynamic environments; Firm performance; Moderator; Extra-organizational advice.
    Rights

    © 2016 Emerald. Reproduced in accordance with the publisher's self-archiving policy.
    Peer-Reviewed
    yes
    
    Metadata
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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. The paper derives insights from the absorptive capacity and contingency perspectives to introduce extraorganizational 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 extraorganizational 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 design to examine the causal links of the variables. Limitations aside, the study helps to answer 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. The understanding of 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, the present study pioneers research in this area.
    URI
    http://hdl.handle.net/10454/8536
    Version
    Accepted manuscript
    Citation
    Adomako S, Narteh B, Danquah JK, Analoui F (2016) Entrepreneurial orientation in dynamic environments: the moderating role of extra-organizational advice. International Journal of Entrepreneurial Behaviour and Research, 22 (5): 616 - 642.
    Link to publisher’s version
    http://dx.doi.org/10.1108/IJEBR-12-2015-0320
    Type
    Article
    Collections
    Social Sciences Publications

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