Exploring EO strategic performance measures: value-added versus efficiency outcomes

Robert Newbery*, Stephen Roderick, Johannes Sauer, Matthew Gorton, Keith Robbins

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
32 Downloads (Pure)


Research on Entrepreneurial Orientation (EO) seeks to understand the EO-Performance relationship. However, at a strategic level, performance relates to a competitive advantage and comprises both value-added and efficiency measures. Following arguments that performance is context and strategy dependent, the paper argues that EO research needs to clarify and specify the type of performance relationship measured.

To explore the EO-Performance relationship, the research considers the agricultural sector where policy has traditionally encouraged the maximisation of efficiency in production and has only recently promoted entrepreneurship, providing fertile ground to explore different approaches to measuring performance. A survey collected detailed accounting records and context specific EO for 282 commercial farms. We estimate two models (Heckman selection regression and stochastic production frontier) that examine the relationships between EO and value-added / efficiency performance outcomes.

The analysis confirms the EO-value-added performance relationship, with significant positive relationships for the EO components proactiveness and innovativeness and a negative relationship for risk. No EO-efficiency performance relationship was found, despite a robust analysis of technical efficiency using detailed accounting data.

The paper contributes to EO theory by problematizing performance and highlighting the importance of the type of performance measured. It contributes empirically with findings relating to a mature industry, and it contributes to entrepreneurship methodology by outlining how EO-performance relationships can be measured in terms of productivity and technical efficiency.
Original languageEnglish
Pages (from-to)1027-1049
Number of pages23
JournalInternational Journal of Entrepreneurial Behavior and Research
Issue number4
Early online date21 Apr 2023
Publication statusPublished - 4 May 2023

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