Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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.
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
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 language | English |
|---|---|
| Pages (from-to) | 1027-1049 |
| Number of pages | 23 |
| Journal | International Journal of Entrepreneurial Behavior and Research |
| Volume | 29 |
| Issue number | 4 |
| Early online date | 21 Apr 2023 |
| DOIs | |
| Publication status | Published - 4 May 2023 |
Keywords
- Entrepreneurial orientation
- Performance
- Effectiveness
- Technical efficiency
- Agriculture