Entrepreneurial Orientation and Learning in High and Low Performing SMEs
This paper examines the relationship between an organization’s learning orientation, its information technology competency and entrepreneurial orientation. It is proposed that a commitment to learning and a culture of learning coupled with the tools and capabilities to gather and compile information and knowledge from outside organizational boundaries facilitates the identification of opportunities. Small and medium-sized firms with high levels of an entrepreneurial orientation in turn are able to capitalize on opportunities yielding higher performance levels for the firm. Data from a sample of manufacturing SMEs tends to support these propositions. Conclusions and recommendations for SME management practice is discussed.
Argyris, C. and Shön, D. (1978). Organizational Learning: A Theory in Action Perspective. New York: Addison-Wesley.
Baker, W.E. and Sinkula, J.M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27(4): 411-427.
Barney, J.B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17: 99-120.
Bharadwaj, A.S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1): 169-196.
Brettel, M and Rottenberger, J. (2013). Examining the Link between Entrepreneurial Orientation and Learning Processes in Small and Medium-Sized Enterprises. Journal of Small Business Management, 51(4): 471–490.
Brockhaus, R. (1980). Risk taking propensity of entrepreneurs. Academy of Management Journal, 23 (4): 509-520.
Busenitz, L. (1999). Entrepreneurial risks and strategic decision making. The Journal of Applied Behavioral Science, 35(3): 325-340.
Cameron, K. (1978). Measuring organizational effectiveness in institutions of higher education. Administrative Science Quarterly, 23: 604-632.
Celuch, K., Bourdeau, B., Saxby, C. and Ehlen, C. (2014). SME Internet Use: The Moderating Role of Normative Influence. Journal of Small Business Strategy, 24(2): 69-90.
Chandler, G. and Hanks, S. (1994). Market attractiveness, resource-based capabilities, and venture performance. Journal of Business Venturing, 9:331-349.
Chakravarthy, B. (1986). Measuring strategic performance. Strategic Management Journal, 6: 437-458.
Covin, J.G. and Miles, M.P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23(3): 47-63.
Covin, J.G. and Slevin, D.P (1986). The development and testing of an organizational-level entrepreneurship scale. In Ronstadt, R., Hornady, J.A., Peterson, R. & Yesper, K.H. (Eds) Frontiers of Entrepreneurship Research 1986. Wellesley, MA: Babson College, 628-639.
Covin, J.G. and Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10: 75-87.
Covin, J.G. and Slevin, D.P. (1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice, 16(1): 7-24.
Covin, J.G., Green, K.M. and Slevin, D.P. (2006). Strategic process effects on the entrepreneurial orientation-sales growth rate relationship. Entrepreneurship Theory and Practice, 30(1): 57-81.
Davenport, T.H., DeLong, D.W., and Beers, M.C. (1998). Successful knowledge management projects. Sloan Management Review, winter: 43-57.
Dutta, D.K. and Crossan, M.M. (2005). The nature of entrepreneurial opportunities: Understanding the process using the 4I organizational learning framework, Entrepreneurship. Entrepreneurship Theory and Practice, 29(4): 425-449.
Fiol. C.M. and Lyles, M.A. (1985). Organizational learning. Academy of Management Review, 10: 803-813.
Freeman, J., Carroll, G.R. and Hannan, M.T. (1983). The liability of newness: Age dependence in organizational death rates. American Sociological Review, 48(5): 692-710.
Granstrand, O. (1982). Technology, Management, and Markets. St. Martin’s Press: New York.
Hambrick, D., Geletkanycz, M. and Fredrickson, J. (1993). Top executive commitment to the status quo: Some tests of its determinants. Strategic Management Journal, 14(6): 401-418.
Ireland, R.D. and Hitt, M.A. (1999). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy of Management Executive, 13(1): 43-57.
Lee, C., Lee, K. and Pennings, J.M. (2001). Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22: 615-640.
Lei, D., Hitt, M.A. and Bettis, R. (1996). Dynamic core competencies through meta-learning and strategic context. Journal of Management, 22(4): 549-569.
Lonial, S. and Carter, R. (2013). The Impact of Organizational Orientations on Medium and Small Firm Performance: A Resource-Based Perspective. Journal of Small Business Management, 53 (1), 94-113.
Lucas, H.C. (1999). Information Technology and the Productivity Paradox. Oxford University Press: New York.
Lumpkin, G.T. and Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1): 135-172.
Lumpkin, G.T. and Dess, G.G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16: 429-451.
Lumpkin, G.T. and Lichtenstein. B.B. (2005). The role of organizational learning in the opportunity recognition process. Entrepreneurship Theory and Practice, 29(4): 451-472.
Martin, W.J. (1988). The Information Society. Easter Press: London.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29: 770-791.
Moingeon, B. and Edmundson, A. (Eds.) (1996). Organizational Learning and Competitive Advantage. London: Sage Publications.
Morgan, G. (1986). Images of Organization. Beverly Hills, CA: Sage.
Peters, T. and Waterman, R. (1982). In Search of Excellence. New York: Harper & Row.
Pickering, J. M. and King, J.L. (1995). Hardwiring weak ties: Interorganizational computer-mediated communication, occupational communities, and organizational change. Organization Science, 6(4): 479-486.
Porter, M. (1980). Competitive Strategy. New York: Free Press.
Richard. O.C., Barnett, T., Dwyer, S., and Chadwick, K. (2004). Cultural diversity in management, firm performance, and the moderating role of entrepreneurial orientation dimensions. Academy of Management Journal, 47(2): 255-266.
Schumpeter, J.A. (1934). The Theory of Economic Development. Cambridge, MA: Harvard University Press.
Senge, P.M. (1990). The Fifth Discipline: The Art and Practice of the Learning Organization. Doubleday: New York.
Shane, S. and Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1): 217-226.
Sinkula, J.M., Baker, W.E. and Noordewier, T (1997). A framework for market-based organizational learning: Linking values, knowledge and behavior. Journal of the Academy of Marketing Science, 25(4): 305-318.
Shapiro, S.S. and Wilk, M.B. (1965). An analysis of variance test for normality (complete samples). Biometrika 52: 591-611.
Thornhill, S. (2006). Knowledge, innovation and firm performance in high- and low-technology regimes. Journal of Business Venturing, (21) 5: 687- 703.
Tippins, M.J. and Sohi, R.S. (2003). IT competency and firm performance: Is organizational learning a missing link? Strategic Management Journal, 24(8): 745-761.
Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management Science, 35: 942-962.
Vora, D., Vora, J., and Polley, D. (2012). Applying entrepreneurial orientation to a medium sized firm. International Journal of Entrepreneurial Behaviour & Research, 18(3): 352-379.
Wang, C.L. (2008). Entrepreneurial orientation, learning orientation, and firm performance. Entrepreneurship Theory and Practice, 32(4): 635-657.
Wiklund, J. (1999). The sustainability of the entrepreneurial orientation-performance relationship. Entrepreneurship Theory and Practice, 24(1): 37-48.
Wiklund, J. and Shepard, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium sized businesses. Strategic Management Journal, 24: 1307-1314.
Wolff, J. and Pett, T. and Ring, K. (2015) Small firm growth as a function of both learning orientation and entrepreneurial orientation: An empirical analysis. International Journal of Entrepreneurial Behavior & Research, 21(5): 709 – 730.
Zahra, S. and Covin, J. (1995). Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of Business Venturing, 10:43-58.
Zahra, S.A. and George, G. (2000). Manufacturing strategy and new venture performance: A comparison of independent and corporate ventures in the biotechnology industry. The Journal of High Technology Management Research, 10(2): 313-345.