Entrepreneurial orientation in a hostile and turbulent environment: Risk and innovativeness among successful Russian entrepreneurs

Abstract

Applying the construct of entrepreneurial orientation (EO) we test the relationship between the dimensions of entrepreneurial risk taking and innovativeness. Risk taking is measured as an entrepreneurial propensity as well as a behaviour. Innovativeness is manifested in decisions for strategic growth, specifically strategies of vertical integration and horizontal diversification. The study context is the turbulent and hostile environment of Russia, focusing on 158 successful entrepreneurs and their firms, and extending the EO construct beyond the more positive set of circumstances as found in developed economies. Results show that both operationalisations of risk are significantly related to firm innovativeness, and are generally counter-intuitive to what might be found in a more stable environment of developed economies like the USA and Western Europe.