Firm-level entrepreneurship and international performance: A simultaneous examination of orientation and action

Abstract

Relying on the resource-based view and contingency analysis, this study aims to investigate the relationship between firm-level entrepreneurship (FLE) and international performance among Iranian small and medium-sized enterprises (SMEs). The environment is considered as a moderating factor which enables us to discuss the results more precisely. To draw a more holistic picture of entrepreneurship in existing companies, both orientation and action are included in the research model. A survey study of 140 SMEs using a partial least squares structural equation modelling analysis demonstrated a negative effect of entrepreneurial orientation (EO) on international performance, but a positive impact for corporate entrepreneurship (CE). Environmental dynamism (ED) appeared as an insignificant moderator, while environmental hostility (EH) significantly moderated the effect of EO on international performance. The unexpected results of this study, especially in the case of EO, add new insights on the FLE research of smaller companies. When SMEs are performing in a business network, cooperation becomes the priority, and any type of opportunistic behaviour which harms the trust weakens their collective performance.