Entrepreneurial Orientations and Performance: A Problematic Explanatory Approach in the Iranian Knowledge-Based Industry

Abstract

This study aims to thoroughly investigate how the different dimensions of entrepreneurial orientation (EO) influence firm performance in the Iranian knowledge-based industry. An empirical analysis of data from 155 Iranian knowledge-based firms was performed by employing the PLS method of structural equation modelling. Findings show that there is semantic redundancy among the different dimensions of EO. Specifically, just two of the five dimensions, proactiveness and risk-taking, could account for all the effects of EO on firm performance in the context of the Iranian knowledge-based industry. In addition, moderation, spuriousness, suppression of industrial contingencies and control variables were not at play. From a theoretical point of view, our work confirms that scholars should avoid considering EO as a holistic gestalt in different contexts. It also highlights that proactiveness and risk-taking are the orientations with the strongest effects on performance in Iranian knowledge-based firms. From an empirical point of view, our study sheds light on the importance of these two specific EO dimensions in the selection of human resources and in the development of policies aimed at fostering sustainability of knowledge-based firms. In addition, it represents a contribution to understanding how EO dimensions work in emerging countries, characterised by social and economic systems different from those of the Western world.