The Entrepreneurial Orientation-Dominant Logic-performance relationship in new ventures: An exploratory quantitative study

Abstract

Entrepreneurial Orientation (EO) has received substantial conceptual and empirical attention, representing one of the few areas in entrepreneurship research in which a cumulative body of knowledge is developing. Nonetheless, an important message from past research is that simply examining the direct effect of EO on firm performance provides an incomplete picture, especially in the case of new ventures. This study examined the influence of Dominant Logic (DL) on the relationship between EO and firm performance. Results based on a sample of 149 new manufacturing ventures indicated that DL mediates the EO-performance relationship, and risk taking, aggressiveness and innovativeness had the highest correlations with the internal and external conceptualization of DL. The empirical evidence suggests that new ventures must foster DL implementing appropriate strategic processes in order to maximize the effect of EO on performance. Copyright © 2012 Brazilian Administration Review.