Entrepreneurial orientation and firm performance in Italian firms: The moderating role of competitive strategy. Issue 4 (26th February 2020)

• Record Type: Journal Article
• Authors: Galbreath, Jeremy; Lucianetti, Lorenzo; Thomas, Ben; Tisch, Daniel
• Is Part Of: International journal of entrepreneurial behaviour & research. Volume 26:Issue 4(2020)
• Page Start: 629
• Page End: 646
• Publication Date: 2020-02-26
• Subjects: Entrepreneurship -- Entrepreneurial orientation -- Competitive strategy -- Firm performance -- Moderation -- Strategy; Entrepreneurship -- Periodicals; Small business -- Periodicals; 338.04
• DOI: 10.1108/IJEBR-07-2019-0457
• Languages: English
• ISSNs: 1355-2554

Abstract

Abstract : Purpose: Considering that context is important and relying on a contingency perspective, the purpose of the study is to analyze the relationship between an entrepreneurial orientation (EO) and firm performance in one of the world's oldest economies: Italy. The contingency perspective relies on competitive strategy as a moderating variable. Design/methodology/approach: Using a mix of primary and secondary data sources, relationships are explored in a sample of 229 Italian for-profit firms. Moderated regression analysis is used for the sample and additional tests are conducted by firm size groupings. Findings: The analysis suggests that an EO is positively associated with firm performance in the sample firms. Further, competitive strategy acts as a moderating influence: a low-cost strategy negatively influences the relationship, while a differentiation strategy positively influences the relationship. The firm size groupings do not appear to affect the results. Research limitations/implications: The study examines only for-profit firms in a single country, Italy; therefore, generalizability is limited. The results must be interpreted in light of these limitations. Originality/value: This study contributes to the entrepreneurship literature by considering a relatively new international context in the EO–firm performance relationship. Further, a new contingency perspective is advanced by considering competitive strategy. In doing so, this study extends an understanding of the conditions under which an EO might be associated with firm performance.