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 ofthe 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 performanceprovides an incomplete picture, especially in the case of new ventures. This study examined the influence ofDominant Logic (DL) on the relationship between EO and firm performance. Results based on a sample of 149new 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 conceptualizationof DL. The empirical evidence suggests that new ventures must foster DL implementing appropriate strategicprocesses in order to maximize the effect of EO on performance.

Keywords

• entrepreneurial orientation
• dominant logic
• performance
• new ventures.