Entrepreneurial orientation and new venture resource acquisition: why context matters

Date

2020-05-01

Advisors

Journal Title

Journal ISSN

ISSN

0217-4561

Volume Title

Publisher

Springer

Type

Article

Peer reviewed

Yes

Abstract

Resource acquisition is vital for new venture survival and growth. However, surprisingly little is known about how the entrepreneurial orientation (EO) of the new venture affects its resource acquisition. Drawing on the resource-based view of the firm, we articulate a theory and treatment of EO that address this oversight and remedy for the routine absence of context among studies of EO. Accounting for the simultaneous effect of environmental dynamism and an opportunistic orientation (OO), a tendency among Chinese new ventures to imitate technology and profit through market information asymmetry, as important contextual variables reflecting the Chinese business context, we provide insights on the contingency effects of contextual variables. Results from a quantitative study of 361 Chinese new ventures show that EO positively influences resource acquisition. However, this relationship is context sensitive. In a low dynamic environment, OO negatively moderates this relationship. However, in a highly dynamic environment, OO exhibits no effect on the relationship between EO and new venture resource acquisition. Our results contribute to a resource-based theory of EO and reveal its context sensitivity. Our study is a step in moving the scholarship of EO forward and away from the performance debate towards greater predictive accuracy of EO and its systems of effects.

Description

open access article

Keywords

Entrepreneurial orientation, Opportunistic orientation, Entrepreneurial orientation, Resource acquisition, Environmentaldynamism, Resource-basedview, China, Newventures, Context, Theory of the firm

Citation

Yin, M., Hughes, M. & Hu, Q. (2020) Entrepreneurial orientation and new venture resource acquisition: Why context matters. Asia Pacific Journal of Management,

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)