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Entrepreneurial orientation and social ties in transitional economies

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journal contribution
posted on 2023-06-09, 12:43 authored by Ngoc LuuNgoc Luu, Liem Ngo
Recent research suggests that entrepreneurial orientation (EO) has a more complex effect on performance (i.e. non-linear instead of linear) than previously considered. We extend this view by examining the non-linear effect of each individual dimension of EO (i.e. innovativeness, proactiveness, and risk-taking) on firm performance in the context of a transitional, collectivist economy. Drawing upon social capital theory, we also examine under which social capital conditions (i.e., business and political ties) each dimension of EO is most effective. Using survey data from 137 firms in Vietnam Top 500 Companies, this study shows that innovativeness and proactiveness have inverted U-shaped relationships with firm performance, while the effect of risk-taking on firm performance is also non-linear but in the form of increasing returns. Findings also show that social capital from business ties differentially moderates the effects of EO dimensions on performance. Similarly, social capital from political ties has different moderating effects on the innovativeness-performance and proactivenessperformance linkages. The findings urge managers of firms operating in transitional economies to take the levels of social capital from business ties and political ties into consideration when making their decision on which entrepreneurial strategy to pursue.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Long Range Planning

ISSN

0024-6301

Publisher

Elsevier

Issue

1

Volume

52

Page range

103-116

Department affiliated with

  • Strategy and Marketing Publications

Research groups affiliated with

  • Marketing Innovation Research Group Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2018-04-05

First Open Access (FOA) Date

2020-04-07

First Compliant Deposit (FCD) Date

2018-04-04

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