Entrepreneurial orientation and social ties in transitional economies

Luu, Ngoc and Ngo, Liem (2019) Entrepreneurial orientation and social ties in transitional economies. Long Range Planning, 52 (1). pp. 103-116. ISSN 0024-6301

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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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Strategy and Marketing
Research Centres and Groups: Marketing Innovation Research Group
Subjects: H Social Sciences > HF Commerce > HF5001 Business
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Depositing User: Ngoc Luu
Date Deposited: 05 Apr 2018 10:38
Last Modified: 07 Apr 2020 01:00
URI: http://sro.sussex.ac.uk/id/eprint/74830

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