Entrepreneurial activity is related to economic growth across various countries. There is, however, little knowledge about whether the same activities relates to success within different countries. Some scholars argued that entrepreneurial activities have to be adapted to the cross-national context. Other scholars argued for cross-national similarities because economic forces are universally important. Following the latter argument, we hypothesize that the same stet of entrepreneurial activities is related to firm performance in similar ways in China and in Germany.
We look analogue to the strategic content-process distinction at two concepts: Innovation and entrepreneurial orientation (EO). Both address firm-level variables, are conceptualized as cultural universals, and have been validated frequently. Moreover, meta-analyses showed that innovation and EO are related to venture performance. However, reported effect sizes were heterogeneous indicating the presence of moderators. This study contributes to the literature by hypothesizing that innovation and EO are positively correlated with each other and with business performance. Moreover, the interaction between innovation and EO explains more variance of performance than each concept alone.
Rauch, Andreas; Frese, Michael; Wang, Zhong-Ming; and König, Christine
"A UNIVERSAL CONTINGENCY APPROACH: INNOVATION, ENTREPRENEURIAL ORIENTATION AND PEFORMANCE IN CHINESE AND GERMAN ENTREPRNEURS (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 26
, Article 9.
Available at: http://digitalknowledge.babson.edu/fer/vol26/iss22/9