Abstract

Since the 1970s researchers have been theorizing about firm-level entrepreneurship and its relationship to organizational performance. In this paper, we aim at advancing the body of literature focusing on the conceptualization of the firm-level entrepreneurship construct itself. We draw on previous literature stating that the most commonly used entrepreneurship scale based on Miller (1983) just measures disposition towards, rather than actual involvement in entrepreneurial activity. Entrepreneurial posture that is not converted into appropriate action might reduce the explanatory power of the firm-level entrepreneurship-performance relationship. Hence, we examine both a classical direct orientation-performance model and an indirect model that separately links salient elements of an entrepreneurial organization to exploratory and exploitative innovation reflecting actual entrepreneurial behavior and the latter to organizational performance.

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