Abstract

In this paper we help fill a gap in the literature on the relationship between entrepreneurial orientation (EO) and firm performance. Compared to prior studies our paper examines whether and to what extent the change in EO over time influence firm performance. In order to address this issue we draw on survey data where firms have been administered a questionnaire at two points in time matched with official firm register data about survival and exit in Norway. Regression analysis with control for selection bias is used to examine the relationship between EO and firm performance. Our results show that the firms initial EO at Time period 1, as well the change in EO over time, influence firm performance in Time period 2. Overall, this paper contributes to the literature by incorporating a dynamic perspective on the relationship between EO and firm performance.

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