Abstract

In various studies on entrepreneurial orientation (EO), it has been argued that cultural, economic, political and institutional conditions in which firms operate shape their entrepreneurial behaviors (e.g., Davidsson and Wiklund, 1997; Hansen et al., 2011; Hayton et al., 2002; Lee and Peterson, 2000; Marino et al., 2002). However, the specific role of environmental conditions in the relationship between individual EO dimensions and firm performance remains unclear (Madsen, 2007; Wiklund, 1998).

In the current study, we adopt a multi-dimensional approach and view single dimensions of EO as varying independently from each other (Lumpkin & Dess, 1996). This conceptualization implies that a firm can flexibly adjust its orientation toward innovativeness, risk-taking, and proactiveness and thereby ensure that specific environmental requirements are met. Specifically, we expect that firms in developed markets focus more on innovativeness as opposed to risk-taking and proactiveness, which are more vital in emerging markets.

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