Lumpkin and Dess (1996) theorize the launching of new ventures to constitute the principal defining outcome of an EO. However, to date the major concern for previous research has been the relationship between EO and performance without consideration of the causal mechanism of how the processes, practices, and decision-making activities associated with an EO are linked to performance. In this paper, we posit the launching of new market entries to constitute an explanatory, mediating influence in the relationship between EO and firm performance.