The entrepreneurial orientation (EO) construct (Miller, 1983; Covin & Slevin, 1989, 1991) is a commonly used measure to describe how a company makes new entries (Lumpkin & Dess, 1996; Rauch et al. 2009). A new entry requires a value-creating logic that companies use to realize economic value (Chesbrough & Rosenbloom, 2002). We use the concept of business model to describe this logic (Amit & Zott, 2001; Zott & Amit 2006; Osterwalder et al., 2005; Morris et al., 2005). A company’s business model can be shaped by managerial choice, and it affects how the company interacts with its environment.

During recent years, on-demand services (cf. Currie & Seltsikas, 2001; Susarla et al., 2003) have emerged and are changing the competitive landscape of the software industry (Campbell-Kelly & Garcia-Swartz, 2007; IDC, 2005). We hypothesize that due to their higher risk tolerance, innovativeness, and proactiveness, entrepreneurially oriented companies adopt and develop newer and higher risk business models more eagerly than other companies. In addition, we hypothesize that this selection moderates the relationship between EO and performance in the changing business environment (Lumpkin & Dess, 2001).