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.