In this paper, we explore the role of managerial attribution on changes in CE. Specifically, we look at how a manager attributes past performance and how it impacts subsequent CE behavior. Previous research into the link between performance and entrepreneurial activities such as R&D spending has tended to assume a linear and positive relationship (Hall, 1992; Himmelberg, & Petersen, 1991; Bougheas, Görg & Strobl, 2003), especially in high tech firms. However, R&D spending has also been shown to fluctuate over time and sometimes without regard to previous performance (Cuervo-Cazurra & Un, 2010; Filatotchev & Piesse, 2009; Levesque et al., 2012). We argue that how managers attribute past performance will affect their future investments into CE activities. More specifically, the extent to which managers attribute performance to the firm itself have differential investments in CE than those who attribute performance to competitive pressures or environmental uncertainties.