Relationship between entrepreneurial orientation and firm performance in large organizations over time



The purpose of this study is to understand the longitudinal relationship between entrepreneurial orientation and firm performance. The authors obtain objective performance measures from archival sources and construct 10-year panel data from large, publicly traded German firms using letters to shareholders to derive entrepreneurial orientation (EO) information. Unlike prior research, this study measures all variables every year for the sample period. Analyses indicate that EO has a strong initial effect on firm performance and that this effect gradually declines with time. Competitive intensity and demand volatility influence the effect of EO on performance in both the short term and the long term. Implications for research and practice are discussed.


Entrepreneurial orientation Competitive intensity Demand volatility 


Der Zweck dieser Studie ist, die Längsschnittbeziehung zwischen unternehmerischer Ausrichtung (entrepreneurial orientation, kurz EO) und Unternehmensleistung zu verstehen. Die Autoren gewinnen objektive Leistungsmessung aus Archivquellen und erstellen anhand von Briefen an Aktienhabern Paneldaten von vergangen zehn Jahren aus großen, börsennotierten deutschen Unternehmen, um EO-Informationen zu gewinnen. Im Gegensatz zur bisherigen Forschung misst diese Studie alle Variablen jedes Jahr für die Probenzeit. Die Analysen indizieren, dass EO einen starken anfänglichen Einfluss auf die Unternehmensleistung hat und dass sich dieser Effekt allmählich abnimmt. Wettbewerbsintensität und Nachfrageschwankungen beeinflussen die Wirkung von EO auf die Leistung sowohl kurzfristig als auch langfristig. Konsequenzen dessen für Forschung und Praxis werden hier diskutiert.



We thank Editor-in-Chief Hamid Etemad and two anonymous reviewers for feedback and suggestions, which considerably strengthened the manuscript. Previous versions of this manuscript were presented at the 2013 Babson College Entrepreneurship Research Conference and the 2011 RENT Conference, where it benefited from comments provided by the session attendees. Editorial assistance provided by Rupesh Bhardwaj, Lucas Koczian, Elif Yoney, and Nicholas Dorr-Hanss is appreciated. All omissions remain our own.


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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.School of ManagementBinghamton University, State University of New YorkVestalUSA
  2. 2.Lynchburg CollegeLynchburgUSA

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