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Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance

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Abstract

Despite of the importance of entrepreneurial orientation (EO) in international performance, we have yet to obtain sufficient insights into how and why a firm’s EO strengthens international performance. This article focuses on the underlying mechanism through which EO influences international performance, and develops a model of EO → knowledge creation → international venturing, and new product development decision-making flexibility → international performance linkages. Following a survey of 141 Taiwanese electronics firms, the results provide support for our proposed mediating process behind the EO–international performance link. These findings offer several theoretical and practical implications in the entrepreneurship and international business areas.

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Notes

  1. The international sales ratio (sales in the foreign country/total sales of the enterprise) and international sales growth are commonly used as objective measures of international performance in the previous studies (Autio et al. 2000; Dimitratos et al. 2004). Given that only some of our respondent firms belong to listed companies at Taiwan’s stock exchange and reveal these indicators in public, this study adopted another more easily accessible indicator, overall sales growth, to implement our robustness test. Even though this indicator still cannot be obtained for all respondent firms, we collected this indicator for approximately 80% of our respondent firms (111/141) from secondary sources. This produces a more reliable and valid assessment of test for robustness.

  2. https://www.hofstede-insights.com/country-comparison/.

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Acknowledgements

This work was supported by the Ministry of Science and Technology of Taiwan (Grant number 105-2410-H-034-016).

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  1. Department of International Business Administration, College of Business, Chinese Culture University, Taipei, Taiwan

    Yen-Chun Chen

  2. Department of International Business, College of Management, Ming Chuan University, Taipei, Taiwan

    Ya-Hui Lin

  3. Department of Business Administration, College of Business, National Taipei University, Taipei, Taiwan

    Hsien-Tung Tsai

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Chen, YC., Lin, YH. & Tsai, HT. Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance. Manag Int Rev 60, 211–245 (2020). https://doi.org/10.1007/s11575-020-00414-x

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