The Effect of Future Orientation on Entrepreneurship and the Moderating Role of Competitive Intensity in ICT Industry

Document Type : علمی - پژوهشی

Authors

1 - Assistant Professor of Strategic Management, Institue for Humanities and Cultural Studies, Corresponding author

2 Assistant professor, Faculty of Management, Kharazmi University

10.52547/jbmp.19.43.150

Abstract

Purpose: Several studies have shown that entrepreneurial orientation has a significant effect on firms’ performance. Therefore, during the past decades, business scholars have paid more attention to this subject, and several studies have been done on the antecedents of entrepreneurial orientation. The various dimensions of strategic orientations are among the variables that can be investigated as the antecedents of entrepreneurial orientation. The purpose of the present study was to investigate the relationship between futurity and entrepreneurial orientation. The effect of the competitive intensity in moderating this relationship was also studied.
Methodology: The population consisted of the companies which were active in the information and communication technology sector. A questionnaire was distributed among the executives of these firms. Finally, 124 questionnaires were collected. The variance-based structural equation modeling technique was used to analyze data. Smart PLS3 was the software through which the analysis was done.
Findings: The results showed that futurity has a positive effect on entrepreneurial orientation. The effect of competitive intensity in moderating this relationship was also confirmed.
Results: The more future-oriented the ICT companies are, the more entrepreneurial they will be. Moreover, the more the companies in various ICT sub-industries perceive competitive intensity, the more the effect of future-orientation on entrepreneurship will be.

Keywords

References

  1. Anderson, B. S. & Eshima, Y. (2013). The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing, 28(3), 413-429.
  2. Anderson, B. S., Kreiser, P. M., Kuratko, D. F., Hornsby, J. S., & Eshima, Y. (2015). Reconceptualizing entrepreneurial orientation. Strategic management journal, 36(10), 1579-1596.
  3. Arzubiaga, U., Maseda, A., and Iturralde, T. (2019), “Entrepreneurial orientation in family firms: New drivers and the moderating role of the strategic involvement of the board”, Australian Journal of Management, Vol. 44 No. 1, 128-152.
  4. Auh, S., & Menguc, B. (2005). Balancing exploration and exploitation: The moderating role of competitive intensity. Journal of business research, 58(12), 1652-1661.
  5. Baker, W. E., Sinkula, J. M., (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of Small Business Management, 47, 443–464.
  6. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120.
  7. Burgelman, R. A. (1983). Corporate entrepreneurship and strategic management: Insights from a process study. Management science, 29(12), 1349-1364.
  8. Covin, J. G. & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10, 75–87.
  9. Covin, J. G. & Slevin, D. P. (1998). The influence of organization structure on the utility of an entrepreneurial top management style. Journal of Management Studies, 25(3), 217–234.
  10. Covin, J. G., & Wales, W. J. (2019). Crafting High-Impact Entrepreneurial Orientation Research: Some Suggested Guidelines. Entrepreneurship: Theory and Practice, 43(1), 3–18. https://doi.org/10.1177/1042258718773181.
  11. Czarniawska, B. (1998). A narrative approach to organization studies. Thousand Oaks (CA): Sage Publications.
  12. Eddleston, K. A., Kellermanns, F. W., and Zellweger, T. M. (2012), “Exploring the entrepreneurial behavior of family firms: Does the stewardship perspective explain differences?”, Entrepreneurship Theory and Practice, Vol. 36 No. 2, pp.347-367.
  13. Eldor, L. (2020). How collective engagement creates competitive advantage for organizations: A business‐level model of shared vision, competitive intensity, and service performance. Journal of Management Studies, 57(2), 177-209.
  14. Feng, T., Wang, D., Lawton, A., & Luo, B. N. (2019). Customer orientation and firm performance: The joint moderating effects of ethical leadership and competitive intensity. Journal of Business Research, 100, 111-121.
  15. Foss, K., Foss, N. J., Klein, P. G., & Klein, S. K. (2007). The entrepreneurial organization of heterogeneous capital. Journal of Management studies, 44(7), 1165-1186.
  16. Gentry, R., Dibrell, C., and Kim, J. (2016), “Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic”, Entrepreneurship Theory and Practice, Vol 40 No. 4, pp. 733-757.
  17. He, W., & Nie, M. (2008). The impact of innovation and competitive intensity on positional advantage and firm performance. Journal of American Academy of Business, 14(1), 205-209.
  18. Heidari, A., & Kalali, N. S. (2016). Presenting a Model of Competitive Advantage of Management Consulting Firms Based on Dynamic Capability Theory. Journal of Business management, 8(2), 317-338 (in Persian).
  19. Hernández‐Carrión, C., Camarero‐Izquierdo, C., & Gutiérrez‐Cillán, J. (2017). Entrepreneurs' social capital and the economic performance of small businesses: The moderating role of competitive intensity and entrepreneurs' experience. Strategic Entrepreneurship Journal, 11(1), 61-89.
  20. Hernández-Linares, R., and López-Fernández, M. C. (2018), “Entrepreneurial orientation and the family firm: Mapping the field and tracing a path for future research”, Family Business Review, Vol. 31 No. 3, pp. 318-351.
  21. Hitt, M. A., Ireland, R. D., Camp, S. M., & Sexton, D. L. (2001). Strategic entrepreneurship: Entrepreneurial strategies for wealth creation. Strategic management journal, 22(6‐7), 479-491.
  22. Hoffmann, C., Wulf, T., and Stubner, S. (2016). “Understanding the performance consequences of family involvement in the top management team: The role of long-term orientation”, International Small Business Journal, Vol. 34 No. 3, pp. 345-368.
  23. Hunt, R. A. (2021). Entrepreneurial orientation and the fate of corporate acquisitions. Journal of Business Research, 122, 241-255.
  24. Ireland, R. D., & Webb, J. W. (2007). Strategic entrepreneurship: Creating competitive advantage through streams of innovation. Business horizons, 50(1), 49-59.
  25. Jaworski J. J., Kohli A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57(3): 53–70.
  26. Johnson, J. L., Martin, K. D., Saini, A., (2012). The role of a firm's strategic orientation dimensions in determining market orientation. Industrial Marketing Management. 41 (4), 715–724.
  27. Kalali, N. S. & Heidari, A. (2016a). How was competitive advantage sustained in management consultancies during change. Journal of Organizational Change Management, 29(5), 661-685.
  28. Kalali, N. S., & Heydari, E. (2016b). The Relationship between Top Managers’ Strategic Thinking Capability and Firm’s Entrepreneurial Orientation. 4th International Conference on Strategic Management. 559-582.
  29. Khodadadi, M. R., Motefakeri, H., Soleimani, B. (2019). The Effect of Individual Entrepreneurial Orientation (IEO) and entrepreneurial intention and self- fulfillment with the mediating role of entrepreneurial skills. Applied Research of Sport Management, 8(3), 37-47 (in Persian).
  30. Kim, W. C., & Mauborgne, R. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press.
  31. Kim, W. C., & Mauborgne, R. (2017). Blue ocean shift: Beyond competing-proven steps to inspire confidence and seize new growth. Hachette UK.
  32. Le Breton-Miller, I. and Miller, D. (2006). Why do some family businesses outcompete? Governance, long-term orientations and sustainable capability. Entrepreneurship Theory and Practice, 30, 731–46.
  33. Lee T., and Chu, W. (2013). How entrepreneurial orientation, environmental dynamism, and resource rareness influence firm performance. Journal of Management & Organization, 19, 167-187.
  34. Lumpkin, G. T. & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21, 135–172.
  35. Lumpkin, G. T., Brigham, K. H., and Moss, T. (2010), “Long-term orientation: Implications for the entrepreneurial orientation and performance of family businesses”. Entrepreneurship and Regional Development, Vol. 22 No. 3, pp. 1–24.
  36. Martin, S. L., & Javalgi, R. R. G. (2016). Entrepreneurial orientation, marketing capabilities and performance: the moderating role of competitive intensity on Latin American International new ventures. Journal of Business Research, 69(6), 2040-2051.
  37. Miles, R. E. & Snow, C. C. (1978). Organizational strategy, structure, and process. New York (NY): McGraw-Hill.
  38. Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29, 770–791.
  39. Miller, D. (2011), “Miller (1983) revisited: A reflection on EO research and some suggestions for the future”. Entrepreneurship Theory and Practice, Vol. 35 No. 5, pp. 873–894.
  40. Miller, D., & Xu, X. (2020). CEO long-term orientation and elite university education. Strategic Organization, 18(4), 520-546.
  41. Morgan, R. E., & Strong, C. A. (1998). Market orientation and dimensions of strategic orientation. European Journal of Marketing,32, 1051–1073.
  42. Morgan, R. E., & Strong, C. A. (2003). Business performance and dimensions of strategic orientation. Journal of Business Research,56, 163–176.
  43. Mozafari, M., Ajli, M., Garmehee, R. (2019). The Relationship between entrepreneurial orientation, marketing capability and company's performance with the moderating role of competition intensity in the field of information and communication technology. Journal of BI Management Studies, 27(7), 59-102. (in Persian).
  44. Nakku, V. B., Agbola, F. W., Miles, M. P., & Mahmood, A. (2020). The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective. Journal of Small Business Management, 58(1), 2-31.
  45. Pirayesh, R., Amiri, V., Jafari, M., Barandagh, M.I. (2018). The Effect of Organizational Entrepreneurship and Entrepreneurship Orientation on Organizational Performance with Regard to Strategic Entrepreneurship in Industrial Companies in Zanjan Province. Productivity Management, 52(1).23-45. (in Persian).
  46. Porter, M. E. (1980). Competitive strategy. New York (NY): Free Press.
  47. Rauch, A., Wiklund, J., Lumpkin, G. T., Frese, M. (2009). Entrepreneurial orientation and business performance: an assessment of research and suggestions for the future. Entrepreneurship Theory and Practice,33, 761–787.
  48. Rumelt, R. P. (2011). Good strategy, bad strategy: The difference and why it matters. New York: Crown Business.
  49. Schumpeter, J. A. (1982). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (1912/1934). Transaction Publishers, 244.
  50. Shams, SH., Yahyazadeh,M., Shabani, M. (2015). Investigating the relationship between the intensity of competition in the product market and momentum Price on the cost of capital of companies. Journal of Empirical Research in Accounting, 24(6),237-254 (in Persian).
  51. Simon, M., & Shrader, R. C. (2012). Entrepreneurial actions and optimistic overconfidence: The role of motivated reasoning in new product introductions. Journal of Business Venturing, 27(3), 291-309.
  52. Slater, S. F., & Narver, J. C. (1994). Does competitive environment moderate the market orientation-performance relationship? Journal of marketing, 58(1), 46-55.
  53. Stokvik, H., Adriaenssen, D. J., & Johannessen, J. A. (2016). Strategic entrepreneurship and intrapreneurial intensity. Problems and Perspectives in Management, 14(2), 348–359.
  54. Swedberg, R. (2013). Joseph A. Schumpeter: his life and work. John Wiley & Sons.
  55. Taoketao, E., Feng, T., Song, Y., & Nie, Y. (2018). Does sustainability marketing strategy achieve payback profits? A signaling theory perspective. Corporate Social Responsibility and Environmental Management, 25(6), 1039-1049.
  56. Teece D.J. (2016) Theory of the Firm. In: Augier M., Teece D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London.
  57. Titus, V., Parker, O., & Covin, J. (2019). Organizational Aspirations and External Venturing: The Contingency of Entrepreneurial Orientation. Entrepreneurship: Theory and Practice. https://doi.org/10.1177/1042258719838473.
  58. Todorovic, Z. W., Todorovic, D., &Ma, J. (2015). Corporate entrepreneurship and entrepreneurial orientation in corporate environment: A discussion. Academy of Entrepreneurship Journal, 21(1), 82–92.
  59. Tseng, C. Y. (2020). Family firms and long-term orientation of SG&A expenditures. Review of Quantitative Finance and Accounting, 1-26.
  60. Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management Science, 35(8), 942–962.
  61. Wales, W. J. (2016). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3–15.
  62. Wales, W. J., Covin, J. G., & Monsen, E. (2020). Entrepreneurial orientation: The necessity of a multilevel conceptualization. Strategic Entrepreneurship Journal, 14(4), 639-660.
  63. Wetzel, H. A., Hammerschmidt, M., & Zablah, A. R. (2014). Gratitude versus entitlement: A dual process model of the profitability implications of customer prioritization. Journal of Marketing, 78(2), 1-19.
Journal of Business Management Perspective
Volume 19, Issue 43 - Serial Number 43
October 2020
Pages 150-170

Files

History

  • Receive Date: 04 October 2020
  • Revise Date: 17 February 2021
  • Accept Date: 17 February 2021

Share

How to cite

Statistics