A hierarchical perspective of the dimensions of entrepreneurial orientation

• DOI: 10.1007/s11365-008-0097-9
• Publication Date: 2008-08-25T10:20:42Z
• Authors: Zhi Tang; Patrick M. Kreiser; Louis Marino; Pat Dickson; K. Mark Weaver
• Keywords: Entrepreneurial Orientation

This study examines the hierarchical relationship between the three dimensions of entrepreneurial orientation (EO): proactiveness, innovativeness, and risk-taking. Information Processing Theory and Strategic Choice Theory were utilized to investigate the roles of both industrial munificence and opportunity perceptions in the formation of firm-level EO. Data collected from 227 organizations in four countries suggests that innovative and risk-taking behaviors are fundamentally driven by proactiveness and the perceived availability of opportunities in an industry. As such, proactiveness appears to be the leading and primary factor in encouraging and enabling the other dimensions of EO. The research and managerial implications of these findings are also discussed.