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The nonlinear relationship between entrepreneurial orientation and sales growth: The moderating effects of slack resources and absorptive capacity
University of Vaasa, School of Management, Vaasa, Finland.
University of Vaasa, School of Management, Vaasa, Finland.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering. University of Vaasa, School of Management, Vaasa, Finland.ORCID iD: 0000-0003-3255-414X
2019 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 100, p. 100-110Article in journal (Refereed) Published
Abstract [en]

The present study aims to advance the understanding of the complex and context-dependent relationship between entrepreneurial orientation (EO) and firm sales growth by investigating the linearity assumption and assessing the moderating role of financial slack resources and absorptive capacity in the mature industry context. Departing from some recent EO studies, the analysis based on a dataset of 86 companies operating in the food manufacturing industry suggests that EO has a nonlinear relationship with sales growth. Moreover, the results suggest that in companies with high levels of slack resources, an increase in EO from low to moderate levels accelerates sales growth; however, to capitalize on the sales growth potential of high EO, a high absorptive capacity is also required. Thus, the present study demonstrates a nonlinear effect of EO on sales growth, and particularly from moderate to high levels of EO, the positive moderating effects of absorptive capacity and slack resources.

Place, publisher, year, edition, pages
Elsevier, 2019. Vol. 100, p. 100-110
Keywords [en]
Entrepreneurial orientation (EO), Absorptive capacity (ACAP), Sales growth, Organizational agility, Strategic learning, Nonlinear model
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-73345DOI: 10.1016/j.jbusres.2019.03.018ISI: 000470942500009Scopus ID: 2-s2.0-85063209628OAI: oai:DiVA.org:ltu-73345DiVA, id: diva2:1299910
Note

Validerad;2019;Nivå 2;2019-03-28 (johcin)

Available from: 2019-03-28 Created: 2019-03-28 Last updated: 2019-07-01Bibliographically approved

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Parida, Vinit

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