| An Empirical Analysis of the Relationships Among Entrepreneurial Orientation, Organizational Culture, and Firm Performance |
| | Chadwick, Kenneth H. | Louisiana State U. in Shreveport | kchadwic@pilot.lsus.edu | (318)-257-5186 |
| | Barnett, Tim | Louisiana Tech U. | barnett@cab.latech.edu | (318)-257-4012 |
| | Dwyer, Sean | Louisiana Tech U. | dwyer@cab.latech.edu | (318)-257-2887 |
| | The objective of this study was to empirically assess the relationships between (1) entrepreneurial orientation (EO) and firm performance, and (2) organizational culture (OC) and EO. To test our hypotheses a self-report questionnaire was mailed to a stratified random sample of 2,100 bank presidents. A total of 535 completed and usable questionnaires were returned. After controlling for bank size and age, no significant relationship was found between EO and any of the three measures of firm performance. However, support for the theoretical link between OC and EO (Cornwall & Perlman, 1990: Lumpkin & Dess, 1996) was found.
|
| | Keywords: entrepreneurship; culture |
| The Effects of Underestimating Risk on New Venture Performance: A Conceptual Examination of Moderating Factors |
| | Simon, Mark | Oakland U. | Simon@oakland.edu | (248)-370-3295 |
| | Houghton, Susan M. | Georgia State U. | mgtsmh@langate.gsu.edu | (404)-651-1893 |
| | Savelli, Sonia | Oakland U. | Simon@oakland.edu | (248) 370-3295 |
| | The very nature of entrepreneurship often requires pursuing very risky strategic initiatives (i.e., actions with long-term performance ramifications, such as starting a company or introducing a product line), leading one to ask: How do entrepreneurs overcome this risk hurdle and ultimately succeed? Drawing on information processing theory, this conceptual paper proposes a model addressing this question. It suggests that some entrepreneurs act because they exhibit three cognitive biases (i.e., mental shortcuts) known as overconfidence, illusion of control, and belief in the law of small numbers that generate misperceptions and cause entrepreneurs to underestimate the risk of their strategic initiatives. Misperceptions, however, can potentially produce low quality choices, suggesting that, paradoxically, the very processes that increase the likelihood of acting could decrease venture performance. To resolve this quandary, the model identifies constructs that allow strategic initiatives based upon erroneous assumptions to have a more positive effect on venture performance. Specifically, certain characteristics related to the venture's top management team, structure, strategy, and environment may improve the entrepreneurs' ability to accurately interpret feedback from their initiatives, thereby allowing them to correct earlier misjudgments and to adjust their actions accordingly. Finally, the article discusses implications and future research directions. This paper adds to the literature by examining a subject largely overlooked in the literature, how one of the largest categories of entrepreneurs, those who underestimate risk, may improve their subsequent performance. |
| | Keywords: Risk; Cognition; Performance |
| Antecedents of Small Business Success |
| | Rutherford, Matt W. | Auburn U. | mrutherford@business.auburn.edu | 334-844-6546 |
| | Oswald, Sharon L. | Auburn U. | oswald@business.auburn.edu | 334-844-6508 |
| | This paper focuses on what makes small businesses successful and whether consistent patterns of success can be identified.
The methodology draws upon prior research; however, it improves upon previous work by using a significantly larger sample size
representing a large array of industries across the US (Ibrahim & Goodwin, 1986; Cragg & King, 1988; Perry, Meredith & Cunnington, 1988).
Results indicate that entrepreneur education, legal structure, record keeping, and industry classification do have an effect on small firm
performance. However management experience, gender, and geographic location had no effect. Additionally, the overall model did not
explain much variance between firms. Based on our findings, implications are suggested. |
| | Keywords: small business; success |