Entrepreneurial Orientation in low- and medium-tech industries: The need for Absorptive Capacity to increase performance |
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Authors: | Salvatore Sciascia,Laura D&rsquo Oria,Massimiliano Bruni,Bá rbara Larrañ eta |
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Affiliation: | 1. IULM University, Milan, Italy;2. University of Tennessee, Knoxville, USA;3. Universidad Pablo de Olavide, Sevilla, Spain |
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Abstract: | The implications of Entrepreneurial Orientation (EO) for firm performance in low- and medium-tech (LMT) industries are largely unexplored and seem to be limited. In this paper we seek to address this research gap studying how Absorptive Capacity can act as a key factor determining the effectiveness of EO in such a context. Specifically, we adopt the knowledge-based view of the firm and explore the moderating effects of Absorptive Capacity’s Potential and Realized dimensions on the EO–performance relationship in LMT industries. Our regression results based on a lagged dataset of 103 medium-sized firms based in Italy confirm our hypotheses that, in LMT industries, EO has a positive effect on firm performance when coupled with high levels of both Potential and Realized Absorptive Capacity. |
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Keywords: | Entrepreneurial Orientation Absorptive Capacity Performance LMT industries |
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