European Entrepreneurship in the Globalizing Economy

European Entrepreneurship in the Globalizing Economy

European Research in Entrepreneurship series

Edited by Alain Fayolle and Kiril Todorov

What role can entrepreneurship play in a European economy that is more and more open to the rest of the world? In this European Union construction, what is the place of the nation states and economies that have only recently converted to a free market economy? It is these questions, among others, that the book explores and discusses in particular. The future steps required in developing European entrepreneurship in a dynamic and international context are also analyzed and synthesized.

Chapter 4: Understanding the Impact of Culture on a Firm’s Entrepreneurial Orientation and Behaviour: A Conceptual Framework

Alain Fayolle, Oivier Basso and Véronique Bouchard

Subjects: business and management, entrepreneurship, international business

Extract

1 Alain Fayolle, Olivier Basso and Véronique Bouchard INTRODUCTION For almost four decades now, both practitioners and scholars have shown a marked interest in corporate entrepreneurship. In a changing world, large and small companies have to innovate and react quickly just to maintain their competitiveness (Ireland et al., 2001). They have to continually identify new opportunities and turn these opportunities into revenue streams: they have to behave entrepreneurially (Stevenson and Jarillo, 1990; Shane and Venkataraman, 2000). In the entrepreneurship literature, corporate entrepreneurship is defined in a variety of ways and there is an abundance of empirical research linking corporate entrepreneurship to performance. In all these studies, the entrepreneurial orientation construct holds a particularly important place (see, for example, Lumpkin and Dess, 1996; Wiklund, 1999; Wiklund and Shepherd, 2003). Measured through dimensions such as innovativeness, risk-taking, proactiveness, autonomy and competitive aggressiveness (Miller, 1983; Covin and Slevin, 1989; Lumpkin and Dess, 1996), the entrepreneurial orientation construct appears as a useful (and powerful) tool for assessing entrepreneurial behaviour at firm level and its effect on firm performance. According to Lumpkin and Dess (1996, p. 136), ‘firms that want to engage in successful corporate entrepreneurship need to have an entrepreneurial orientation’. Entrepreneurial orientation is often described in entrepreneurship literature as the mindset of firms engaged in the pursuit of new opportunities. Research on entrepreneurial orientation focuses on its definition, its measure and its relationship with the performance of firms. More 44 M2543 - FAYOLLE PRINT.indd 44 08/03/2011 15:56 Understanding the impact of...

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