Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance

This research seeks to investigate the relationship between entrepreneurial orientation dimensions (behavioral dimension EOBD and attitudinal dimension EOAD) and firm performance (FP) through a sequential mediation model of innovation capability (IC) and firm resilience capability (FRC) in a specifi...

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Main Author: Wassim J. Aloulou
Format: Article
Language:English
Published: MDPI AG 2023-07-01
Series:Administrative Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-3387/13/7/168
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author Wassim J. Aloulou
author_facet Wassim J. Aloulou
author_sort Wassim J. Aloulou
collection DOAJ
description This research seeks to investigate the relationship between entrepreneurial orientation dimensions (behavioral dimension EOBD and attitudinal dimension EOAD) and firm performance (FP) through a sequential mediation model of innovation capability (IC) and firm resilience capability (FRC) in a specific context. Sample data for this study were collected using a questionnaire survey from 225 randomly selected SMEs in Saudi Arabia and analyzed using structural equation modeling. The results revealed that there are significant relationships between EO dimensions and IC. No direct relationships were found between EO dimensions and FRC or between EOAD and FP. Therefore, IC plays a mediating role in the relationships between EO dimensions and FRC. In addition, FRC does not play a mediating role in the relationships between EO dimensions and FP. On the contrary, it plays a partial mediation between IC and FP. To our knowledge, little research has investigated simultaneously the effects of EO, IC, FRC and FP in the Saudi context. Our study contributes to the literature on entrepreneurship, innovation and resilience by providing new empirical evidence. It also contributes to managerial practices by displaying the importance of translating strategic EO dimensions into performance outcomes through IC and FRC.
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spelling doaj.art-305c257e357c43cb8ce378d4f75f96ea2023-11-18T17:50:06ZengMDPI AGAdministrative Sciences2076-33872023-07-0113716810.3390/admsci13070168Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm PerformanceWassim J. Aloulou0Business Administration Department, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University, Riyadh 5701, Saudi ArabiaThis research seeks to investigate the relationship between entrepreneurial orientation dimensions (behavioral dimension EOBD and attitudinal dimension EOAD) and firm performance (FP) through a sequential mediation model of innovation capability (IC) and firm resilience capability (FRC) in a specific context. Sample data for this study were collected using a questionnaire survey from 225 randomly selected SMEs in Saudi Arabia and analyzed using structural equation modeling. The results revealed that there are significant relationships between EO dimensions and IC. No direct relationships were found between EO dimensions and FRC or between EOAD and FP. Therefore, IC plays a mediating role in the relationships between EO dimensions and FRC. In addition, FRC does not play a mediating role in the relationships between EO dimensions and FP. On the contrary, it plays a partial mediation between IC and FP. To our knowledge, little research has investigated simultaneously the effects of EO, IC, FRC and FP in the Saudi context. Our study contributes to the literature on entrepreneurship, innovation and resilience by providing new empirical evidence. It also contributes to managerial practices by displaying the importance of translating strategic EO dimensions into performance outcomes through IC and FRC.https://www.mdpi.com/2076-3387/13/7/168entrepreneurial orientationinnovation capabilityfirm resilience capabilityfirm performanceSaudi Arabia
spellingShingle Wassim J. Aloulou
Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
Administrative Sciences
entrepreneurial orientation
innovation capability
firm resilience capability
firm performance
Saudi Arabia
title Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
title_full Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
title_fullStr Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
title_full_unstemmed Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
title_short Be Innovative and Resilient: Empirical Evidence from Saudi Firms on How to Translate Entrepreneurial Orientation into Firm Performance
title_sort be innovative and resilient empirical evidence from saudi firms on how to translate entrepreneurial orientation into firm performance
topic entrepreneurial orientation
innovation capability
firm resilience capability
firm performance
Saudi Arabia
url https://www.mdpi.com/2076-3387/13/7/168
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