Entrepreneurial Orientation and Firm Performance: The Moderating Role of Managerial Power

• Published in: American journal of business Vol. 25; no. 2; pp. 41 - 54
• Main Authors: Davis, Justin L., Greg Bell, R., Tyge Payne, G., Kreiser, Patrick M.
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Group Publishing Limited 22.09.2010; Emerald Group Publishing, Ltd
• Subjects: Analysis; Behavior; Corporate governance; Decision making; Employee performance; Entrepreneurial orientation; Entrepreneurs; Entrepreneurship; Leadership; Management; Managers; Power; Social interaction; Studies; top management; United States; Entrepreneurial orientation; top management; power
• ISSN: 1935-5181; 1935-519X; 1935-5181
• DOI: 10.1108/19355181201000009

Organizational researchers have long recognized the important role that top managers play within entrepreneurial firms (Ireland, Hitt and Sirmon 2003). Utilizing Covin and Slevin's (1989) conceptual framework, the current study explores three key entrepreneurial characteristics of top managers and the impact these characteristics have on firm performance. Specifically, we argue that top managers with a high tolerance of risk, those who favor innovative activities and those who display a high degree of proactiveness will positively impact firm performance. In addition, this study examines the influence of top managers' prestige, structural and expert power on the relationship between entrepreneurial orientation and firm performance. We conclude the study with a discussion of theoretical and practical implications of our findings and suggestions for future research in this area of study.