Entrepreneurial orientation and firm performance: The moderating role of managerial power

Davis, Justin L. (author)
Bell, R. Greg (author)
Payne, G. Tyge (author)
Kreiser, Patrick M. (author)

American Journal of Business

1935-519X

25

2

41

54

2010

10.1108/19355181201000009

Emerald Group Publishing Limited

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 perfor- mance. 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.

Entrepreneurial orientation
power
Top management

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