Proactiveness, competitive aggressiveness and autonomy: a comparative study from the Czech Republic
DOI:
https://doi.org/10.12775/EQUIL.2016.028Keywords:
entrepreneurial orientation, micro enterprises, small and medium enterprisesAbstract
The purpose of this comparative study is to explore the differences in the entrepreneurial orientation (EO) between micro versus small and medium enterprises (SMEs). We have selected three dimensions of EO (proactiveness, competitive aggressiveness and autonomy) for our analysis. We have analyzed the data collected from 1141 respondents during the period of 2015 from 14 regions of the Czech Republic, which consists of 740 micro firms and 401 small and medium firms. Empirical results of our paper show significant differences between micro versus small and medium enterprises in terms of proactiveness and autonomy. However, we can only partially confirm that micro firms are statistically different from the SMEs in terms of competitive aggressiveness. Thus, our paper enables better understanding of the EO from the firm size perspective, when they have different levels of resources.
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References
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Mahmood, R., & Hanafi, N. (2013). Entrepreneurial Orientation and Business Performance of Women-owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator. International Journal of Business and Social Science, 4(1).
Messersmith, J. G., & Wales, W. J. (2011). Entrepreneurial Orientation and Per-formance in Young Firms: The Role of Human Resource Management. Inter-national Small Business Journal, 31(2). DOI: http://dx.doi.org/ 10.1177/02 66242611416141.
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Mintzberg, H. (1973). Strategy-making in Three Modes. California Management Review, 16(2). DOI: http://dx.doi.org/10.2307/41164491.
Moreno, A., & Casillas, J. (2008). Entrepreneurial Orientation and Growths of SMEs: A Causal Model. Entrepreneurship Theory and Practice, 32(3). DOI: http://dx.doi.org/10.1111/j.1540-6520.2008.00238.x.
Moss, T. V., Neubaum, D. O., & Meyskens, M. (2015). The Effect of Virtuous and Entrepreneurial Orientations on Micro?nance Lending and Repayment: A Sig-naling Theory Perspective. Entrepreneursh?p Theory and Practice, 39(1). DOI: http://dx.doi.org/10.1111/etap.12110.
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Salavou, H., Baltas, G., & Lioukas, S. (2004). Organizational Innovation in SMEs: The Importance of Strategic Orientation and Competitive Structure. European Journal of Marketing, 38(9/10). DOI: http://dx.doi.org/10.1108/0309056 0410548889.
Slater, S. F., & Narver, J. C. (2000). The Positive Effect of a Market Orientation on Business Profitability: a Balanced Replication. Journal of Business Research, 48(1). DOI: http://dx.doi.org/10.1016/S0148-2963(98)00077-0.
Smékalová, L., Hájek, O., Belás, J., & Macháček, J. (2014). Perception of Small and Medium Entrepreneurship in the Czech Republic. Journal of Competitive-ness, 6(4). DOI: http://dx.doi.org/10.7441/joc.2014.04.03.
Szwajca, D. (2016). Corporate Reputation and Customer Loyalty as the Measures of Competitive Enterprise Position ? Empirical Analyses on the Example of Polish Banking Sector. Oeconomia Copernicana, 7(1). DOI: http://dx.doi.org/ 10.12775/OeC.2016.007.
Thapa, A. (2015). Determinants of Microenterprise Performance in Nepal. Small Business Economy, 45(3). DOI: http://dx.doi.org/10.1007/s11187-015-9654-0.
Thornhill, S., & Amit, R. (2003). Learning About Failure: Bankruptcy, Firm Age and the Resource-based View. Organization Science, 14(5). DOI: http://dx.doi.org/ 10.1287/orsc.14.5.497.16761.
Welsh, D. H. B., Munoz, J. M., Deng, S., & Raven, P. V. (2013). Microenterprise Performance and Microenterprise Zones (MEZOs) in China. Management De-cision, 51(1). DOI: http://dx.doi.org/10.1108/00251741311291292.
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Allen, R., Helms, M., Takeda, M., & White, C. (2006). A Comparison of Competi-tive Strategies in Japan and the United States. SAM Advanced Management Journal, 71(1).
Anderson, B. S., & Eshima, Y. (2013). The In?uence of Firm Age and Intangible Resources on the Relationship Between Entrepreneurial Orientation and Firm Growth Among Japanese SMEs. Journal of Business Venturing, 28. DOI: http://dx.doi.org/10.1016/j.jbusvent.2011.10.001.
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Jour-nal of Management, 17(1). DOI: http://dx.doi.org/10.1177/0149206 3910170 0108.
Barringer, B. R., & Bluedorn, A. C. (1999). The Relationship Between Corporate Entrepreneurship and Strategic Management. Strategic Management Journal, 20. DOI: http://dx.doi.org/10.1002/(SICI)1097-0266(199905)20:5<421::AID-SMJ30>3.0.CO;2-O.
Beck, T., Lu, L., &Yang, R. (2015). Finance and Growth for Microenterprises: Evidence from Rural China. World Development, 67. DOI: http://dx.doi.org/10.1016/j.worlddev.2014.10.008.
Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just Entrepreneurial Enough: the Moderating Effect of Entrepreneurship on the Relationship Between Market Orientation and Performance. Journal of Business Research, 58(1). DOI: http://dx.doi.org/10.1016/S0148-2963(03)00074-2.
Blumentritt, T., & Danis, W. (2006). Business Strategy Types and Innovative Prac-tices. Journal of Managerial Issues, 18(2).
Clear, F., & Dickson, K. (2005). Teleworking Practice in Small and Medium-sized Firms: Management Style and Worker Autonomy. New Technology, Work and Employment, 20(3). DOI: http://dx.doi.org/10.1111/j.1468-005X.2005.00155.x.
Covin, J. G., Slevin, D. P., & Schultz, L. R. (1994). Implementing Strategic Mis-sions: Effective Strategic, Structural, and Tactic Choices. Journal of Manage-ment Studies, 31(4). DOI: http://dx.doi.org/10.1111/j.1467-6486.1994.t b00627.x.
Covin, J. G., & Slevin, D. P. (1988). The In?uence of Organization Structure on the Utility of an Entrepreneurial Top Management style. Journal of Management Studies, 25(3). DOI: http://dx.doi.org/10.1111/j.1467-6486.1988.tb00 033.x.
Covin, J. G., & Wales, G. (2011). The Measurement of Entrepreneurial Orientation. Entrepreneurship Theory and Practice, 36(4). DOI: http://dx.doi.org/10. 1111/j.1540-6520.2010.00432.x.
Dimitrator, P., Lioukas, S., & Carter, S. (2002). The Relationship Between Entre-preneurship and International Performance: the Importance of Domestic Envi-ronment. International Business Review, 13(1). DOI: http://dx.doi.org/10.1016 /j.ibusrev.2003.08.001.
Ejdys, J. (2016). Entrepreneurial Orientation vs. Innovativeness of Small and Me-dium Size Enterprises of Podlaskie Voivodship. Journal of Engineering, Pro-ject, and Production Management, 6(1).
George, G., Wood, D. R. Jr, & Khan, R. (2001). Networking Strategy of Boards: Implications for Small and Medium-sized Enterprises. Entrepreneurship & Re-gional Development, 13(3). DOI: http://dx.doi.org/10.1080/089856201 1005 8115.
http://www.socscistatistics.com/tests.
http://www.socscistatistics.com/tests/ztest/Default2.aspx.
Hughes, M., & Morgan, R. (2007). Deconstructing the Relationship Between En-trepreneurial Orientation and Business Performance at the Embryonic Stage of firm Growth. Industrial Marketing Management, 36(5). DOI: http://dx.doi.org/ 10.1016/j.indmarman.2006.04.003.
Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A Model of Strategic Entre-preneurship: The Construct and Its Dimensions. Journal of Management, 29(6). DOI: http://dx.doi.org/10.1016/S0149-2063_03_00086-2.
Ismail, V. Y. (2014). The Comparison of Entrepreneurial Competency in Woman Micro-, Small-, and Medium-scale Entrepreneurs. Procedia, Social and Behav-ioral Sciences, 115(2014). DOI: http://dx.doi.org/10.1016/j.sbspro.2014 .02.426.
Ivanova, E., & Koisova E. (2014). Interregional Disparities in the Slovak and Czech Republic. Economic & Tourism. SGEM Conferencion Political Sciences Law, Finance. Volume IV. Sofia: STEF92 Technology, DOI: http://dx.doi.org/10.5593/sgemsocial2014/B24/S7.052.
Jahur, M. S., & Quadir, S. M. N. (2012). Financial Distress In Small And Medium Enterprises (SMEs) of Bangladesh: Determinants and Remedial Measures. Economia Seria Management, 15(1).
Jelenc, L., Pisapia, J., & Ivanusic, N. (2015). Demographic Variables Influencing Individual Entrepreneurial Or?entation and Strategic Thinking Capability. In 10th International Scientific Conference on Economic and Social Development. Miami.
Kemelgor, B. H. (2002). A Comparative Analysis of Corporate Entrepreneurial Orientation Between Selected Firms in The Netherlands and the USA. Entre-preneurship & Regional Development, 14(1). DOI: http://dx.doi.org/10.1080/ 08985620110087023.
Kozubíková, L., Belás, J., Ključnikov, A., & Virglerová, Z. (2015). Differences in Approach to Selected Constructs of Entrepreneurial Orientation in SME Seg-ment Regarding the Selected Socio-Demographic Factors. Transformations in Business and Economics, 14(3C-36C).
Kraus, S. (2013). The Role of Entrepreneurial Orientation in Service Firms: Empir-ical Evidence From Austria. Service Industries Journal, 33(5). DOI: http://dx.doi.org/10.1080/02642069.2011.622373.
Lechner, C., & Gudmundsson V. S. (2014). Entrepreneurial Orientation, Firm Strategy and Small Firm Performance. International Small Business Journal, 32(1). DOI: http://dx.doi.org/10.1177/0266242612455034.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. Academy of Management Review, 21(1). DOI: http://dx.doi.org/10.5465/AMR.1996.9602161568.
Lumpkin, G. T., Cogliser, C., & Schneider, D. (2009). Understanding and Measur-ing Autonomy: An Entrepreneurial Orientation Perspective. Entrepreneurship Theory and Practice, 33(3). DOI: http://dx.doi.org/10.1111/j.1540-6520.2008.00280.x.
Mahmood, R., & Hanafi, N. (2013). Entrepreneurial Orientation and Business Performance of Women-owned Small and Medium Enterprises in Malaysia: Competitive Advantage as a Mediator. International Journal of Business and Social Science, 4(1).
Messersmith, J. G., & Wales, W. J. (2011). Entrepreneurial Orientation and Per-formance in Young Firms: The Role of Human Resource Management. Inter-national Small Business Journal, 31(2). DOI: http://dx.doi.org/ 10.1177/02 66242611416141.
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29(7). DOI: http://dx.doi.org/10.1287/mnsc.29.7.770.
Mintzberg, H. (1973). Strategy-making in Three Modes. California Management Review, 16(2). DOI: http://dx.doi.org/10.2307/41164491.
Moreno, A., & Casillas, J. (2008). Entrepreneurial Orientation and Growths of SMEs: A Causal Model. Entrepreneurship Theory and Practice, 32(3). DOI: http://dx.doi.org/10.1111/j.1540-6520.2008.00238.x.
Moss, T. V., Neubaum, D. O., & Meyskens, M. (2015). The Effect of Virtuous and Entrepreneurial Orientations on Micro?nance Lending and Repayment: A Sig-naling Theory Perspective. Entrepreneursh?p Theory and Practice, 39(1). DOI: http://dx.doi.org/10.1111/etap.12110.
Munoz, J. M., Welsh, D. H. B., Chan, S., & Raven, P. V. (2015). Microenterprises in Malaysia: A Preliminary Study of the Factors for Management Success. In-ternational Entrepreneurship and Management Journal, 11. DOI: http://dx.doi.org/10.1007/s11365-014-0302-y.
Pearce, J. A., II, Fritz, P., & Davis, P. S. (2010). Entrepreneurial Orientation and the Performance of Religious Congregations as Predicted by Rational Choice Theory. Entrepreneurship Theory and Practice, 34(1). DOI: http://dx.doi.org/ 10.1111/j.1540-6520.2009.00315.x.
Pisoni, A., Fratocchi, L., & Onetti, A. (2013). Subsidiary Autonomy in Transition Economies: Italian SMEs in Central and Eastern European Countries. Journal for East European Management Studies, 18(3).
Pett, T. L., & Wolff, J. A. (2011). SME Identity and Homogeneity- Are There Meaningful Differences Between, Micro, Small, and Medium-Sized Enterpris-es?. International Council for Small Business, 6(2).
Rauch, A., Wiklund, J., Lumpkin G. T., & Frese, F. (2009). Entrepreneurial Orien-tation and Business Performance: An Assessment of Past Research and Suggestions for the Future. Entrepreneurship Theory and Practice, 33(3). DOI: http://dx.doi.org/10.1111/j.1540-6520.2009.00308.x.
Runyan, R., Huddleston, P., & Swinney, J. (2006). Entrepreneurial Orientation and Social Capital as Small Firm Strategies: A Study of Gender Differences From a Resource-based View. International Entrepreneurship and Management Journal, 2(4). DOI: http://dx.doi.org/10.1007/s11365-006-0010-3.
Salavou, H., Baltas, G., & Lioukas, S. (2004). Organizational Innovation in SMEs: The Importance of Strategic Orientation and Competitive Structure. European Journal of Marketing, 38(9/10). DOI: http://dx.doi.org/10.1108/0309056 0410548889.
Slater, S. F., & Narver, J. C. (2000). The Positive Effect of a Market Orientation on Business Profitability: a Balanced Replication. Journal of Business Research, 48(1). DOI: http://dx.doi.org/10.1016/S0148-2963(98)00077-0.
Smékalová, L., Hájek, O., Belás, J., & Macháček, J. (2014). Perception of Small and Medium Entrepreneurship in the Czech Republic. Journal of Competitive-ness, 6(4). DOI: http://dx.doi.org/10.7441/joc.2014.04.03.
Szwajca, D. (2016). Corporate Reputation and Customer Loyalty as the Measures of Competitive Enterprise Position ? Empirical Analyses on the Example of Polish Banking Sector. Oeconomia Copernicana, 7(1). DOI: http://dx.doi.org/ 10.12775/OeC.2016.007.
Thapa, A. (2015). Determinants of Microenterprise Performance in Nepal. Small Business Economy, 45(3). DOI: http://dx.doi.org/10.1007/s11187-015-9654-0.
Thornhill, S., & Amit, R. (2003). Learning About Failure: Bankruptcy, Firm Age and the Resource-based View. Organization Science, 14(5). DOI: http://dx.doi.org/ 10.1287/orsc.14.5.497.16761.
Welsh, D. H. B., Munoz, J. M., Deng, S., & Raven, P. V. (2013). Microenterprise Performance and Microenterprise Zones (MEZOs) in China. Management De-cision, 51(1). DOI: http://dx.doi.org/10.1108/00251741311291292.
Wiklund, J., & Shepard, D. (2003). Knowledge-based Resources, Entrepreneurial Orientation, and the Performance of Small and Medium Sized Businesses. Strategic Management Journal, 24(13). DOI: http://dx.doi.org/10.1002/smj.360.
Zahra, S. A., & Neubaum, D. O. (1998). Environmental Diversity and the Entre-preneurial Activities of new Venture. Journal of Developmental Entrepreneur-ship, 3(2).
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Published
2016-09-30
How to Cite
Rahman, A. R., Civelek, M. C., & Kozubikova, L. K. (2016). Proactiveness, competitive aggressiveness and autonomy: a comparative study from the Czech Republic. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(3), 631–650. https://doi.org/10.12775/EQUIL.2016.028
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