Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective

Abstract

Strategic entrepreneurship (SE) emphasises the complementary roles played by entrepreneurship and strategic management in promoting firm growth. This article adopts two dominant concepts from each field— entrepreneurial orientation (EO) and dynamic capabilities (DCs)—to investigate their interaction effects on firm performance (FP). It further examines three contingencies—firm, market and product innovation— that significantly affect the levels of EO and DCs that firms pursue. This study analyses the influence of EO and DCs on performance using hierarchical regression models. Interaction effects of EO and DCs on FP demonstrate a positive relationship. This study found that DCs are more critical for incumbent firms than for small firms. Both EO and DCs enhance performance in dynamic markets. The EO increases performance under radical product innovation, while DCs show no effects. This study