Andreas Engelen

Entrepreneurial Orientation, Firm Performance, and the Moderating Role of Transformational Leadership Behaviors:

Extant research has shown that entrepreneurial orientation (EO) is positively associated with firm performance, but several contingencies affect the strength of this relationship. This article uses insights from the resource-based view and upper echelons perspective to introduce top management’s transformational leadership behaviors as moderators in the EO–performance relationship. The theoretically derived model is tested using survey data obtained from 790 small-and medium-sized firms in six countries. Findings indicate that, regardless of national setting, four transformational behaviors—articulating a vision, providing an appropriate model, having high performance expectations, and showing supportive leader behavior—positively affect the relationship between EO and firm performance. Further, the performance consequences of EO are greater when top management adheres to a configuration characterized by the highest possible levels of transformational behaviors. Implications and directions for future research are discussed.

On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation–Performance Relationship

The relationship between entrepreneurial orientation (EO) and firm performance is among the best–researched topics in entrepreneurship research. These studies have been conducted in various national contexts. While a first meta–analysis by Rauch et al. finds no significant difference between EOs effects based on the continent in which the firm is based, the present study considers how national cultural and macroeconomic drivers impact the EO–performance relationship. Building upon 177 studies with data from 41 countries, the meta–analysis consolidates this literature stream, contributing to the evidence–based entrepreneurship research.

Antecedents of Market Orientation: A Cross-Cultural Comparison

The authors examine the effect of national culture on the relationship between market orientation and selected managerial antecedents. They develop and test a theoretical framework with samples from Germany, Thailand, and Indonesia. The findings suggest that national culture has an impact on the effects of antecedents in some cases, whereas in other situations, culture-independent relationships emerge.

How Top Management's Social Capital Fosters the Development of Specialized Marketing Capabilities: A Cross-Cultural Comparison

The main purpose of this research is to investigate the role of top managements social capital as a microlevel origin of four specialized marketing capabilities: pricing, product development, distribution, and marketing communication. The authors investigate the moderating effect of national culture on the link between social capital and marketing capability using survey data from 891 firms across four countries (China, Germany, Hong Kong, and the United States). The findings indicate that the elements of social capital—managerial tie utilization, trust, and solidarity—are strong drivers of the four marketing capabilities. Managerial tie utilization and solidarity tend to be more important when national cultures power distance is low, collectivism is high, and uncertainty avoidance is low, whereas the effect of trust is not subject to national cultural variations. From a managerial perspective, this research emphasizes the strong role and responsibility of top management team members, including marketing managers who are at this level, in building organization-level marketing capabilities.

The Effect of Organizational Culture on Entrepreneurial Orientation: A Comparison between Germany and Thailand

Prior research has emphasized the positive impact of a firms entrepreneurial orientation on its performance. An unanswered question concerns what organizational antecedents and drivers foster entrepreneurial orientation. Based on a sample of 643 German and Thai companies, this study analyzes how organizational culture influences a firms entrepreneurial orientation and how this relationship is influenced by national culture. Results show that an organizational culture that is an adhocracy is most effective in advancing entrepreneurial orientation, especially in national cultures that are characterized by strong individualism and low power distance, whereas a hierarchical organizational culture is generally a barrier to entrepreneurial orientation.

Should Entrepreneurially Oriented Firms Have Narcissistic CEOs

Extant research has shown that firms with high levels of entrepreneurial orientation (EO) outperform competitors. The present study sheds light on this performance relationship in large, publicly listed high-tech firms by examining whether the strength of this relationship depends upon the CEO’s narcissism, an executive personality trait recently debated controversially in both academic and practitioner publications. A theoretically derived research model is empirically validated by means of multisource secondary data for 41 S&P 500 firms from 2005 to 2007. Findings indicate that narcissistic CEOs usually weaken the EO-performance relationship, although the opposite is true under some conditions, such as in highly concentrated and dynamic markets.

A Cross-Cultural Perspective of Marketing Departments' Influence Tactics

Recent marketing literature has shown that an influential marketing department is a driver of an organizationwide market orientation and, in some studies, of firm performance. Recognizing the importance of a strong marketing department, this study develops a theoretical model of the levers of marketing departments’ influence and examines the degree to which the effects of the levers are subject to national cultural variations. The authors empirically validate the theoretical model using 740 firms from six Western and Asian countries. The findings reveal both culturally dependent and independent effects. For example, although a great degree of innovativeness in the marketing department has a positive impact on the departments influence across cultures, a high level of accountability and integration with other departments shows cultural dependencies. Global marketing managers learn whether they should advise their local marketing department to use standardized influence tactics or make necessary adaptations to local circumstances.

Distribution Channel Choice of New Entrepreneurial Ventures

This study provides a comprehensive analysis of distribution channel choices of new entrepreneurial ventures (NEVs). First, factors that influence NEVs’ choice of distribution channels are examined. Second, performance consequences of those choices are investigated. A research model drawing from transaction cost economics as well as customer relationship and strategy literature is developed. Data collected from 330 NEVs are used to test the proposed model. The results show that the identified antecedents explain a large part of the variance in NEVs’ channel choice. Moreover, NEVs that accomplish a fit between their distribution channel system and transaction cost–, product–, strategy–, and competition–related variables tend to perform better. Findings are discussed in light of the specific characteristics of NEVs.

'Of Course I Can': The Effect of CEO Overconfidence on Entrepreneurially Oriented Firms

Guided by the upper echelons theory, this research examines the relationship between chief executive officer (CEO) overconfidence and a firms entrepreneurial orientation (EO). The study theoretically establishes and empirically validates an increasing effect of CEO overconfidence on EO, although at a decreasing rate. Empirical results are based on a multisource secondary data set for high–tech S&P 500 firms from 2005 to 2007. Findings further indicate that the proposed relationship between CEO overconfidence and EO is moderated by market dynamism. A theoretically established moderating effect of market concentration could not be validated empirically.

Which department should have more influence on organization-level decisions? A strategy-dependent analysis

An intense debate has arisen on the decreasing influence of marketing departments in firms. The present study addresses this debate, building upon the coalitional view of the firm and the ‘thought world’ concept to shed light on the question concerning which department should have more influence on organization-level decisions, such as the strategic direction of the firm and investments in IT technology. The roles and influence of four major departments – marketing, sales, R&D, and manufacturing – are investigated in terms of how they affect firm performance. Findings indicate that strong marketing and sales departments are important for firms that have a differentiation strategy, while strong R&D departments are beneficial regardless of the strategy type, and a strong manufacturing department is important in firms with a cost leadership focus. Findings also reveal an inverted U-shaped relationship between the dispersion of influence and performance, so a medium level of influence dispersion is the most effective. The study shows the effect of political processes in an organization on performance. Avenues for marketing research are derived.