Monday, December 12, 2011

Entrepreneurial Orientation Construct

The essential act of entrepreneurship is new entry.

Entrepreneurial orientation in a person is presence of knowlege, skill and behavior in activities when done in combination lead to new business ventures or new entry into the business landscape.

The entrepreneurial orientation is described by five dimensions in the paper by Lumpkin and Dess.

Autonomy
Innovativeness
Risk taking
Proactiveness
Competitive aggressiveness

Lumpkin and Dess (1996) expanded the dimensions of entrepreneurial orientation. The construct initially started with innovativeness, pro-activeness and openness towards risk (Miller, 1983; Covin and Slevin, 1986,1989).

Lumpkin and Dess explained that EO represents key entrepreneurial processes and is concerned with how new ventures are undertaken, whereas entrepreneurship refers to the content of decisions taken: what is undertaken.

Most empirical studies of entrepreneurial orientation have utilized the instrument
developed by Miller (1983) and extended by Covin and Slevin (1986; 1988; 1989).
This instrument has been criticized on the grounds of mixing perceptual or
subjective evaluations, such as current attitudes held by CEOs, with self-reporting
of more objective information relating to past organisational behaviour (Brown et.
al. 2001). (Quince and Whittaker, 2003)


Thelma Quince and Hugh Whittaker, http://www.cbr.cam.ac.uk/pdf/wp271.pdf

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