Effectual control orientation and innovation performance: clarifying implications in the corporate context

This study aims to assess the relationship between effectual control orientation (ECO) and a firm’s innovation performance, with entrepreneurial orientation (EO) as a mediator, in a corporate context. Based on data from 157 established corporations in Germany, the findings indicate that ECO has a po...

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Bibliographic Details
Published in:Small business economics 2020-03, Vol.54 (3), p.865-882
Main Authors: Szambelan, Sebastian Markus, Jiang, Yi Dragon
Format: Article
Language:English
Subjects:
Business and Management
Entrepreneurship
Financial performance
Industrial Organization
Innovations
Management
Microeconomics
Risk taking
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Summary:This study aims to assess the relationship between effectual control orientation (ECO) and a firm’s innovation performance, with entrepreneurial orientation (EO) as a mediator, in a corporate context. Based on data from 157 established corporations in Germany, the findings indicate that ECO has a positive effect on innovation performance. The study also shows that EO’s behavioral dimension (i.e., innovation and proactiveness), rather than risk-taking, acts as a mediating mechanism between ECO and innovation performance. The empirical results provide theoretical and managerial implications for innovation, effectuation, and EO literatures.
ISSN:0921-898X
1573-0913
DOI:10.1007/s11187-019-00156-7