Entrepreneurial orientation as a basis for classification within a service industry: the case of retail pharmacy industry

• Published in: Journal of operations management 2005-01, Vol.23 (1), p.23-42
• Main Authors: Jambulingam, Thanigavelan, Kathuria, Ravi, Doucette, William R.
• Format: Article
• Language: English
• Subjects: Classification; Classification scheme; Competitive advantage; Drug stores; Entrepreneurial orientation; Entrepreneurs; Intangible resources; Operations research; Operations strategy; Pharmacy; Pharmacy benefit management; Service industries; Service management; Strategic planning; Studies; Taxonomy
• ISSN: 0272-6963; 1873-1317
• DOI: 10.1016/j.jom.2004.09.003

To date, service classification research has primarily taken a macro view, creating service typologies or taxonomies by using dimensions such as customer contact or degree of labor intensity. Such classification schemes, though helpful in deciphering critical management issues and positioning strategies between service industries, tend to treat an entire industry, such as airlines, as a single homogenous entity. However, organizations in the same industry often use intangible resources, such as entrepreneurial orientation processes, to compete with one another. Resource-advantage theory suggests that organizations utilize intangible resources to build long-term strategies and a sustainable competitive advantage leading to superior performance. We developed organization clusters based on entrepreneurial orientation as intangible resources to classify organizations within a retailing industry. Using data from the retail pharmacy industry, we tested if the entrepreneurial orientations of the resultant groups within the pharmacy industry were related to their perception of the environment, organizational factors, and performance outcomes. The operationalization of the construct of entrepreneurial orientation is one of the contributions of the study.