Building competitive advantages and business success: the role of learning orientation, reward systems and entrepreneurial orientation
ISSN: 0955-534X
Article publication date: 8 November 2022
Issue publication date: 2 January 2023
Abstract
Purpose
The complexity of the firm’s external environment, with its constant changes, forces managers to develop novel strategies that can meet new strategic needs. The purpose of this study is to examine the role of reward systems (RSs) in strategic management, as well as their relationship to learning and entrepreneurial orientation (EO), commonly referred to as the driving force behind growth, competitive advantages (CAs) and improved performance. It also focuses on the study of the relationship between EO and business performance (BP), the introduction and testing of the possible antecedents of this relationship and potential mediating factors.
Design/methodology/approach
A conceptual model was tested on a sample of 1,190 Portuguese firms using a structural equation model.
Findings
It is shown for the first time that learning orientation (LO) is an antecedent of the RSs and, subsequently, of EO. Additionally, the CAs of differentiation and cost leadership play a mediating role in the relationship between EO and BP. Furthermore, RSs are also a driving force behind both CAs.
Originality/value
This study makes several empirical and theoretical contributions, addressing the gap in the literature about the role of RSs in strategic management. It tests the relationship between LO and the firm’s performance by taking the mediating effects of RSs, EO and CAs into account. Additionally, we discuss LO as an antecedent strategic variable of human resources practices, in particular, RSs. Finally, we broaden the scope of our research by examining these issues in the context of Portuguese SMEs from different industries.
Keywords
Acknowledgements
Funding: This work was supported by national funds through the FCT – Portuguese Foundation for Science and Technology under the project UIDB/04011/2020 and UIDB/00315/2020.
We sincerely appreciate the valuable comments and suggestions from the associate editor and reviewers, which helped us to improve the quality of the article.
Citation
Correia, R.J., Dias, J.G., Teixeira, M.S. and Campos, S. (2023), "Building competitive advantages and business success: the role of learning orientation, reward systems and entrepreneurial orientation", European Business Review, Vol. 35 No. 1, pp. 92-119. https://doi.org/10.1108/EBR-03-2022-0051
Publisher
:Emerald Publishing Limited
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