Maximizing business performance through entrepreneurial orientation: a multilevel analysis

Abstract

Purpose

This study aims to analyze the effect of organizational context on Entrepreneurial Orientation–Business Performance (EO–BP) relationship by drawing a sample from India.

Design/methodology/approach

This firm-level study uses a cross-sectional research design. A personal survey of key informants, one each from 500 North Indian firms, has been conducted. The hypotheses were analyzed using confirmatory factor analysis (CFA), structural equation modeling and multi-group moderation analysis.

Findings

This study reveals the relevance of organizational context in strategic decision-making. This study finds that the firm’s size and nature of industry influence the inclination of an enterprise toward innovativeness and proactiveness. The results indicate that both, new entrants and older firms, can adopt entrepreneurial posture.

Originality/value

This study attempts to provide a unique perspective of entrepreneurship research by assessing the effect of organizational context on the EO–BP relationship in the Indian context. This study applies five-dimensional conceptualization of EO to EO–BP relationship and attempts to contribute to the literature by refining the inventory of five-dimensional conceptualization of EO construct. The CFA model of multifaceted subjective measurement of BP construct lends support to the integrated approach of BP measurement.

Citation

Bedi, H.S., Vij, S. and Farooq, R. (2025), "Maximizing business performance through entrepreneurial orientation: a multilevel analysis", International Journal of Innovation Science, Vol. 17 No. 1, pp. 72-93. https://doi.org/10.1108/IJIS-03-2023-0065