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Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship

Authors

  • Jeffrey G. Covin,

    Corresponding author
    1. The Samuel and Pauline Glaubinger Professor of Entrepreneurship
      Jeffrey G. Covin at covin@indiana.edu, to Kimberly M. Green at greenk@indiana.edu, and to Dennis P. Slevin at dpslevin@katz.pitt.edu
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  • Kimberly M. Green,

    Corresponding author
    1. Kelley School of Business, Indiana University.
      Jeffrey G. Covin at covin@indiana.edu, to Kimberly M. Green at greenk@indiana.edu, and to Dennis P. Slevin at dpslevin@katz.pitt.edu
    Search for more papers by this author
  • Dennis P. Slevin

    Corresponding author
    1. Katz Graduate School of Business, University of Pittsburgh.
      Jeffrey G. Covin at covin@indiana.edu, to Kimberly M. Green at greenk@indiana.edu, and to Dennis P. Slevin at dpslevin@katz.pitt.edu
    Search for more papers by this author

Jeffrey G. Covin at covin@indiana.edu, to Kimberly M. Green at greenk@indiana.edu, and to Dennis P. Slevin at dpslevin@katz.pitt.edu

Abstract

This research examined the effects of three strategic process variables—strategic decision-making participativeness, strategy formation mode, and strategic learning from failure—on the entrepreneurial orientation (EO)–firm sales growth rate relationship. Results based on a sample of 110 manufacturing firms indicated a positive effect of EO on sales growth rate. Moreover, the relationship between EO and sales growth rate was more positive among firms that employ autocratic decision making and that exhibit an emergent strategy formation process. Perceptions of proficiency at learning from strategic mistakes differentially affected the growth rates of firms at different ends of the EO continuum, but in manners inconsistent with the hypothesized relationship.

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