Entrepreneurial orientation, passion for work, perceived environmental dynamism and firm performance in an emerging economy

Abstract

Purpose - Previous scholarly studies have concluded that entrepreneurial orientation (EO) positively relates to firm performance and that relationship is dependent on several contingencies. The purpose of this paper is to show how managers’ passion for work and the external environment (i.e. environmental dynamism) within which firms operate interactively impact on EO-firm performance relationship. Design/methodology/approach - This theoretically derived research model is empirically validated using survey data from 250 small- and medium-sized enterprises (SMEs) operating in Ghana. Findings - The study’s empirical findings indicate that passion for work strengthens the EO-performance relationship in dynamic market environments. Research limitations/implications - The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications - The study’s findings provide managers with a deeper understanding of how to achieve superior product firm performance, especially when firms are entrepreneurially oriented. The understanding of this issue can promote the development and maintenance of further entrepreneurial ventures in developing economies. Originality/value - The paper has a strong theoretical value because to the best of authors’ knowledge, this study is the first to examine the moderating role of passion for work on the relationship between EO and firm performance in dynamic environments.