How entrepreneurial orientation impacts sales growth | The Oxford Review

How entrepreneurial orientation impacts sales growth

Research Briefing

Keywords: entrepreneurship, entrepreneurial orientation, sales growth, sales, absorptive capacity, learning, strategic learning, organisational agility

There has been a huge amount of interest in the concept of entrepreneurial orientation and its ability to increase, for example:

  • Innovation and innovation performance and behaviours
  • Creativity
  • Sales performance
  • Experimentation and risk-taking
  • General individual and organisational performance
  • Speed of response
  • Organisational agility and adaptive capacity

Recently, studies have started to show that the relationship between entrepreneurial orientation and its outcomes is complex and anything but direct and linear. In other words, entrepreneurial orientation on its own is not a sufficient and necessary factor for many of the outcomes observed. The impact entrepreneurial orientation has appears to be facilitated by a number of factors. Previous studies have found that:

  • resources, particularly financial resources
  • transformational leadership
  • resource planning, organisation and adaptation capability
  • organisational and strategic learning, including absorptive capacity for the rate

at which individuals and the organisation can learn all appear to have an effect on the impact that entrepreneurial orientation has.

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