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This study empirically investigates the relationship between collective entrepreneurial capability and small business performance in different environmental conditions. A hierarchical multiple regression analysis of data from more than 100 small businesses shows that the collective entrepreneurial capability of a small business is positively associated with its competitive performance. Among the three investigated environmental dimensions, environmental dynamism is found to have a positive interaction effect with collective entrepreneurial capability on small business performance. Environmental hostility is found to have a negative interaction effect with collective entrepreneurial capability on small business performance. No interaction effect is found between environmental heterogeneity and collective entrepreneurial capability. Implications of this study are discussed.
Yan et al. (Thu,) studied this question.
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