Entrepreneurial orientation and performance in young firms: The role of human resource management

This article examines the effects of managerial practice and philosophy variables – high-performance work systems (HPWS) and partnership philosophy – on the relationship between entrepreneurial orientation (EO) and sales growth. The results from a sample of 119 young high-technology firms indicate a non-significant relationship between EO and firm growth. However, firms combining HPWS or partnership philosophy with EO realized significantly higher levels of growth. Specifically, the results suggest that the promise of EO as a means of enhancing the growth trajectories of young firms depends on the extent to which these organizations embrace and establish certain human resource practices and philosophies.