Empirical survey reveals refined entrepreneurial orientation dimensions in corporate firms, indicating that an innovation orientation improves measurement clarity for corporate outputs.
The nomological validity of the entrepreneurial orientation (EO) construct is re-examined as the current conceptualisation lacks precise articulation of the construct and its measurement. The validity concern is caused primarily by the innovation dimension. We adopt a critical lens to evaluate the dimensions and associated measures of EO and contribute to the ongoing conversation on EO, by empirically testing its indicators and measures. Data collected from 404 firms in Oman are analysed using a two-step approach, initially conducting EFA and CFA tests, followed by structural equation modelling. The results suggest that innovation orientation significantly improves the clarity of the innovation dimension and is more congruent with EO's conceptualisation. The study further clarifies that EO consists of enabling measures that contribute to the generation of entrepreneurial outputs in corporations. The five-factor EO construct is specified formatively and a comprehensive list of measures is drawn from multiple scales associated with EO research.
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Arshi et al. (2020) studied this question.
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