The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions

Abstract

The performance implication of entrepreneurial orientation (EO) has been the subject of extensive scholarly discussions. However, its application to new venture firms remains unclear. This study examines the EO–performance relationship by drawing insights from the intention–behavior model to argue that the effect of EO on new venture performance is contingent on entrepreneurs’ actions (i.e., opportunity discovery, business networking, and institutional support seeking). This study tests this argument using structural equation modeling on a sample of 229 new ventures in a sub-Saharan African country. The findings show that entrepreneurial opportunity discovery fully mediates the relationship between EO and new venture performance and reveals how this indirect effect relationship is strengthened when business networking and institutional support increase. With these findings, the study advances knowledge in entrepreneurship research and provides insights into how entrepreneurial actions can enhance the relationship between EO and new venture performance.