Entrepreneurial orientation and performance: the effect of organizational commitment and budgetary support

Sakthi Mahenthiran, Robert Mackoy, Jane L.Y. Terpstra-Tong, Loreto J. Morales

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review

Abstract

The objective of the study is to understand the relationship between entrepreneurial orientation (EO), employers’ organizational commitment to their employees (OCE), employees’ perception of the adequacy of budgetary resources (BRs), and firm performance in Malaysian and Chilean firms. A survey of 165 managers finds that EO has a significant positive relationship with performance. Additionally, the perceptions about the adequacy of the BR have a significant positive effect on performance. And in the Chilean sub-sample, the OCE interacts positively with perceptions of budget resource adequacy to affect the firm performance. The total effect of EO on performance is similar across both countries despite the EO being higher in Malaysia and perceptions of budget resource adequacy being higher in Chile. The study highlights the contribution to the literature on the EO – performance relationship – and emphasizes the importance of providing adequate resources to enhance the psychological safety of employees working in less developed countries.

Original languageEnglish
Title of host publicationAdvances in Accounting Behavioral Research
EditorsKhondkar E. Karim
Place of PublicationBingley UK
PublisherEmerald Group Publishing Limited
Chapter26
Pages169-194
Number of pages26
Edition1st
ISBN (Electronic)9781804557983, 9781804558003
ISBN (Print)9781804557990
DOIs
Publication statusPublished - 2023

Publication series

NameAdvances in Accounting Behavioral Research
Volume26
ISSN (Print)1475-1488

Keywords

  • budgetary resource adequacy
  • budgetary support
  • business performance
  • employee psychological safety
  • entrepreneurial orientation
  • Organizational commitment

Cite this