India’s entrepreneurial landscape: unpacking the relationship between entrepreneurial orientation and business performance

Abstract

Purpose The aim of this paper is to provide a unique perspective on entrepreneurship by examining how different ways of understanding entrepreneurial orientation (EO) affect business performance (BP). The study uses a five-dimensional approach to understand EO’s relationship with BP. Design/methodology/approach A personal survey of key informants (who have decision-making power in their firm), one each from 550 North Indian firms has been conducted. The hypotheses were tested using confirmatory factor analysis and structural equation modeling. Findings The results indicate that both uni-dimensional and multi-dimensional conceptualizations of EO are equally valid and have a significant impact on BP. The study highlights the contextual nature of the relationship between EO and BP. Practical implications This study supports a comprehensive five-dimensional approach to EO, benefiting researchers and management practitioners. It validates an integrated measurement of BP and advances entrepreneurship theories, enabling broader generalizations for improved decision-making and strategy development. Originality/value The study is relevant for researchers and management practitioners. This study supports the five-dimensional conceptualization of EO and reveals the relevance of both uni-dimensional and multi-dimensional conceptualizations of EO. The study also lends support to the integrated approach of BP measurement. The results may also help to generalize entrepreneurship theories.