Benchmarking strategic orientation and firm performance: An analysis of entrepreneurial orientation dimensions

Abstract

Learning from other firms is identified as an important resource for firm survival. Benchmarking is a learning mechanism that can aid firms in identifying superior organisational capabilities and behaviours among other firms. Firms that possess stronger benchmarking capabilities and are able to align their strategic posture with those of market leaders, may be more likely to enjoy greater firm performance. One strategic posture that has been shown to lead to higher performance is a firm’s entrepreneurial orientation (EO). Notwithstanding, the benchmarking of organisational entrepreneurial postures as a route to enhanced firm performance has received little attention. We empirically examine firm performance implications regarding deviation in key EO dimensions from those of top performing firms. Results suggest that the alignment of various dimensions of EO with those of top-performers are more outstanding than others and that the direction of deviation from the benchmark connotes performance implications. We discuss limitations and potential for future research.