Measuring Entrepreneurial Orientation in Developing Economies: Scale Development and Validation

Asif Ali, Ashok Aima, Jaya Bhasin and Robert D. Hisrich

Jindal Journal of Business Research, 2021, vol. 10, issue 2, 147-162

Abstract: Entrepreneurial orientation (EO) refers to entrepreneurial activities of established and existing firms. It is different from individual entrepreneurial orientation (Popov et al., 2019, Education + Training , vol. 61, pp. 65–78). EO refers to the processes, practices, and decision-making activities that lead to new venture creation (Walter et al., 2006, Journal of Business Venturing , vol. 21, pp. 541–567). The EO scale by Lumpkin and Dess (1996, Academy of Management Review , vol. 21, pp. 135–172) consists of innovativeness, proactiveness, risk-taking, competitive aggressiveness, and autonomy. This scale is widely used in literature with major drawback of it being developed and evaluated in a developed economy (the USA) on large corporations. Very little literature is available with reference to validation of EO scales in developing economies, particularly India where firms are generally small. New Comprehensive Entrepreneurial Orientation Scale (CENTORES) has been developed and validated by adding additional dimension of strategic flexibility, which is the novelty of the present study. Data were collected using a survey instrument comprising of 19 items. The scientific scale development procedure as suggested by Schwab, (1980) was followed, first an exploratory factor analysis (EFA) was done to explore factors and later confirmatory factor analysis (CFA) was done to confirm factors (using SPSS and Amos). Six stable factors emerged from EFA which were subsequently confirmed through CFA. The measurement model confirmed the factors with good model fit indices as suggested by Hair et al. (2014). The model has CMIN/df = 2.237, CFI = 0.917, GFI = 0.928, NFI = 0.882, and RMSEA = 0.052.

Keywords: Entrepreneurial orientation; strategic flexibility; innovativeness; risk-taking; autonomy; developing economies (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/22786821211045178 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jjlobr:v:10:y:2021:i:2:p:147-162

DOI: 10.1177/22786821211045178

Access Statistics for this article

More articles in Jindal Journal of Business Research
Bibliographic data for series maintained by SAGE Publications ().