Entrepreneurial Orientation and International New Entry: The Moderating Role of Autonomy and Structures in Subsidiaries

Henri Hakala, Charlotta Sirén and Joakim Wincent

Journal of Small Business Management, 2016, vol. 54, issue S1, 90-112

Abstract: We study how the entrepreneurial orientation (EO) of subsidiaries influences international initiatives—new entries originating from a subsidiary that go beyond the local environment of the subsidiary. Building on structural contingency theory, we expect to find that the effect of EO is contingent on the structural conditions of decision‐making autonomy and the subsidiary decision‐making structure. Our results from 294 subsidiaries confirm that decision‐making autonomy and internal structures are important boundary conditions delimiting the effectiveness of EO in terms of international new entry. Although autonomy is highly important for international new entries, when it is restricted, formal rather than organic structures benefit new‐entry initiatives.

Date: 2016
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DOI: 10.1111/jsbm.12294

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