Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects

Li Chen, Shaoming Zou, Hui Xu () and Yiwen Chen
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Li Chen: University of Missouri
Shaoming Zou: University of Missouri
Hui Xu: Nankai University
Yiwen Chen: University of Missouri

Management International Review, 2020, vol. 60, issue 1, No 5, 123-148

Abstract: Abstract Despite its importance to business performance, the role of Entrepreneurial Orientation (EO) in multinational corporations (MNCs) is under-researched. This study investigates the drivers of EO and its performance outcome in the context of large MNCs. The authors theorize that an MNC’s organizational characteristics drive the formation of its EO and an MNC’s EO affects its performance in the global market under certain contingency conditions. Based on a survey of large MNCs, the authors find that an MNC’s EO is positively affected by its technological flexibility and subsidiary cooperation, and negatively influenced by centralization of its organizational structure. In addition, EO’s positive effect on an MNC’s performance is weakened by its international experience. This study advances the literature by developing and empirically supporting a theory of EO in large MNCs. The results also have significant implications for MNCs that consider adopting EO to improve their performance in the global market.

Keywords: Multinational corporations; Entrepreneurial orientation; Technological flexibility; Subsidiary cooperation; International experience (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s11575-019-00397-4

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