Effect of International Entrepreneurial Orientation on the Organisational Performance of Brazilian Exporting Companies

Rodrigo Marques de Almeida Guerra and Roberta Gizelle Macêdo Alves Farinha

Chapter 3 in Contemporary Entrepreneurship Issues in International Business, 2021, pp 59-91 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Although international entrepreneurial orientation (IEO) is a topic widely discussed in national and international journals, little is known about its relationship with organisational performance (OP), particularly of exporting companies located in emerging economies. Research involving the theory of Resource-based Vision (RBV) may depend on the context in which companies operate. We measure the strength of the dimensions of innovativeness, proactivity and risk-taking in relation to the variables’ growth in sales and profitability of companies located in the states of the North and Northeast regions of Brazil, which is an emerging economy. The data were collected through a questionnaire completed by 121 companies registered in the database of the MDIC (Ministry of Economy, Development, Industry and Commerce) related to three sectors of the National Classification of Economic Activity (CNAE) The five-point Likert scale involved the dimensions of IEO and organisational performance. The data were analysed using descriptive statistics, correlation, confirmatory factor analysis and modelling of structural equations. The results of this study have generated several practical implications for managerial decision-making due to the fact that the regions covered have strategic resources, export potential and diversity of human resources. This research contributed to fill the literature gap in the relationship between the dimensions of IEO and the OP of exporting companies located in an emerging-economy country. The results revealed a positive and significant effect for seven of the nine hypotheses. Only the links between innovativeness and profitability, and risk-taking and profitability have not been confirmed. The other hypotheses about innovativeness, proactivity, sales growth, profitability and stakeholders were statistically supported. Empirical evidence of the effect of the dimensions of IEO on OP reinforces the results of previous research, in addition to expanding the scope of investigation for future research.

Keywords: Entrepreneurship; International Entrepreneurship; International Business; Early Internationalizing Firms; Multinational Enterprises; New Ventures; Start-Ups; Social Entrepreneurship; Intrapreneurship; Institutional Environment; Non-Market Strategies (search for similar items in EconPapers)
JEL-codes: F23 L26 L31 M1 M16 (search for similar items in EconPapers)
Date: 2021
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