Abstract:
This study empirically investigates the relationship between collective
entrepreneurial capability and small business performance in different
environmental conditions. A hierarchical multiple regression analysis
of data from more than 100 small businesses shows that the collective
entrepreneurial capability of a small business is positively associated
with its competitive performance. Among the three investigated
environmental dimensions, environmental dynamism is found to have a
positive interaction effect with collective entrepreneurial capability on
small business performance. Environmental hostility is found to have
a negative interaction effect with collective entrepreneurial capability
on small business performance. No interaction effect is found between environmental heterogeneity and collective entrepreneurial capability.
Implications of this study are discussed.