Abstract:
Strategic entrepreneurship (SE) emphasises the complementary roles
played by entrepreneurship and strategic management in promoting firm
growth. This article adopts two dominant concepts from each field—
entrepreneurial orientation (EO) and dynamic capabilities (DCs)—to
investigate their interaction effects on firm performance (FP). It further
examines three contingencies—firm, market and product innovation—
that significantly affect the levels of EO and DCs that firms pursue.
This study analyses the influence of EO and DCs on performance using
hierarchical regression models. Interaction effects of EO and DCs
on FP demonstrate a positive relationship. This study found that DCs are
more critical for incumbent firms than for small firms. Both EO and DCs
enhance performance in dynamic markets. The EO increases performance
under radical product innovation, while DCs show no effects. This study
