Building Dynamic Capabilities through Entrepreneurial Orientation

Mohammed Ibrahim Aminu, Ph. D

Department of Business Administration,

Ahmadu Bello University, Zaria-Nigeria

miaminuscholar@yahoo.com

Abstract


Although entrepreneurial orientation has been conceptualized and empirically proven as a determinant of small firms’ performance in hyper-competitive environments, this relationship is not really direct because intangible resources alone cannot determine significant performance in such rapidly changing environments. Consequently, entrepreneurial orientation is an antecedent of dynamic capabilities that has been theorized as the reconfiguration processes of the firms’ existing resources to determine superior performance in rapidly changing and unpredicted environments. Thus, the purpose of this study is to investigate the effects of entrepreneurial orientation’s dimensions on dynamic capabilities’ phases of small firms in rapidly changing environment. Usable data were gathered from 302 sampled small enterprises in Nigeria and analyzed using SmartPLS3 statistical software for 2nd generation analysis. The result portrays that innovativeness, risk-taking, and proactiveness as dimensions of entrepreneurial orientation positively affect the development of sensing, learning, integrating, and coordinating capabilities. Full Text

Keywords: Superior performance, entrepreneurial orientation, dynamic capabilities, rapid changing environment, small firms.

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