Entrepreneurial Orientation and Performance: The Effect of Organizational Commitment and Budgetary Support
Advances in Accounting Behavioral Research
ISBN: 978-1-80455-799-0, eISBN: 978-1-80455-798-3
Publication date: 13 March 2023
Abstract
The objective of the study is to understand the relationship between entrepreneurial orientation (EO), employers' organizational commitment to their employees (OCE), employees' perception of the adequacy of budgetary resources (BRs), and firm performance in Malaysian and Chilean firms. A survey of 165 managers finds that EO has a significant positive relationship with performance. Additionally, the perceptions about the adequacy of the BR have a significant positive effect on performance. And in the Chilean subsample, the OCE interacts positively with perceptions of budget resource adequacy to affect the firm performance. The total effect of EO on performance is similar across both countries despite the EO being higher in Malaysia and perceptions of budget resource adequacy being higher in Chile. The study highlights the contribution to the literature on the EO – performance relationship – and emphasizes the importance of providing adequate resources to enhance the psychological safety of employees working in less developed countries.
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Acknowledgements
Acknowledgments
We acknowledge and thank David Cardemartori and Orlando Gonzales Daniel for the help they provided in translating the survey instrument to Spanish and in collecting the Chilean data. Additionally, we would like to thank Monash University Malaysia – School of Business and Pontificia Universidad Catolica Valparaíso – Escuela de Comercio for their financial support.
We thank the two reviewers for their helpful comments, and the editor for giving us the opportunity to extensively revise and resubmit the chapter.
Citation
Mahenthiran, S., Mackoy, R., Terpstra-Tong, J.L.Y. and Morales, L.J. (2023), "Entrepreneurial Orientation and Performance: The Effect of Organizational Commitment and Budgetary Support", Karim, K.E. (Ed.) Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 26), Emerald Publishing Limited, Leeds, pp. 169-194. https://doi.org/10.1108/S1475-148820230000026007
Publisher
:Emerald Publishing Limited
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