Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact
Abstract
:1. Introduction
- RQ1. What is the effect of EO on ITC?
- RQ2. What is the effect of ITC on FP?
- RQ3. What are the separate and joint effects of EO and ITC on FP?
2. Literature Review and Hypotheses
2.1. Theoretical Framework
2.2. Firm Performance
2.3. Entrepreneurial Orientation and Firm Performance
2.4. Information Technology Capabilities, Entrepreneurial Orientation, and Firm Performance
3. Methods
3.1. Population, Sample, and Data Collection
3.2. Measurement Scales
3.3. Variables
Construct | Authors | Context | |
---|---|---|---|
EO CA 1 = 0.890 | Covin and Slevin, 1989 [40] and Ciampi et al., 2021 [14] | Business model innovation in the United Kingdom | |
FP CA = 0.899 | Shen et al., 2020 [57] | Performance of manufacturing companies in China | |
MITC CA = 0.90 | Adapted from Han et al., 2008 [59] | Erkmen et al., 2020 [5] | Sustainable IT in Turkey |
TITC CA = 0.93 | |||
HCS CA = 0.92 | Adapted from González-Benito, 2007 [60] |
3.4. Statistical Techniques
4. Results
4.1. Measurement Model Evaluation
4.2. Second-Order Construct Evaluation
4.3. Structural Model
4.4. Mediation Result
5. Discussion
6. Conclusions
6.1. Theoretical Implications
6.2. Managerial Implications
6.3. Limitations and Future Research Areas
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Respondent Variables | Frequency | Percentage (%) |
---|---|---|
Age | ||
<30 | 35 | 22.3% |
30–39 | 28 | 17.8% |
40–49 | 46 | 29.3% |
50–59 | 34 | 21.7% |
>60 | 14 | 8.9% |
Gender | ||
Male | 104 | 66.2% |
Female | 53 | 33.8% |
Position in the Company | ||
General Manager/CEO | 62 | 39.5% |
Area Manager | 25 | 15.9% |
Area Supervisor | 29 | 18.5% |
Mid-Level Executive | 28 | 17.8% |
Other Managerial Positions | 13 | 8.3% |
Industry Experience | ||
2 to 3 years | 23 | 14.6% |
4 to 6 years | 19 | 12.1% |
More than 6 years | 111 | 70.7% |
Less than one year | 4 | 2.5% |
Company Variables | Frequency | Percentage (%) |
Industry | ||
Mining and Engineering Solutions | 84 | 53.5% |
Trade and General Services | 73 | 46.5% |
Annual Sales | ||
At least 2400–25,000 UF | 81 | 51.6% |
26,000 UF–100,000 UF or more | 76 | 48.4% |
City | ||
Antofagasta | 64 | 40.8% |
Calama | 28 | 17.8% |
Mejillones | 17 | 10.8% |
Other Communes II Region | 48 | 30.6% |
Construct | Items | Loadings | CA | Rho_a | Rho_c | AVE |
---|---|---|---|---|---|---|
MITC | We understand the IT needs and expectations within our company (MITC1). | 0.754 | 0.921 | 0.944 | 0.940 | 0.759 |
We have the capacity to meet the IT needs and expectations within our company (MITC2). | 0.885 | |||||
We have the ability to leverage IT as a core strategic competence (MITC3). | 0.920 | |||||
The IT strategy is aligned with the business strategy (MITC4). | 0.892 | |||||
We have the capability to continuously update the IT strategy in accordance with changes in the business environment (MITC5). | 0.894 | |||||
TITC | We possess IT technical knowledge and skills (TITC1). | 0.889 | 0.927 | 0.937 | 0.944 | 0.773 |
We understand the role of IT in improving business performance (TITC2). | 0.873 | |||||
We have our scheme for IT standardization (TITC3). | 0.893 | |||||
We have the capacity to integrate IT (TITC4). | 0.899 | |||||
We understand IT trends (TITC5). | 0.839 | |||||
HCS | In our company, employees undergo training programs on new software and systems (HCS1). | 0.902 | 0.918 | 0.927 | 0.942 | 0.802 |
In our company, employees undergo training programs on new equipment and tools (HCS2). | 0.894 | |||||
In our company, we prefer to hire qualified individuals who can effectively use new technologies and systems (HCS3). | 0.901 | |||||
In our company, we emphasize the use of information and communication technologies to support communication flow with our customers and suppliers (HCS4). | 0.884 | |||||
EO | In the last two years, our company has typically initiated actions to which competitors later responded (EO1). | 0.710 | 0.712 | 0.750 | 0.818 | 0.531 |
In the last two years, our company has been very often the first to introduce new products/services, administrative techniques, and operational technologies (EO2). | 0.790 | |||||
In the last two years, our company has had a strong inclination towards high-risk projects (with chances of very high returns) (EO3). | 0.705 | |||||
FP | Our company has experienced considerable growth in customer satisfaction over the last two years (FP1). | 0.852 | 0.901 | 0.906 | 0.927 | 0.718 |
Our company has experienced considerable growth in its competitive position in the market over the last two years (FP2). | 0.905 | |||||
Our company has seen significant improvements in product/service quality over the last two years (FP3). | 0.886 | |||||
Our company has seen significant improvement in product/service innovation over the last two years (FP4). | 0.746 | |||||
Our company has experienced considerable growth in its overall financial performance over the last two years (FP5). | 0.839 |
HCS | MITC | TITC | FP | EO | |
---|---|---|---|---|---|
HCS | 0.895 | ||||
MITC | 0.711 | 0.871 | |||
TITC | 0.692 | 0.839 | 0.879 | ||
FP | 0.397 | 0.563 | 0.458 | 0.847 | |
EO | 0.547 | 0.570 | 0.509 | 0.586 | 0.729 |
Second Order Construct | Items | Loads | AVE | CR | CA | Rho_A |
---|---|---|---|---|---|---|
ITC | MITC | 0.940 | 0.899 | 0.909 | 0.937 | 0.832 |
TITC | 0.924 | |||||
HCS | 0.870 |
ITC | FP | EO | |
---|---|---|---|
ITC | |||
FP | 0.572 | ||
EO | 0.704 | 0.703 |
ITC | FP | EO | |
---|---|---|---|
ITC | 0.912 | ||
FP | 0.523 | 0.847 | |
EO | 0.592 | 0.587 | 0.729 |
Hypothesis | Path | Path Coefficient | p-Value | Result |
---|---|---|---|---|
H1 | EO → FP | 0.426 | *** | Supported |
H2 | EO → ITC | 0.592 | ** | Supported |
H3 | ITC → FP | 0.271 | ** | Supported |
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Campos-Núñez, F.; Serrano-Malebrán, J. Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact. Appl. Sci. 2024, 14, 7243. https://doi.org/10.3390/app14167243
Campos-Núñez F, Serrano-Malebrán J. Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact. Applied Sciences. 2024; 14(16):7243. https://doi.org/10.3390/app14167243
Chicago/Turabian StyleCampos-Núñez, Franco, and Jorge Serrano-Malebrán. 2024. "Enhancing Firm Performance: How Entrepreneurial Orientation and Information Technology Capability Interact" Applied Sciences 14, no. 16: 7243. https://doi.org/10.3390/app14167243