Strategic orientation and firm risk

Abhi Bhattacharya*, Shekhar Misra, Hanieh Sardashti

*Bijbehorende auteur voor dit werk

    OnderzoeksoutputAcademicpeer review

    18 Citaten (Scopus)
    143 Downloads (Pure)


    Entrepreneurial orientation (EO) and market orientation (MO) have received substantial conceptual and empirical attention in the marketing and management literature and both orientations have consistently been linked to stronger financial performance. Yet the way in which market-oriented firms seek to achieve superior rents is substantively different from that of entrepreneurially oriented firms which could lead to differential impacts of EO and MO on firm risk. In this study, the authors employ a text mining technique to assess firms' EO and MO and examine the impact of these two strategic orientations on shareholder risk outcomes. The results show that while EO increases idiosyncratic risk, MO decreases it. However, only EO decreases systematic risk. Overall, the results of this study demonstrate that a firm's decisions regarding strategic orientation should be examined in light of both likely risks and returns in order to make appropriate resource allocation decisions. (C) 2019 Elsevier B.V. All rights reserved,

    Originele taal-2English
    Pagina's (van-tot)509-527
    Aantal pagina's19
    TijdschriftInternational Journal of Research in Marketing
    Nummer van het tijdschrift4
    Vroegere onlinedatum29-jan-2019
    StatusPublished - dec-2019

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