A comparative analysis of the entrepreneurial orientation/growth relationship in service firms and manufacturing firms

Abstract

This article builds on the recently increasingly mentioned notion that entrepreneurship in the service sector is a worthwhile, but clearly underresearched topic. Using a sample of 1,612 small- and medium-size enterprises from the four German-speaking countries Germany, Austria, Switzerland, and Liechtenstein, and using structural equation modeling, this article finds that service firms have a significantly higher entrepreneurial orientation (EO) than manufacturing firms – both on the overall level as well as for each of the three sub-categories proactiveness, innovativeness, and risk-taking. With regards to the positive relationship between a firm's EO and its growth aspirations, nevertheless, no significant differences could be identified. Accordingly, this study shows that EO is a strategic orientation of highest value for service firms as well, under the premise of growth-orientation.

Keywords:

• entrepreneurship
• growth
• entrepreneurial orientation

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A comparative analysis of the entrepreneurial orientation/growth relationship in service firms and manufacturing firms

Notes

1. Liechtenstein and Switzerland are part of a joint customs, trade, and monetary union. Therefore, companies in Liechtenstein also have a Swiss postal code and in this study are part of the same company database.