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Casting a wider performance net: The role of entrepreneurial orientation in boosting overall firm stakeholder value

  • Ali M Shahzad (a1), William J Wales (a2), Mark P Sharfman (a3) and Christopher M Stein (a4)


This study offers a broader perspective on the effects of entrepreneurial orientation beyond its well-established implications for firm financial performance. Herein, it is suggested that through higher firm innovativeness, risk taking, and proactiveness entrepreneurial orientation contributes to an increase in the overall value accrued by the firm’s base of stakeholders. In doing so, we offer a broader perspective on the significance of an entrepreneurial orientation strategic posture for increasing stakeholder value beyond simply the financial value captured by firm shareholding stakeholders. Results from a comprehensive sample of 1,015 public US corporations indicate significant relationships between the three core dimensions of entrepreneurial orientation (innovativeness, risk taking, proactiveness) and stakeholder value, suggesting that how organizations behave entrepreneurially plays an important role in the firms generation of stakeholder value.


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