The Impact of Entrepreneurial Orientation and Service-dominant Orientation on Performance Outcomes: Measuring their Individual Impact and Searching for the Optimal Configuration

Abstract

The comparative and combined impact of Entrepreneurial Orientation (EO) and Service-Dominant (S-D) Orientation on performance outcomes has yet to be explored by the current strategic management and strategic marketing literature. This study aims to find the optimal configuration of EO and S-D orientation, in terms of impact on financial-, market- and innovation performance. Neither orientation have a proven universal impact on performance, thus this study also aims to contribute to the existing body of research in regards to the individual impact of these orientations on performance. Furthermore, this study aims to explore what internal and external factors that might moderate the potential relationships between the EO/S-D orientation combinations and performance. Based on EO and S-D orientation, this study created a matrix with four different outcomes, where high or low levels of EO and S-D orientation determined the outcome. The four outcomes, or configurations, were analyzed in a comparative manner, across different environmental contexts. In a sample of 157 Norwegian and Danish firms, this study finds that both EO and S-D orientation have a positive significant impact on the chosen performance outcomes. Furthermore, this study provides the first empirical insight to the combined an comparative impact of EO and S-D orientation, where high levels of both orientations proves to be the optimal configuration, outperforming the others across different market contexts.