Does Entrepreneurial Orientation Always Pay Off? The Role of Resource Mobilization within and across Organizations

How can a firm harness its resources for releasing the potential of entrepreneurial orientation (EO)? In this study we investigate the moderating roles of both internal and network resource mechanisms on the relationship between EO and firm performance. Specifically, we argue that organizational structure (centralization and formalization) and coordination (knowledge integration), as well as firms’ connections with external stakeholders (business versus institutional networks) are critical for mobilizing resources to support EO activities. Using survey data in two Chinese industries, we find that centralization strengthens the positive relationship between EO and performance, while formalization weakens it. Interestingly, a firm’s business network also strengthens this relationship, while its institutional network dampens it. Finally, knowledge integration positively moderates this relationship.