TITLE:
Entrepreneurial Orientation and Financial Resources Availability as Determinants of Firms’ Growth
AUTHORS:
Mario Mustilli, Eugenio D’Angelo, Francesco Campanella, Domenico Graziano
KEYWORDS:
Entrepreneurial Orientation, Financial Constraints, Growth
JOURNAL NAME:
Modern Economy,
Vol.8 No.2,
February
24,
2017
ABSTRACT: The purpose of this empirical paper is to
investigate the determinants of firms’ growth during different financial
cycles. In particular, we
analyze the relationship between firms’ growth and their entrepreneurial
orientation. In addition, we
investigate how firms’ financial constraints moderate the relation between
entrepreneurial orientation and growth before and during financial crisis. We
test our hypotheses with an OLS regression model run on a sample of 382 European listed firms between
2003 and 2012. We found that entrepreneurial orientation is a determinant of firms’ growth and that
during the period of crisis this relation is slightly exacerbated. Furthermore, we found that financial
constraints only slightly attenuate the entrepreneurial orientation prediction of growth, which may mean
that when firm is more financial constraint could be forced to increase its
entrepreneurial orientation in order to maintain a higher growth rate.