Modeling Entrepreneurial Orientation: Conceptualization and Measurement Issues. (Yamini, R., & Rönkkö, M. , 2022).
Entrepreneurial Orientation (EO) is one of the most commonly used constructs in entrepreneurship research. Yet, there are a number of open issues related to conceptualization and measurement of EO. EO is commonly conceptualized or operationalized with the help of three other constructs, innovativeness, proactiveness and risk-taking. We argue that this practice is problematic and hinders the development of EO as an independent construct. We start by analyzing the link between EO and the three dimensions on the conceptual level. Thereafter, we analyze the empirical practice of specifying EO as a formative variable consisting of the three dimensions. We do so by replicating some of the key studies and meta-analyzing a set of EO studies. Our analysis shows that the practice of combining the three dimensions as a single variable is neither conceptually nor empirically justified because innovativeness, proactiveness, and risk-taking have unique performance effects independently of EO. We conclude that the three dimensions should be analyzed separately. Doing so would also allow EO to develop more freely as an independent construct.
Keywords: Entrepreneurial Orientation, formative measurement, multidimensional construct, proportionality constraint, measurement, meta-analysis