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THE ROLE OF ENTREPRENEURIAL ORIENTATION IN ACHIEVING ORGANIZATION PERFORMANCE THROUGH BUSINESS MODEL INNOVATION AND ASSET RELATIONAL COLLABORATION
Corresponding Author(s) : Sandra Dewi
Humanities & Social Sciences Reviews,
Vol. 6 No. 2 (2018)
Abstract
Purpose of the study: This study examines the role of entrepreneurial orientation in achieving the best performance of the firm through the mediation of business model innovation and strategic relational assets as intangible assets that are inimitable.
Methodology: The study was conducted in 105 private hospitals in Indonesia, affected by the reform of the regulation and influenced by digital disruption, which triggered the disruptive change. This study used a quantitative method and processed by Structural Equation Modelling program for quantitative data analysis.
Main Findings: The results of this study concluded that the entrepreneurial orientation of the hospital has a significant positive impact on the achievement of organizational performance, either directly or with the mediation of business model innovation and the collaboration between hospital management and the physicians.
Applications of this study: This study proved to be a critical determinant for the business model innovation and the growth of hospital performance.
Novelty/Originality of this study:As the theoretical contribution of this study is to enrich the development of entrepreneurial orientation concept as a part of organizational entrepreneurship which emphasizes the relationship of the stakeholders of an industry, through integration with some concepts and theories in strategic management such as resource-based theory, business model innovation and stakeholder theory.
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1. Al-Amin, M., Weech-Maldonado, R., & Pradhan, R. (2013) Hospital – physician relationships: Implication for professional service firms literature. Advances in Health Care Management, 15, 165-184.
2. Assink, M. (2006) Inhibitors of disruptive innovation capability. European Journal of Innovation Management, 9(2), 215-233.
3. Austin, J., Bentkover, J., &Chait, L. (2016) Leading strategic change in an era of healthcare transformation, Management for Professionals. Switzerland: Springer International Publishing.
4. Barringer, B.R., &Bluedorn, A.C. (1999) The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal, 20(5), 421—444.
5. Bouncken, R.B., Lehman, C., &Fellnhofer, K (2016) The role of entrepreneurial orientation and modularity for business model innovation in service company. International Journal Entrepreneurial Venturing, 8(3) 237-260.
6. Burgelman, R. A. (1983) Corporate entrepreneurship and strategic management: Insight from process study. Management Science, 29(12), 1349-1364.
7. Chen, M. J., Miller, D. (2015) Reconceptualizing competitive dynamics: A multidimensional framework. Strategic Management Journal, 36, 758-775.
8. Christensen, C. M., &Overdorf, M. (2000) ‘Meeting the challenge of disruptive change’, Harvard Business Review, 78, 2, 66–77. Christensen, C.M., Anthony, C. D., & Roth, E. A ( 2004 ) Seeing what’s next. Using the theory of innovation to predict industry change. Boston, Massachusetts: Harvard Business Schools Press.
9. Christensen, C. M., Grossman, J. H. and Hwang, J. (2009) The innovator’s prescription: A disruptive solution for health care, New York: McGraw-Hill.
10. Claus, T. (2017) Measuring business model innovation: Conceptualization, scale development and proof of performance. R & D Management, 47(3), 385-403.
11. Clauss, T. (2015) Measuring Business Model Innovation: Conceptualization, scale development and proof of performance. R & D Management, doi:10.1111/radm.12186, 1-31
12. Covin, J.G., & Lumpkin, G. T. (2011) Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship: Theory & Practice 35(5): 855–872.
13. Covin., J.G., &Slevin, D.P. (1991) A conceptual model of entrepreneurial a firm behavior. Entrepreneurial Theory and Practice, 14(4 ), 35-50.
14. Dobrzykowsky, D.D., Callaway, S.K., &Vonderembse, M. A. (2015) Examining pathways from innovation orientation to patient satisfaction. Decision Sciences, 46(5), 863-899.
15. Douglas, T.J., &Ryman., J.A. (2003) Understanding competitive advantage in general hospital industry: evaluating strategic competencies. Strategic Management Journal, 24, 333-347.
16. George, B.A., & Marino, L. (2011) The Epistemology of orientation entrepreneurial:Conceptual formation, modeling, andoperationalization. Entrepreneurship Theory and Practice, 35(5), 989-1024.
17. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E., &Tatham, R. L. (2006) Multivariate data analysis. (Vol. 6). Upper Saddle River, NY: Pearson Prentice Hall.
18. Hinz, V., &Ingerfurth, S. (2013) Does ownership matter under challenging conditions?: On the relationship between organizational entrepreneurship and performance in the healthcare sector. Public Management Review,15(7), 969-991.
19. Hitt, MA, Ireland, R. D., Sirmon, D. G., &Trahms, C.A. (2011) Strategic entrepreneurship: Creating value for individuals, organizations and society. Academy of Management Executive, 25(2), 57-75.
20. Ireland, R. D., Covin, J. G., Kuratko, D. F. (2009) Conceptualizing corporate entrepreneurship strategy. Entrepreneurship Theory and Practice, 33(1), 19-46.
21. Johnson, M. W., Christensen, C. M., &Kagermann, H. (2008): Reinventing your business model. Harvard Business review,Desember, 58-67.
22. Karimi, J., & Walter, Z. (2015) Corporate entrepreneurship, disruptive business model innovation adoption, and its performance: The case of the newspaper industry. Long Range Planning, 49(3), 342-260.
23. Kuratko, D.F. (2009) The entrepreneurial imperative of the 21st century. Business Horizons, 52(5), 421-428.
24. Miller, D. (2011) Miller (1983) revisited: A reflection on EO research and some suggestions for the
future. Entrepreneurship: Theory & Practice 35(5), 873–894.
25. Miller, D.( 1983 ) The correlates of entrepreneurial in three types of firms, Management Science, 26, 770-791.
26. Rasche, C., Margaria, T., & Floyd, B. D. (2017) Service model innovation in hospital: Beyond expert organizations. In M. A. Pfannstiel& C. Rasche (Ed.) Service business model innovation in healthcare and hospital management. Models, strategies, tools (pp.1-20). Cham, Switzerland : Springer International Publishing AG.
27. Rauch A, Wiklund .J., Lumpkin G.T., &Frese, M. (2009) Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory & Practice 33(3), 761–787.
28. Rauch, J. (2015) Disruptive entrepreneurship is transforming U.S. health care. Center of Effective Public Management, March, 1-19.
29. Rosenbusch, N., Rauch, A., & Bausch, A. (2011) The mediating role of entrepreneurial orientation in the task environment – Performance relationship: A meta – analysis. Journal of Management, 39(3), 633-659.
30. Ruelas-Gossi, A.,&Sull, D. N. ( 2006 ) Strategy orchestration: The key to agility on the global stage. Harvard Business Review, November 2006, 1-10.
31. Sharma, A. (1997) Professional as agent: Knowledge asymmetry in agency exchange. Academy of Management Review, 22(3), 758- 798.
32. Succi, M.J., Lee, S.Y., & Alexander, J.A. (1998) Trust between managers and physician in community hospitals: The effects of power over hospital decisions. Journal of Healthcare Management, 43(5), 397-414.
33. Vandekerckhove, W., &Dentchev, N. A. (2005) A network perspective on takeholdermanagement : Facilitating entrepreneurs in the discovery of opportunity. Journal of Business Ethics, 60, 221-232.
34. Wales, W. J. ( 2015 ) Entrepreneural orientation : A review and synthesis of promising research direction. International Small Business Journal, 34(1), 3-15.
35. Wales, W. J., Patel, P.C., Parida, P., &Kreiser, P.M. ( 2013 ) Non linear effects of entrepreneurial orientation on small firm performance: The moderating role of resource orchestration capabilities. Strategic Entrepreneurial. Journal, 7, 93-121.
36. Walter, A.,Auer, M., & Ritter T.( 2006 ) . The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of Business Venturing 21(4):541–567.
References
2. Assink, M. (2006) Inhibitors of disruptive innovation capability. European Journal of Innovation Management, 9(2), 215-233.
3. Austin, J., Bentkover, J., &Chait, L. (2016) Leading strategic change in an era of healthcare transformation, Management for Professionals. Switzerland: Springer International Publishing.
4. Barringer, B.R., &Bluedorn, A.C. (1999) The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal, 20(5), 421—444.
5. Bouncken, R.B., Lehman, C., &Fellnhofer, K (2016) The role of entrepreneurial orientation and modularity for business model innovation in service company. International Journal Entrepreneurial Venturing, 8(3) 237-260.
6. Burgelman, R. A. (1983) Corporate entrepreneurship and strategic management: Insight from process study. Management Science, 29(12), 1349-1364.
7. Chen, M. J., Miller, D. (2015) Reconceptualizing competitive dynamics: A multidimensional framework. Strategic Management Journal, 36, 758-775.
8. Christensen, C. M., &Overdorf, M. (2000) ‘Meeting the challenge of disruptive change’, Harvard Business Review, 78, 2, 66–77. Christensen, C.M., Anthony, C. D., & Roth, E. A ( 2004 ) Seeing what’s next. Using the theory of innovation to predict industry change. Boston, Massachusetts: Harvard Business Schools Press.
9. Christensen, C. M., Grossman, J. H. and Hwang, J. (2009) The innovator’s prescription: A disruptive solution for health care, New York: McGraw-Hill.
10. Claus, T. (2017) Measuring business model innovation: Conceptualization, scale development and proof of performance. R & D Management, 47(3), 385-403.
11. Clauss, T. (2015) Measuring Business Model Innovation: Conceptualization, scale development and proof of performance. R & D Management, doi:10.1111/radm.12186, 1-31
12. Covin, J.G., & Lumpkin, G. T. (2011) Entrepreneurial orientation theory and research: Reflections on a needed construct. Entrepreneurship: Theory & Practice 35(5): 855–872.
13. Covin., J.G., &Slevin, D.P. (1991) A conceptual model of entrepreneurial a firm behavior. Entrepreneurial Theory and Practice, 14(4 ), 35-50.
14. Dobrzykowsky, D.D., Callaway, S.K., &Vonderembse, M. A. (2015) Examining pathways from innovation orientation to patient satisfaction. Decision Sciences, 46(5), 863-899.
15. Douglas, T.J., &Ryman., J.A. (2003) Understanding competitive advantage in general hospital industry: evaluating strategic competencies. Strategic Management Journal, 24, 333-347.
16. George, B.A., & Marino, L. (2011) The Epistemology of orientation entrepreneurial:Conceptual formation, modeling, andoperationalization. Entrepreneurship Theory and Practice, 35(5), 989-1024.
17. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E., &Tatham, R. L. (2006) Multivariate data analysis. (Vol. 6). Upper Saddle River, NY: Pearson Prentice Hall.
18. Hinz, V., &Ingerfurth, S. (2013) Does ownership matter under challenging conditions?: On the relationship between organizational entrepreneurship and performance in the healthcare sector. Public Management Review,15(7), 969-991.
19. Hitt, MA, Ireland, R. D., Sirmon, D. G., &Trahms, C.A. (2011) Strategic entrepreneurship: Creating value for individuals, organizations and society. Academy of Management Executive, 25(2), 57-75.
20. Ireland, R. D., Covin, J. G., Kuratko, D. F. (2009) Conceptualizing corporate entrepreneurship strategy. Entrepreneurship Theory and Practice, 33(1), 19-46.
21. Johnson, M. W., Christensen, C. M., &Kagermann, H. (2008): Reinventing your business model. Harvard Business review,Desember, 58-67.
22. Karimi, J., & Walter, Z. (2015) Corporate entrepreneurship, disruptive business model innovation adoption, and its performance: The case of the newspaper industry. Long Range Planning, 49(3), 342-260.
23. Kuratko, D.F. (2009) The entrepreneurial imperative of the 21st century. Business Horizons, 52(5), 421-428.
24. Miller, D. (2011) Miller (1983) revisited: A reflection on EO research and some suggestions for the
future. Entrepreneurship: Theory & Practice 35(5), 873–894.
25. Miller, D.( 1983 ) The correlates of entrepreneurial in three types of firms, Management Science, 26, 770-791.
26. Rasche, C., Margaria, T., & Floyd, B. D. (2017) Service model innovation in hospital: Beyond expert organizations. In M. A. Pfannstiel& C. Rasche (Ed.) Service business model innovation in healthcare and hospital management. Models, strategies, tools (pp.1-20). Cham, Switzerland : Springer International Publishing AG.
27. Rauch A, Wiklund .J., Lumpkin G.T., &Frese, M. (2009) Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory & Practice 33(3), 761–787.
28. Rauch, J. (2015) Disruptive entrepreneurship is transforming U.S. health care. Center of Effective Public Management, March, 1-19.
29. Rosenbusch, N., Rauch, A., & Bausch, A. (2011) The mediating role of entrepreneurial orientation in the task environment – Performance relationship: A meta – analysis. Journal of Management, 39(3), 633-659.
30. Ruelas-Gossi, A.,&Sull, D. N. ( 2006 ) Strategy orchestration: The key to agility on the global stage. Harvard Business Review, November 2006, 1-10.
31. Sharma, A. (1997) Professional as agent: Knowledge asymmetry in agency exchange. Academy of Management Review, 22(3), 758- 798.
32. Succi, M.J., Lee, S.Y., & Alexander, J.A. (1998) Trust between managers and physician in community hospitals: The effects of power over hospital decisions. Journal of Healthcare Management, 43(5), 397-414.
33. Vandekerckhove, W., &Dentchev, N. A. (2005) A network perspective on takeholdermanagement : Facilitating entrepreneurs in the discovery of opportunity. Journal of Business Ethics, 60, 221-232.
34. Wales, W. J. ( 2015 ) Entrepreneural orientation : A review and synthesis of promising research direction. International Small Business Journal, 34(1), 3-15.
35. Wales, W. J., Patel, P.C., Parida, P., &Kreiser, P.M. ( 2013 ) Non linear effects of entrepreneurial orientation on small firm performance: The moderating role of resource orchestration capabilities. Strategic Entrepreneurial. Journal, 7, 93-121.
36. Walter, A.,Auer, M., & Ritter T.( 2006 ) . The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of Business Venturing 21(4):541–567.