Implications of Customer and Entrepreneurial Orientations for SME Growth

Purpose – The aim of this paper is to empirically investigate how the business orientations of customer orientation (CO) (represented by responsiveness to customers) and entrepreneurial orientation (EO) (represented by proactiveness, innovativeness and risk‐taking) impact the growth of SMEs. Design/methodology/approach – This study uses a quantitative empirical approach, using structural equation modeling with the software package AMOS to analyze the results of 660 surveyed SMEs from Austria. Findings – This analysis reveals that EO is positively related to SME growth but CO shows a negative association with growth. Moreover, this analysis suggests that SMEs grow the most if they exhibit high EO and low CO. Research limitations/implications – This analysis shows that CO, interpreted as a purely responsive and reactive construct, cannot be considered a strategy that leads to sustainable SME growth. If an SME desires growth, EO is needed to fuel these growth aspirations. In spite of these findings however, this study shows that SMEs tend to respond to a scarcity of financial resources with more CO and less EO, which then leads to less or even negative growth. Practical implications – Sustainable firm growth seems impossible without an EO. However, this does not mean that CO is not of any value for SMEs. Being non‐entrepreneurially oriented does not mean that a firm is automatically customer oriented. So, it is not only about implementing CO or EO since there is still the third option: implementing neither. Originality/value – This paper contributes to the ongoing scholarly conversation on the value of different orientations to firms and takes the view that the conversation on CO and EO has mis‐specified business performance in seeking to understand their performance consequences. By looking at firm growth, relevant to the longer‐term performance of a firm, EO might drive growth because of its emphasis on innovation to renew the firm's growth trajectory whereas CO might stifle growth owing to its myopic focus. Thus, this study addresses calls in the business and entrepreneurship literatures to more fully understand how SMEs can capture value from their customer and entrepreneurial orientations

A Novel Task for the Investigation of Action Acquisition

We present a behavioural task designed for the investigation of how novel instrumental actions are discovered and learnt. The task consists of free movement with a manipulandum, during which the full range of possible movements can be explored by the participant and recorded. A subset of these movements, the ‘target’, is set to trigger a reinforcing signal. The task is to discover what movements of the manipulandum evoke the reinforcement signal. Targets can be defined in spatial, temporal, or kinematic terms, can be a combination of these aspects, or can represent the concatenation of actions into a larger gesture. The task allows the study of how the specific elements of behaviour which cause the reinforcing signal are identified, refined and stored by the participant. The task provides a paradigm where the exploratory motive drives learning and as such we view it as in the tradition of Thorndike [1]. Most importantly it allows for repeated measures, since when a novel action is acquired the criterion for triggering reinforcement can be changed requiring a new action to be discovered. Here, we present data using both humans and rats as subjects, showing that our task is easily scalable in difficulty, adaptable across species, and produces a rich set of behavioural measures offering new and valuable insight into the action learning process