A.SYAHIDA ULHAQ PASRYB (NIM.

A022231010)
PRODI MAGISTER SCIENCE MANAGEMENT 2023

JOURNAL REVIEW

Tittle Entrepreneurial Orientation and Performance: Is Innovation Speed a

Missing Link?
Journal Journal of Business Research
Volume & Page Vol. xxx, 2015, Page. 1-8
Year 2015
Authors Peng Shan, Michael song, & Xiaofeng Ju
Reviewer A.Syahida Ulhaq Pasryb (A022231010)
Date 1 November 2023

Research Goal • The research goal of the paper is to examine the relationship
between entrepreneurial orientation (EO) and performance in
new ventures, specifically focusing on the mediating role of
innovation speed.
• The study aims to develop a conceptual model to understand how
innovation speed mediates the relationship between
entrepreneurial orientation and performance.
• The authors collected data from 153 new ventures to test their
proposed theoretical model.
• The study also aims to challenge traditional views by providing
empirical evidence that shows how innovativeness increases
innovation speed, risk-taking reduces innovation speed, and
proactiveness has inverted U-shaped effects on innovation speed.
• The authors highlight the importance of considering innovation
speed as a missing link between entrepreneurial orientation and
performance, as well as the curvilinear relationship between
proactiveness and innovation speed.
Research Subject • The research paper focuses on the relationship between
entrepreneurial orientation (EO) and performance in new
ventures.
• It examines how innovation speed acts as a mediator in this
relationship.
• The study challenges traditional views by finding that faster
innovation speed leads to superior performance in new ventures.
• It also highlights the impact of different dimensions of
entrepreneurial orientation on innovation speed. Innovativeness
increases innovation speed, risk-taking reduces innovation speed,
and proactiveness has an inverted U-shaped effect on innovation
speed.
• The paper contributes to the literature by emphasizing the
importance of innovation speed as a missing link between
entrepreneurial orientation and performance.
• It also highlights the curvilinear relationship between
proactiveness and innovation speed, challenging the assumption
of a linear relationship between entrepreneurial orientation
dimensions and performance.
 A.SYAHIDA ULHAQ PASRYB (NIM.A022231010)
PRODI MAGISTER SCIENCE MANAGEMENT 2023

Data Assessment • The paper collected data from 153 new ventures to test the
proposed theoretical model on the relationship between
entrepreneurial orientation (EO), innovation speed, and
performance.
• The sample was a random sample of 1000 companies from Dun
and Bradstreet's (DB) database list of new businesses started in
2007. The companies had to meet specific criteria, such as being
an independent business created by individuals, having a legal
business identity, and having at least one full-time employee in
certain industries.
• A mail survey was used to collect data, and after follow-up letters,
a total of 153 usable questionnaires were received, representing a
response rate of 19%.
• The study acknowledges some limitations, including the focus on
new ventures and the cross-sectional nature of the data. Future
research is suggested to test the generalizability of the findings
and to consider other factors such as quality and cost in
understanding the mechanism between EO and performance.
Overall, the paper utilized a sample of 153 new ventures and
collected data through a mail survey to examine the relationship
between EO, innovation speed, and performance. The study
acknowledges its limitations and suggests avenues for future
research.
Research • Existing research primarily focuses on examining how
Background entrepreneurial orientation (EO) contributes to the performance
and survival rate of new ventures.
• Studies in this research stream have reported mixed results, with
some finding a strong relationship between EO and performance,
while others report lower or no significant correlations. These
inconsistencies are attributed to factors that potentially moderate
the EO-performance relationship, such as environmental
conditions.
• However, few studies have considered the impact of internal
factors, specifically innovation speed, on the EO-performance
relationship. The role of innovation speed as a mediator between
EO and performance has been emphasized, but insights on how
innovation speed intervenes in this relationship are scarce.
• This research aims to address this gap by developing a conceptual
model to examine the mediating role of innovation speed in the
relationship between EO and performance in new ventures. It also
explores the curvilinear relationship between proactiveness and
innovation speed, challenging the assumption of a linear
relationship between EO dimensions and performance.
Research Method A personalized letter, the survey, and a return envelope with an
individually typed return address were included in the mailing
package sent to each firm. Initially, 221 mailing packages were
returned due to undeliverable addresses or names, reducing the
sample size to 779. After four follow-up letters, a total of 153 usable
questionnaires were received, resulting in a response rate of 19%.
 A.SYAHIDA ULHAQ PASRYB (NIM.A022231010)
PRODI MAGISTER SCIENCE MANAGEMENT 2023

The study acknowledges some limitations, including the focus on

new ventures and the need for future research to test the
generalizability of the findings. Additionally, the study suggests
considering other factors such as quality and cost in future research
to better understand the mechanism between EO and performance.
The data collected for the study is cross-sectional, and the authors
suggest that longitudinal data could be helpful to test the true
causality of the model
Results • The study found that faster innovation speed leads to superior
performance in new ventures.
• The empirical evidence challenges traditional views, as
innovativeness increases innovation speed, and risk-taking
reduces innovation speed.
• Proactiveness has inverted U-shaped effects on innovation speed.
• Three of the five Entrepreneurial Orientation (EO) variables
(Innovativeness, Autonomy, and Risk-Taking) have significant
effects on performance.
• All five EO variables have a significant effect on innovation
speed.
• Innovation speed has a significant and positive effect on
performance, partially mediating the relationship between EO
and performance.
• Autonomy and competitive aggressiveness are found to increase
innovation speed, as predicted.
• However, the hypothesis that innovativeness has a negative
influence on innovation speed was not supported.
• The hypothesis that risk-taking increases innovation speed was
also not supported.
• The study suggests that future research should consider
longitudinal data and explore other factors such as quality and
cost in the EO-performance relationship.
Research Strengths • The study contributes to the entrepreneurial orientation (EO)
literature by examining the mediating role of innovation speed in
the relationship between EO and performance.
• The research findings challenge traditional views by showing that
faster innovation speed leads to superior performance in new
ventures.
• The study provides empirical evidence on the effects of different
EO dimensions on innovation speed. It finds that innovativeness
increases innovation speed, while risk-taking reduces it.
Additionally, proactiveness has inverted U-shaped effects on
innovation speed.
• The research methodology utilized a mail survey with a total
design method, resulting in a response rate of 19%.
• The study acknowledges its limitations and suggests future
research directions, including testing the generalizability of the
findings, considering other factors such as quality and cost, and
using longitudinal data to test causality.
 A.SYAHIDA ULHAQ PASRYB (NIM.A022231010)
PRODI MAGISTER SCIENCE MANAGEMENT 2023

Research Weakness • The study has a limited sample size, focusing only on new
ventures, which may limit the generalizability of the findings.
• The study primarily focuses on the effect of five dimensions of
entrepreneurial orientation (EO) on innovation speed, neglecting
other factors such as quality and cost that could provide a more
comprehensive understanding of the mechanism between EO and
performance.
• The data collected for the study are cross-sectional, which limits
the ability to establish true causality in the proposed model.
Future research using longitudinal data would be beneficial to test
the causal relationships.
• The study acknowledges the need for future research to explore
the impact of internal factors on the EO-performance
relationship, as most existing studies have focused on external
factors such as environmental conditions.
• The study also highlights the need for future research to test the
true causality of the proposed model and to examine the effect of
innovation speed on the EO-performance relationship in different
contexts.
Conclusion • The study found that innovation speed acts as a mediator between
entrepreneurial orientation (EO) and performance, highlighting
its importance in the relationship between the two.
• The research challenges the traditional views by showing that
innovativeness increases innovation speed, while risk-taking
reduces it. Additionally, proactiveness has an inverted U-shaped
effect on innovation speed.
• The study contributes to the EO literature by examining the
mediating role of innovation speed in the relationship between
EO and performance. It also highlights the curvilinear
relationship between proactiveness and innovation speed,
challenging the assumption of a linear relationship between EO
dimensions and performance.
• The limitations of the study include the focus on new ventures,
the exclusion of other factors such as quality and cost, and the use
of cross-sectional data. Future research should address these
limitations.