Entrepreneurial Orientation

The term entrepreneurial orientation (EO)—also referred to as firm-level entrepreneurship, entrepreneurial posture, strategic posture, strategic orientation, or corporate entrepreneurship—refers to firm-level practices or processes leading to an act of entrepreneurship (new entry). Entrepreneurial orientation is a multidimensional construct comprising various processes, including innovativeness, proactiveness, risk taking, competitive aggressiveness, and autonomy. The works of D. Miller and P. Friesen (1983), Miller (1983), and J. G. Covin and D. P. Slevin (1988, 1989) provided the foundational structure of the EO construct.

Early entrepreneurship research identified various characteristics of entrepreneurial firms. However, it was Miller (1983) who initially proposed a combination of factors that he found to be representative of the entrepreneurial nature, or strategic posture, of an organization. He defined an entrepreneurial organization as “one that engages in ...