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Entrepreneurial orientation, legitimation and the new venture performances

Wang, T, Thornhill, S and JO De Castro (2017). Entrepreneurial orientation, legitimation and the new venture performances, Strategic Entrepreneurship Journal, 11(4): 373-392.

We integrate research on entrepreneurial orientation and new venture legitimacy. To create value from an entrepreneurial orientation, firms need to possess necessary resources and capabilities, which new ventures often lack due to their liability of newness.

We posit that legitimation helps overcome these constraints by enabling new ventures to acquire necessary resources and develop essential capabilities, and argue that entrepreneurial orientation and legitimation jointly enhance new venture performance. We analyzed data on 149 new ventures and found support for this argument. This study opens new research avenues by extending and incorporating explanations and predictions of entrepreneurial orientation and legitimation, two areas that largely have been considered as independent of each other.

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