Entrepreneurial orientation and firm performance in a sanctioned economy – does the CEO play a role?

Abstract

Purpose

Entrepreneurship, in many low-resilient economies, plays a critical role in overcoming external shocks. Thus, it is crucial in such situation that entrepreneurial firms can survive and even grow so that the whole economy can benefit from a higher level of resilience. The purpose of this study is to understand how entrepreneurial orientation (EO) brings about firms' performance through the moderating role of CEOs' self-transcendence values in the context of a low-resilient sanctioned economy.

Design/methodology/approach

This is a quantitative research that employs hierarchical regression analysis of a sample of 114 Iranian entrepreneurial firms composed of 62 knowledge-based and 52 creative firms.

Findings

The analysis revealed that in the low-resilient sanctioned economy, Iran, EO-performance link is moderated by the level of CEOs' self-transcendence value, that is, higher level of CEO self-transcendence leads to stronger impact of EO on performance. This moderation is not different in creative sector vs. knowledge-based sector of the economy.

Originality/value

This paper addresses a major gap in the traditional EO-performance relationship which is related to the role of CEO values. Also, the context of Iran's low level of economic resilience adds more novelty to this study, emphasizing on the role of CEO personal values of self-transcendence in times of crisis. The results could also be generalized in many economies now facing the COVID-19 pandemic crisis during which CEOs' self-transcendence values are vitally important in overcoming the difficulties of doing business in such situation.

Citation

Cannavale, C., Zohoorian Nadali, I. and Esempio, A. (2020), "Entrepreneurial orientation and firm performance in a sanctioned economy – does the CEO play a role?", Journal of Small Business and Enterprise Development, Vol. 27 No. 6, pp. 1005-1027. https://doi.org/10.1108/JSBED-11-2019-0366