Entrepreneurs and managers are quick to draw a connection between their respective behaviors and the performance of their organizations, but research on entrepreneurial style and firm performance has shown that entrepreneurial-style firms are more likely to experience higher performance in terms of sales growth.
Highlights:
- The relationship between entrepreneurialism and managerial behavior is complex yet important to understand as it correlates with company success.
- Entrepreneurial styles vary in the degree to which they bring innovation and disruption to their organizations.
- Entrepreneurial attributes include risk-taking, openness to change, honesty and self-awareness in interpersonal relations, and confidence in one’s ability to lead by example.
- Managerial behavior is a set of daily actions, including a range of employee-oriented behaviors, such as task orientation, teamwork orientation, or leader-focused behaviors.
Businesses come in different shapes and sizes. While there is no one-size-fits-all for companies, it is important to understand how certain types of companies are managed in order to grow. Managers and entrepreneurs alike are quick to draw a connection between their respective behaviors and the performance of their organizations. However, management style, entrepreneurial behaviors, and firm performance are complex sets of interactions. Research on entrepreneurial style and firm performance has shown that entrepreneurial-style firms are more likely to experience higher performance in terms of sales growth (e.g., Hughes & Morgan, 2007). These firms are characterized by high strategic flexibility, risk-taking, and creativity.
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