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Effectual control orientation and innovation performance: clarifying implications in the corporate context

2019

Sebastian Markus Szambelan Szambelan Yi Dragon Jiang

This study aims to assess the relationship between effectual control orientation (ECO) and a firm’s innovation performance, with entrepreneurial orientation (EO) as a mediator, in a corporate context. Based on data from 157 established corporations in Germany, the findings indicate that ECO has a positive effect on innovation performance. The study also shows that EO’s behavioral dimension (i.e., innovation and proactiveness), rather than risk-taking, acts as a mediating mechanism between ECO and innovation performance. The empirical results provide theoretical and managerial implications for innovation, effectuation, and EO literatures.

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