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Exploring entrepreneurial orientation (EO) in 3 dimensions: a newprospective for analyzing the value of a company

Zhan JunPhD student, Faculty of Economics & Business Administration, Ghent University, Belgium.

Lecturer, Hebei University of Economics and Trade, China.E-mail: [email protected]

Professor Dr Dirk DeschoolmeesterFaculty of Economics & Business Administration, Ghent University, Belgium.Department of Management & OrganizationandVlerick Leuven Gent Management SchoolE-mail: [email protected]

Comprehension of entrepreneurial orientation within 3 dimensions: innovativeness, risk

proactive handling capability and management professionalization (3D on EO) is a new

research topic that comes from modification and refinement of the previous research onentrepreneurial orientation (EO). The article intends to establish a theoretical conception and

practicable framework that are to be used to explore actuality of EO along these 3 dimensions.

The academic aim of the research is to provide a theoretical background on which comparison

of EO is to be made accessible.

How are the three dimensions for measuring Entrepreneurial Orientation (EO) derived?

Entrepreneurship --- the field of research has been described as young, at a formative stage,

and still in its infancy (Paulin et al. 1982, Perryman 1982, Peterson and Horvath 1982, Sexton

1982). Numerous definitions of entrepreneurship and of what is the essence of entrepreneurs

make the research of entrepreneurial phenomena such as a comprehensive comparison of

entrepreneurs a frustrating task. The literature abounds with criteria ranging from creativity and

innovation to personal traits such as appearance and style. Entrepreneurs are always

contradictorily defined because the definition is made form various point of views.

Entrepreneurs and Innovation & Innovativeness

Popular business periodicals frequently, if not ordinarily, regard innovation as a distinguishing

characteristic of the entrepreneur. Joseph A. Schumpeter, a noted economist, stressed theinnovative role of the entrepreneur --- doing new things by recombining parts of what is

already being done (Joseph A. Schumpeter, 1961). Peter F. Drucker echoed Schumpeter by

distinguishing between administration and entrepreneurship. The latter entails innovation ---

involving changes which, in the case of todays business, will make it into a different business

tomorrow (Peter F. Drucker, 1974). As Peter F. Drucker defines innovation as a means by

which entrepreneurs may exploit change in order to create new service and business

opportunities. Innovation is the brand specially owned by entrepreneurs. Willingness to

innovate (innovativeness) thus is the most prominent attribute consisting of the essence of

being an entrepreneur. Thus innovation, creativity, and discovery are the vital core subjects

defined by the innovation-oriented scholars headed by Schumpeter and Drucker. As all the

entrepreneurship researchers agree, innovation is at the heart of entrepreneurship.


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Entrepreneurs and Risk & Risk taking

As Richard Cantillon (circa 1730) stated, entrepreneurship is defined as self-employment of

any sort. The entrepreneur is a bearer of uncertainty. Entrepreneurs usually are considered to

bear risk while pursuing opportunities, and often are associated with creative and innovative

actions. Entrepreneurs are always confronted, either voluntarily or compulsorily, the challenges

of uncertainties and potential financial and social losses while running their business.

Entrepreneurs are risk takers because it is risk-taking spirit that encourages entrepreneurs to

have their attention and actions contributed to the exploration of profit realization.

However, in reality, successful entrepreneurs, contrary to the popular notion, generally select

risks that avoid huge gambles. They are adept at calibrating the level of risk that matches

potential reward and their personal capability to manage uncertainty. (Richard L. Osborne,

1995). Entrepreneurs must be not only risk takers but also risk handlers who rationally measure

risks, and deal with risks. (Justin G. Longenecker and John E. Schoen, 2001).

Entrepreneurs and Management & Organizational Competence

J. B. Say, an early economist, saw the entrepreneur as the economic agent that combines others

into a productive organism. The entrepreneur was portrayed as a monitor who minimizes

shirking (Alchian and Demsetz, 1972), an owner of physical capital (Hart, 1995), or a judge of

unique events (Knight, 1971; Buchanan, 1980) while these views stress ability, they model it as

a skill which affords cognitive ability in comprehending an externally given distribution of

events. Entrepreneurs are required to perform such fundamental managerial functions as

direction and control. As a result, entrepreneurs actually are administrators because they are

required of organization and management competence which is one of prerequisites to

acquirement of effective and efficient decision making and operation control.

Summing up the elementary arguments raised by the various definitions from the three

domains briefly described above, the entrepreneur therefore is variously pictured as

self-employed owner of business, initiator, manager, innovator, decision-maker, or risk taker. In

other words, there are many versions of what entrepreneurs do when they do what they do

(Longenecker and Schoen, 2001). Specifically, the most typical attributes representing the

essence of entrepreneurs and entrepreneurial activities are discussed in a 3-dimensional viewthat follows in the description below:

Innovativeness: entrepreneurs must be innovatorsEntrepreneurs are keen to find out the innovative methods and get them utilized so as to

enforce competitive strength of their business over the competitors.

Risk dealing: entrepreneurs must be risk takers & risk handlersEntrepreneurs must encounter risk no matter how proactive or reactive an entrepreneur is


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while running their business. Though Schumpeter does not think entrepreneurs are risk

takers, entrepreneurs who are engaged in business activities actually cannot manage their

enterprises without being confronted with the potential business risk. Though the

management decentralization and share of ownership come more and more into the modern

economy and management, entrepreneurs capability to handle the business risk is one of

the major indexes which indicate the essential quality of being entitled as an entrepreneur.

Management competence: entrepreneurs must manage their business in a professional wayEntrepreneurs are administrators and decision-makers in their business. In order to achieve

optimization of production, reduction of cost, and customer orientation, they must make the

most rational decisions by availing themselves of the principles of managerial science. In

the present business, being a professional, an entrepreneur without enough management

competence and skills are doomed to suffer defeats, even end up in the worst case into

bankruptcy or discontinuance of business.

Distillation from the mixture of definitions and usage of those special features that capture the

principle thrust of entrepreneurship result into the three fundamental elements that appear to lie

at the heart of entrepreneurial activity. The elements occur frequently, though not uniformly, in

the literature, pertaining to the entrepreneurial function: (1) Innovation. (2) Risk taking & risk

handling. (3) Management competence and skill.

Conclusively, in prospect of entrepreneurship theory, refinement from the mixture of the

various definitions of entrepreneur indicates that entrepreneurs are a group of people among

whom exist commonly unique characteristics: finding out or forming, and utilizing unique

ideas (innovation & innovative); taking and handling the concomitant uncertainty and risks

(risk taking & risk handling capability); translating their ideas or conceptions into reality

through managing or organizing capability required (management competence and skills).

Accordingly, entrepreneurs are innovators, risk takers & risk handlers, and self-employed

business owners with management competence and skills. Their activities are generally carried

out around these three themes.

What is entrepreneurial orientation?

Being an entrepreneurial phenomenon, entrepreneurial orientation, as G. T. Lumpkin, and

Gregory G. Dess define, refers to the processes, practices, and decision-making activities that

lead to new entry (G. T. Lumpkin, and G. G. Dess, 1996). The term entrepreneurial orientation

is used to refer to the set of personal psychological traits, values, attributes, and attitudes

strongly associated with a motivation to engage in entrepreneurial activities (McClelland, 1962;

Dunkelberg & Cooper, 1982; Hornaday & Aboud, 1971; Timmons, 1978).

Entrepreneurial orientation is a firm-level construct (Covin & Slevin, 1991) that is closely

linked to strategic management and the strategic decision making process (Birkinshaw, 1997;

Burgelman, 1983; Kanter, 1982; Lumpkin & Dess, 1996; Naman &Slevin,1993).


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Entrepreneurial orientation should be distinguished from entrepreneurship, which related to

new business entry and is concerned primarily with questions such as ,What business do we

enter? and How do we make the new business succeed? (Orlando C Richard, Tim Barnet, et

al, 2004). Entrepreneurial orientation is a process construct and concerns the methods,

practices, and decision making styles managers use (Lumpking & Dess, 1996).

Based on the understanding, the essence of entrepreneurial orientation is how the entrepreneurs

implement entrepreneurship in the course of realizing their career ambition.

The diversity of the entrepreneurial orientation in terms of content and research scope demands

that a thorough exploration of the entrepreneurial orientation held by entrepreneurs is

accomplished in a multi-dimensional manner.

Literature review on the entrepreneurial orientation research by other scholars:

y Evaluation in five dimensions: theory by Miller (1983), Lumpkin, and Dess(1996)In research of EO (entrepreneurial orientation), Miller (1983) used the dimensions of

innovativeness, risk taking, and proactiveness to characterize and test entrepreneurship.

Two more dimensions, according to G. T. Lumpkin, and Gregory G..Dess, are described as

autonomy and competitive aggressiveness. Thus generally suggested by Miller, Lumpkin, and

Dess, there are five salient dimensions to explore the multi-aspects reviews in entrepreneurial

orientation which consists of autonomy, innovativeness, risk taking, proactiveness, and

competitive aggressiveness.

y Evaluation in three dimensions: theory by Khandwalla (1977) and Miller and Friesen(1982), Covin and Slevin(1989), Patrick M. Kreiser and K. Mark Weaver (2002).

Entrepreneurial orientation is a commonly used measure in the entrepreneurship literature. The

most widely utilized operationalization of entrepreneurial orientation in both the

entrepreneurship and strategic management literature was developed by Covin and Slevin

(1989), based on the earlier work of Khandwalla (1977) and Miller and Friesen (1982). In

developing this measure, Covin and Slevin theorized that the three dimensions of

entrepreneurship orientation---innovation, proactiveness, and risk taking --- acted together tocomprise a basic unidimensional strategic orientation and should be aggregated together

when conducting research in the field of entrepreneurship (Covin & Slevin, 1989, p.79).

y Evaluation in three dimensions as proposed in this thesis: an introductionAs we, the authors of this research, believe, the essence of entrepreneurship and minimum

qualification of being an entrepreneur reveal themselves by the evidences on how he or she

implements the entrepreneurial functions, namely how innovative is he or she, how proactively

does he or she handle business risk, how professionally does he or she manage the business.


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Measurement of each of the sub items of the three dimensions that we propose mainly involves

the evidences from three aspects: (1) an entrepreneurs manner and action towards innovation

(innovativeness), (2) his or her propensity and proactiveness in behavior to risk (risk handling

capability & risk proactiveness), (3) his or her attitude and performance to management

professional qualification and adherence to management standards (management

professionalization). Entrepreneurial orientation, as an entrepreneurial phenomenon, can be

studied through probing into the related facts confined within his three dimensions. In an

abbreviated form, we call it 3D on EO.

Practicable theoretical foundation: How are these 3 dimensions developed into practical

frameworks?

The three dimensions on entrepreneurial orientation (3D on EO) put forth by the authors are

actually a revision of the previous theories for entrepreneurial orientation with management

professionalization added as one of the three dimensions which has not be brought forward and

studied by previous entrepreneurship researchers. 3D on EO is aimed at pointing out the

essential reality among the entrepreneurial orientation held by different entrepreneurs. The

modification of the preceding theories is made due to the consideration of the facts from the

following:

Innovation & innovativeness: a primary theme in entrepreneurship and entrepreneurial

orientation

Innovativeness is an essential element pertaining to an entrepreneur. Innovativeness, accordingto the recent entrepreneurship research, is the basic property that distinguishes an entrepreneur

from other professionals. In response to the essence drawn from the six schools of

entrepreneurship, innovation and innovativeness are taken as the principal dimension along

which the most typical features in entrepreneurial orientation are intended to be revealed.

Innovativeness of entrepreneurs

Innovativeness of entrepreneurs is their propensity to innovate their business (for example,

innovation applied to organization, products, processes, technologies and materials, etc), their

willingness to try the ways which are different from the existing, the enthusiasm to adopt new

ideas or new methods to their business operation, and the eagerness to implement the

innovation strategy in their business.

The degree of an entrepreneurs innovativeness will decide how far and how deep the

innovation will go in his business in order to meet both the strategic goal formulated for the

business and the requirements from the environment.

What are the facets indicating innovation and an entrepreneurs innovativeness?

Innovation principally takes place almost everywhere in the business operations. With an


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extensive literature review completed, a category of major facets that express the

innovativeness held by an entrepreneur and where innovation is apt to take place are listed as

follows:

y Organizational formation & adaptation and organizational innovationy Allocation of resources: the commitment to improve the innovation capacity of businessy Success obtained through innovationy Innovation intention in strategyConclusively, the detailed information can be made achievable by investigating the evidences

such as entrepreneurs innovation intention revealed in the innovation strategy or planning, and

entrepreneurs innovation contribution towards the realization of future innovation.

Proactive risk handling: a more realistic research topic in entrepreneurial orientation

J. B. Cunningham and J. Lischeron assert that entrepreneurs prefer to take moderate risks in

situations where they have some degree of control or skill in realizing a profit (J. Barton

Cunningham and Joe Lischeron, 1991). Cantillion also described the entrepreneur as a rational

decision-maker "who assumed the risk and provided the management of the firm" (Kirby 1971).

Furthermore, empirical findings indicate that entrepreneurs are not regarded as merely risk

takers, instead they are moderate risk handlers because they seldom decide to bluntly take risks

until a thorough calculation of the potential risks is made. Entrepreneurs, in actuality, tend to

proactively deal with the risks that may potentially damage their business. The change in

content of dimension from risk taking to proactive risk handling is aimed at portraying more

realistically the phenomena existing in the scope of entrepreneurial orientation held by

entrepreneurs. Therefore, the proactiveness in risk handling or risk handling and risk

proactiveness will be more pertinent and a more significant topic which is of real worth in

research of EO (entrepreneurial orientation).

What is risk handling capability and risk proactiveness?

Risk handling can be roughly defined as any set of actions taken by individuals or corporations

in an effort to alter the risk arising from their primary line(s) of business. Risk handling is the

process in which potential risks to a business are identified, analyzed, mitigated, and prevented,along with the process of balancing the cost of protecting the company against a risk vs. the

cost of exposure to that risk. The ideal way to cope with risk, according to the principle of risk

handling theory, is normally considered as handling risk at its inception which mainly refers to

perceiving risk at its inception, and taking risk under control right from its inception stage.

Proactiveness simply is the ability to take the initiative, the ability to take the initiative

whenever the situation demands. Proactiveness is thus not only in defence, but in offence as

well. Actually, entrepreneurs risk handling capability and proactiveness are the competence of

assessing and addressing in advance from all sources the risks that threaten the achievement of

an enterprises strategic objectives and effectively find solutions in advance to these risks. The


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proactive risk performance is exhibited in prior creation of risk proactive readiness, or at least

in a pre-arranged control over some of the aspects of the imminent uncertainties. Conclusively

speaking, entrepreneurs risk handling capability and proactiveness, in principle, are their

ability of preventing or minimizing prior to the risk occurrence the damage caused by business

risk to their enterprises. What should be emphasized is that no matter what pre-loss measures

or post-loss measures are taken, the premeditated risk handling actions (risk identification, risk

assessment, risk control, and evaluation) that are taken before the risk occurs are regarded as

proactive measures taken against risks.

Analysis of risk proactive handling capability

Analysis of entrepreneurs risk handling capability and proactiveness is made achievable

through rating the facts in the two facets: readiness of risk handling measures and proficiency

of risk handling capability. Sequentially, entrepreneurs risk handling capability and

proactiveness can be revealed through assessing the facts from the following:

Evaluation of the facts of the entrepreneurs personal capability of proactively handling risk

y Premeditative understanding of environment where risk lies.y Assessment of the potential risk of all sorts: risk likelihood, risk impact etc.y Readiness of the pre-planned risk handling measures.y Familiarity with and effective utilization of the risk handling measures.y Evaluation of the effectiveness of the risk handling measures.y Modification and improvement of the risk handling activities.The risk proactiveness is expressed through the manner how proactively the risk handling

measures are taken while the entrepreneurs tried to deal with the risks identified in their

business.

Management & organization competence

Entrepreneurs need capability to realize their entrepreneurial ambition spurred by their

innovativeness. In order to achieve optimization of production, reduction of cost, and customer

orientatedness, they must make rational decisions as the most rational as possible by availing

themselves of the principles of managerial science. Allocation of non-human and human

resources, establishment and adaptation of organization will never be rationally achieved if

involvement and the aid from management knowledge are not made.

Management is defined as an executive action that transforms external reality consistently

with the personal inner theatre of the leader (Lapierrer, 1991. p. 71). The modern industrial

production is based on the managerial science. The drawing of the 20th

century witnessed a

rapid growth in availability of commodities.

The varieties and durability required of the commodities make the modern production and


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communication no longer the activities as simple as before. The optimized performance of

enterprises has to be realized through the application to the practice of the principle of the

managerial science which have generated and accumulated through the production and market

development.

Entrepreneurs need to employ their managing craftsmanship on their way to translate their

ideas or conceptions into reality. Entrepreneurs management competence, the vehicle that

carries entrepreneurs dream to the destination of success, is one of the aspects that form the

essential content of entrepreneurship and entrepreneurial orientation.

Management professionalization: management competence and skill centered entrepreneurial

orientation.

In their entrepreneurial career, according to Match (Denal Match, 1991), an entrepreneur will

have to acquire and develop basic practice-oriented management competence and skills to be

required in different stages of their business which mainly include:

The capability of foundation and development of businesses: how to create a business,how to make strategic planning, how to develop a business, etc.

Marketing strategy and different types of marketing methods indispensable for thesuccess of a business for correct awareness of the ever-changing environment, etc.

Resources (human and non-human) management for ideal allocation of these resources;finance and budgeting; performance appraisal and adjustment techniques, etc.

Production & procurement management for optimization of production and cost, andideal efficiency and effectiveness, etc.

Planning and strategic direction: organizational objectives, possibility of theexpectation, flexibility, and workability, etc.

Control: strategic performance and control standards used in different areas; e.g.,production, marketing, finance, personnel etc. Types of control techniques used, timing

and procedures for correct action, evaluation of the performance, etc.

Organization: structure and sub units, degree of centralization and decentralization ofauthority, departmentation & grouping of activities, etc.

Public & external relations. Taxation and social insurance system: the changes in the taxation system concerning

the personal income taxation, the individual entrepreneurs and companys taxation

system and the social insurance system.

Since management is a series of the learned activities focusing the planning, organizing and

controlling a firm, it is associated with experience, education, and training through which the

knowledge and skills can be passed on to the entrepreneurs. Management competence and skill,according to the management school by J. B. Cunningham and J. Lischeron, seems to be one of


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the most radical scopes to be probed into. Management competence and skills are mastered to

improve efficiency and effectiveness in business operation, and to realize rationalization in

allocation of resources.

From management competence to management professionalization: a more reliable

terminology for EO

However, management competence and skill are not a suitable term to be used to represent one

of the domains in entrepreneurial orientation because entrepreneurial orientation actually is the

psychological propensity taken by the entrepreneurs with considering the affect from the

complicatedly interweaved factors which influence their entrepreneurial orientation

(Geletkanycz, 1997). Entrepreneurial orientation, as G. T. Lumpkin and G. G. Dess define,

principally refers to the processes, practices, and decision-making activities that lead to a new

entry. The entrepreneurial orientation in terms of management professionalization thus implies

that the entrepreneurs propensity, behavior or performance that are involved in managementprocess, practice and decision making, etc. are expected to be made in a managerially

professional fashion, so that these entrepreneurs are able to minimize administrative errors and

maximize the efficiency and effectiveness in business operation. Moreover, management

competence and skills are not a suitable term for representing what should be explored and

analyzed because the term of management competence and skill fails to fully represent the

entrepreneurs real managerial function. Considering the uniqueness of being an entrepreneur,

namely, doing things through a community of people because management implies having

the job done by others, management is defined as an executive action that transforms

external reality consistently with the personal inner theatre of the leader (Lapierre, 1991). As a

decision-maker and administrator, an entrepreneurs management competence includes not

only the individual management capability but also the ability to have their vision of

management implemented and realized in the business operation. Thus entrepreneurs activities

to have their business managed in conformity with management principles are indispensable in

this domain. Management competence and skills are thought no longer to be a perfect

nomenclature for such activities.

What is management professionalization?

Professionalization is the process in which minimum qualifications should be established forentrance into professional practice or activity, appropriate rules and norms of conduct among

members of the professional group must be enforced hoping to raise the status of the

professional group in the large society (Howard M. Vollmer and Donald L. Mills 1978).

Accordingly, management professionalization is a series of activities that are to be

implemented intending to have business operation run according to requirement of

management principles. Management professionalization actually involves the evidence from

two major aspects: (1) professional education status (entrepreneurs and their subordinates etc),

and (2) adherence to the scientific-based management principles during their practice. In a

same way, management professionalization, simply, is the process to professionalize business

management through: (a). Applying the professional managerial science to the business


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management and implementing business management in compliance with the criteria and

standards established by and derived from the professional knowledge. (b). Building up

management personnels management capability (Peter F. Drucker, 1998). By doing so, the

quality of management is possible to be made assured; optimized allocation of scarce resources

is expected to be realized; and maximum in profit and minimum in cost are to be obtained.

As a conclusion, according to Howard M. Vollmer & Donald L. Mills, and Michael J. Austin,

management professionalization held by an entrepreneur in fact includes the implications from

three facets shown in the following:

Entrepreneurs individual management professional status Entrepreneurs commitments made for professionalization of their business management Entrepreneurs intended efforts to be made to professionalize their business managementConclusively, comprehension of the entrepreneurs management professionalization consists of

the two aspects: the entrepreneurs personal management professionalization which mainlyinvolves the evidences such as entrepreneurs individual professional education level,

professional working experience, their intention to have professional management continuous

education or training and son on. The commitments to professionalize business management of

marketing, production, finance, human resources, information technology, and so on.

Being the essence of entrepreneurship and entrepreneurial activities, however, such exploration

of entrepreneurs propensity to improve management competence and skills is less discussed

and seldom analyzed in the entrepreneurship research. Especially, it is also less mentioned in

the EO (entrepreneurial orientation) research previously made by Mark Weaver, Lumpkin &

Dess, Claive & Steven, and other entrepreneurship researchers. The entrepreneurs propensity

to improve management competence through upgrading the management professionalization,

according to the preceding discussion on essence of entrepreneurship and the definition of

entrepreneurial orientation, thus surely is of sufficient necessity to be listed as one of the

elementary domains of entrepreneurial orientation.

On the basis of the analysis of the preceding conceptual and empirical findings achieved by

various entrepreneurship scholars, the propensity and desire to improve management

competence and skills thus is put forth as one of the most representative dimensions that are

used to describe entrepreneurial orientation.

Reiteration of our three dimensions for entrepreneurial orientation research: a conclusion.

3D on EO, as proposed in this research, intends to delimit the essence of entrepreneurship and

the major topics around which the entrepreneurs activities are carried out while administrating

their business. Thus the delimited essence is the background on which a more realistic

description is to be made to entrepreneurial orientation.

It is through the literature review that perception of the essence of the entrepreneurship and

awareness of the major topics, around which the entrepreneurs activities are carried out while


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running their business, are analyzed and summarized. For instance, summation and analysis of

definitions in various forms and six schools of entrepreneurship by Longenecker and Schoen

indicate that innovation, risk taking & risk handling, and management & organization

competence are the essential elements that constitute the general contents and major scopes of

entrepreneurship.

Exploration of the literature on entrepreneurial orientation indicates it has been explored in a

multi-dimensional method. For example, Lumpkin and Dess suggest that entrepreneurial

orientation is analyzed along five dimensions which include innovation & innovativeness, risk

taking, proactiveness, autonomy, and competitive aggressiveness. Furthermore, Claive &

Steven, Patrick M. Kreiser and K. Mark Weaver instead utilize three dimensions to study

entrepreneurial orientation because they claim that innovativeness, risk taking and

proactiveness are the essential aspects of both entrepreneurship and entrepreneurial orientation.

It is true that these researchers apprehend the multi-facets that are required to studyentrepreneurial orientation and entrepreneurship activities. They select the most representative

aspects along which the essential elements in entrepreneurial orientation are expected to be

described and analyzed. Thus all the researchers indeed try to take into account the aspects

reflecting the essence of entrepreneurship and entrepreneurial activities. However, all the

researchers rarely probe into the aspect of management professionalization that is one of the

most important aspects making the essence of both entrepreneurial orientation and

entrepreneurship. As has been discussed, entrepreneurs are different from professional

managers, but it will never be accepted that management competence is of less importance to

entrepreneurs because professional qualification is one of the prerequisites that decide their

business success.

The three dimensions put forth in the 3D on EO theory, when discussing the content and design

of this PhD research, actually is the revision of the previous multi-dimensions used by

entrepreneurship researchers such as Lumpkin & Dess, Claive & Steven, and Weaver, etc. for

entrepreneurial orientation research. Due to the importance of the management & organization

competence in both entrepreneurship and entrepreneurs management activities, management

professionalization is introduced and utilized as one of the three dimensions.

In research of entrepreneurial orientation, innovation and innovativeness, risk handling & riskproactiveness, and management professionalization are taken as the most important 3 domains

along which a very realistic way to describe the value of entrepreneurial orientation is expected

to be made available in a reliable way.

By using the modified three dimensions, to find out the realities existing in entrepreneurial

phenomena in terms of entrepreneurial orientation is thus made feasible. The comparative

research on entrepreneurial orientation is to be made, by employing the same three dimensions,

expecting true and realistic consequences to be acquired within the three dimensions. Using

this 3D-on-EO-theory is believed to indicate a new method to assess the holistic value of a

company as well as its acting entrepreneurial team.


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