The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance

doi:10.13189/ujm.2014.020704

Journals Information

Universal Journal of Management Vol. 2(7), pp. 285 - 292
DOI: 10.13189/ujm.2014.020704
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The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance

Aluisius Hery Pratono ¹^,*, Rosli Mahmood ²
¹ Universitas Surabaya, Indonesia
² Universiti Utara Malaysia, Malaysia

ABSTRACT

Contingency theory points out the adaptive management is crucial point to sustainable firm performance. This research aims to determine the relative importance of a set of variables comprising the four entrepreneurial management variables, i.e. strategic orientation, organization culture, organization structure, and reward system, and a set of environmental turbulence variables in predicting firm performance. This research uses firm-level data with observed population of this research is SMEs in Surabaya, Indonesia. Through adopting hierarchical regression approach and partial least square method, this study indicates that moderating effect of environmental turbulence changes the direction of relationship between entrepreneurial management and firm performance. During low environmental turbulence, entrepreneurial management has positive impact on firm performance, but the direction changes. Entrepreneurial management has negative impact on firm performance during high environmental turbulence.

KEYWORDS
Firm Performance, Entrepreneurial Management, Environmental Turbulence

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Aluisius Hery Pratono , Rosli Mahmood , "The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance," Universal Journal of Management, Vol. 2, No. 7, pp. 285 - 292, 2014. DOI: 10.13189/ujm.2014.020704.

(b). APA Format:
Aluisius Hery Pratono , Rosli Mahmood (2014). The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance. Universal Journal of Management, 2(7), 285 - 292. DOI: 10.13189/ujm.2014.020704.