THE INFLUENCE OF STRATEGIC ENTREPRENEURSHIP ON FIRM PERFORMANCE: THE MODERATING ROLE OF ENVIRONMENTAL DYNAMISM & DIGITAL BUSINESS MODEL INNOVATION

Abstract

In order to exploit current markets and opportunities, cooperative exploration of new opportunities requires an enigmatic deployment of resources. Firms pursuing strategic entrepreneurship seek fundamentally new opportunities to disrupt existing competitive conditions in an industry or create and explore new markets by leveraging their entrepreneurial characteristics and observing their innovation-directed activities and behaviors. Empirical research on strategic entrepreneurship is limited due to its theoretical ambiguity and difficulties inherent in operationalizing the concept. The question of which organizational routines constitute strategic entrepreneurship, as well as how these elements can be measured, is unclear. This dissertation seeks to examine the influence of strategic entrepreneurship on firm performance and the mediating effect of dynamic capabilities and the moderating role of environmental dynamism and digital business model innovation. Data for this study were collected using a questionnaire survey from 221 firms in Saudi Arabia. The results revealed a significant relationship between strategic entrepreneurship and firm performance. The results also found that dynamic capabilities dimensions (knowledge exploitation, risk management, marketing capabilities) play a mediating role between strategic entrepreneurship firm performance. Finally, the results show that environmental dynamism and digital business model innovation significantly moderate the relationship between strategic entrepreneurship and firm performance. This dissertation contributes to the literature on entrepreneurship, innovation and digitalization by providing new empirical evidence. It also contributes to managerial practices by displaying the importance of translating strategic entrepreneurship practices into performance outcomes through dynamic capabilities dimensions.