Building a Theoretical Model of Entrepreneurial Venture Growth: An Alternative Perspective

Abstract

Despite the low theoretical developments in the Entrepreneurial Venture Growth literature, entrepreneurial ventures require growth to provide economic development, to create wealth and employment. However, some entrepreneurial ventures register for high growth whereas others do not. Adding to that, Azevedo, & Ortiz (2011) write, the main cause for firm growth and success can be found inside of the firm. Despite the wide ranging factors ‘inside the firm’, Entrepreneurial Orientation (EO) acts as the strategy of an entrepreneur and the notion of Core Competencies (CC) covers intrinsic resources and capabilities of the entrepreneurial venture. Given these two antecedents of entrepreneurial venture growth, we intend to develop a comprehensive theoretical model of Entrepreneurial Venture Growth. Pertaining main propositions and sub-propositions were developed based on the constructs identified. Entrepreneurial Orientation viewed in a five dimensional framework and Core Competencies was defined rationally. Moderators of entrepreneurial venture growth and core constructs were conceptualized and rationalized and the theoretical framework developed subsequently. We argue that the associated concepts (EO and CC) can be justified as predictors of Entrepreneurial Venture Growth. Also, the application of these constructs in a different setting has important implications. We suggest more scholarly investigations are required in this regard.