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Purpose – Strategic change is critical for firms suffering greater environmental uncertainty, but how can firms change their strategies quickly? The purpose of this paper is to examine the impact of entrepreneurial orientation (EO) on the speed of strategic change (SSC) together with the moderating effect of strategic flexibility (composed of resource flexibility (RF) and coordination flexibility (CF)). Design/methodology/approach – A survey instrument of 351 Chinese firms obtained through the face‐to‐face interview method is used to empirically test the hypotheses. Findings – This study finds that EO has a positive impact on the SSC. In addition, the moderating effect of RF on the relationship between EO and the SSC is inverse U‐shaped, while that of CF is positive. The findings indicate that both EO and strategic flexibility are important antecedents of the SSC. Originality/value – This study adds an in‐depth understanding on the roles of EO and strategic flexibility as the antecedents of the SSC.
Chinese Management Studies – Emerald Publishing
Published: Aug 30, 2011
Keywords: China; Organizational change; Entrepreneurial orientation; Speed of strategic change; Strategic flexibility; Corporate strategy
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