The Prominence of Entrepreneurial Orientation and Firm Performance in the Medical Device Industry in Thailand
Article Sidebar
Main Article Content
Abstract
The objectives of this research are 1) to study the influence of the five characteristics of entrepreneurial orientation (proactiveness, competitive aggressiveness, innovativeness, autonomy and risk taking) and firm performance in the medical device industry in Thailand, and 2) to study in-depth the prominence characteristics of entrepreneurial orientation. Therefore, the research design is mixed methods. Beginning with the quantitative research, a questionnaire was used to collect data from CEO, MD and managers of 74 companies and the data were analyzed by using multiple regression analysis. The results showed that the two prominences of entrepreneurial orientation are proactiveness which has a significantly positive relationship to the firm performance at the .10 significance level; however, competitive aggressiveness significantly and negatively affects the firm’s performance at the .10 significance level. After that, a qualitative research was conducted with the case studies by in-depth interviewing with the manager of 5 medical device manufacturing companies with semi-structured questions. The in-depth findings showed that: 1) the proactiveness of medical company is to export its products which aims to increase its sale in overseas, to maximize the benefit of available resources, and to avoid price wars with the current local market that could be destroyed its future profit; and 2) the competitive aggressiveness of the medical company is unique and different from other high-tech industries that emphasize on creating innovations for its patents and to cover its competitive areas in the long term.
Article Details
The manuscript submitted for publication must be the original version, submitted only to this particular journal with no prior acceptance for publication elsewhere in other academic journals. The manuscript must also not violate the copyright issue by means of plagiarism.
References
Avlonitis, G. J., & Salavou, H. E. (2007). Entrepreneurial orientation of SMEs, product innovativeness. and performance. Journal of Business Research, 60(5), 566-575.
Baruch, Y., & Holtom, B. C. (2008). Survey response rate levels and trends in organizational research. Human Relations, 61(8), 1139-1160.
Bonaccorsi, A., Lyon, T. P., Pammolli, F., & Turchetti, G. (2000). Auctions vs. bargaining: An empirical analysis of medical device procurement. Bargaining: An Empirical Analysis of Medical Device Procurement (January 19, 2000).
Bridy, A. (2008). Trade secret prices and high-tech devices: How medical device manufacturers are seeking to sustain profits by propertizing prices. Tex. Intell. Prop. LJ, 17, 187.
Cadogan, J. W., Boso, N., Story, V. M., & Adeola, O. (2016). Export strategic orientation–performance relationship: Examination of its enabling and disenabling boundary conditions. Journal of Business Research, 69(11), 5046-5052.
Chakravarthy, B. S. (1986). Measuring strategic performance. Strategic Management Journal, 7(5), 437-458.
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87.
Cutler, D. M., & McClellan, M. (2001). Is technological change in medicine worth it?. Health affairs, 20(5), 11-29.
Dai, L., Maksimov, V., Gilbert, B. A., & Fernhaber, S. A. (2014). Entrepreneurial orientation and international scope: The differential roles of innovativeness, proactiveness, and risk-taking. Journal of Business Venturing, 29(4), 511-524.
Dubey, R., & Dubey, J. (2009). Pharmaceutical product differentiation: A strategy for strengthening product pipeline and life cycle management. Journal of Medical Marketing, 9(2), 104-118.
Frishammar, J., & Ake Hörte, S. (2007). The role of market orientation and entrepreneurial orientation for new product development performance in manufacturing firms. Technology Analysis & Strategic Management, 19(6), 765-788.
George, D., &. Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference 11.00 update (4th ed.). Boston: Allyn & Bacon.
Guo, Z., & Jiang, W. (2019). Risk-taking for entrepreneurial new entry: Risk-taking dimensions and contingencies. International Entrepreneurship and Management Journal, 1-43.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6 th ed.). New Jersey: Pearson Prentice Hall.
Harris, R. J. (2001). A primer of multivariate statistics (3rd ed.). Mahwah, NJ: Erlbaum.
Kallmuenzer, A., & Peters, M. (2018). Innovativeness and control mechanisms in tourism and hospitality family firms: A comparative study. International Journal of Hospitality Management, 70, 66-74.
Kocak, A., Carsrud, A., & Oflazoglu, S. (2017). Market, entrepreneurial, and technology orientations: Impact on innovation and firm performance. Management Decision, 55(2), 248-270.
Lechner, C., & Gudmundsson, S. V. (2014). Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), 36-60.
Li, Y., Liu, X., Wang, L., Li, M., & Guo, H. (2009). How entrepreneurial orientation moderates the effects of knowledge management on innovation. Systems Research and Behavioral Science, 26(6), 645-660.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172.
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451.
Luo, Y., Hu, Z., & Yu, K. (2018). The impact of the R&D expenditure and patent rights towards operating Performance in medical device Industry–An empirical study. Revista de Cercetare si Interventie Sociala, 61, 187-197.
Masa’deh, R., Al-Henzab, J., Tarhini, A., & Obeidat, B. Y. (2018). The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking: An International Journal, 25(8), 3117-3142.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.
Morris, M. H., & Paul, G. W. (1987). The relationship between entrepreneurship and marketing in established firms. Journal of Business Venturing, 2(3), 247-259.
Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15–23.
National Science and Technology Development Agency. (2017). Rāingānkānsưksāʻutsāhakam khrư̄angmư̄phǣtkhō̜ngprathed [Study report of the medical device industry in Thailand]. Retrieved April 18, 2018, from https://waa.inter.nstda.or.th/prs/pub/Final-Report-Medical-Device.pdf
Office of Industrial Economics. (n.d.). Rāi chư̄ phūprakō̜pkān klum watsadu thāng kānphǣt [List of medical device operators]. Retrieved April 18, 2018, from https://medicaldevices.oie.go.th/CompanyList.aspx?tid=2&id=1
Parida, V., Westerberg, M., & Frishammar, J. (2012). Inbound open innovation activities in high‐tech SMEs: the impact on innovation performance. Journal of Small Business Management, 50(2), 283-309.
Plastics Institutes of Thailand. (2015). ʻUtsāhakam klum watsadu sin plư̄ngō̜ thāng kānphǣt khō̜ng Thai [Thai disposable medical device industry]. Retrieved April 20, 2018, from https://www.thaiplastics.org/content_attachment/attach/1468318180.21-41_.1-10_.pdf
Robinson, J. C. (2015). Biomedical innovation in the era of health care spending constraints. Health Affairs, 34(2), 203-209.
Shan, P., Song, M., & Ju, X. (2016). Entrepreneurial orientation and performance: Is innovation speed a missing link?. Journal of Business Research, 69(2), 683-690.
Simmons, J. D. (2010). The effects of firm size on the entrepreneurial orientation dimensions of innovativeness, proactiveness, and risk-taking (Doctoral dissertation, Ohio University).
Turner, R. C., & Carlson, L. (2003). Indexes of item-objective congruence for multidimensional items. International Journal of Testing, 3(2), 163-171.
Wales, W. J. (2016). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3-15.
Yin, R. K. (1992). The case study method as a tool for doing evaluation. Current Sociology, 40(1), 121-137.
Yin, R. K. (2013). Validity and generalization in future case study evaluations. Evaluation, 19(3), 321 332.
Zahra, S. A., & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of Business Venturing, 15(5-6), 469-492.
Zellweger, T., & Sieger, P. (2012). Entrepreneurial orientation in long-lived family firms. Small Business Economics, 38(1), 67-84.