economic models (3) energy and environment;(3) participation and open governance,(4) science, culture and education;(
environment for DSI to flourish Research Methodology To examine the emergence of digital social innovation (DSI) in Europe,
-ing and inclusion, Sustainable socioeconomic models, Energy and environment, Participatory open government, Smart public services, Pioneering science, culture & education
knowledge and education, to new ways of improving the quality of the environment, to mass scale behav
-riety of domains ranging from health and well-being, to democracy, sustainability and environment, and public service delivery
3) energy and environment;(3) participation and open governance,(4) science, culture and education;(5
Energy and environment 78 Work and employment 78 Finance and economy 76 Science& Technology 60
are beginning to aggregate the layers of data that increasingly permeate the urban environment in order to
within the learning environment 27 Table 4 Â Health wellbeing and inclusion Sustainable socio -economic
environment Participative open government Pioneering science culture & education Smart public services Open Networks Confine
and makes their city smarter, in terms of innovative and efficient infrastructure, the environment, quality of life, modern administration and engaged citizens.
-panies try and test their services with citizens in a real life environment and thus improve their competi
digital environment is one example of this, as is the work by the social innovation research project TEPSIE
from the environment Open Vienna City SDK Open knowledge co-production of new knowledge and crowd
Wireless Sensor Network that manages Open information in an Open environment. An OSN stands for an
point within a wireless environment Sensor networks are used widely in the fields of mobility, transport, environment, geography, meteorology
and tourism. They are key infrastructures of a smart city by providing basic data on the usage of energy
global socioeconomic environment The Ecosystem metaphor emphasises the need for a holistic and multi-stakeholder approach that Europe
Energy and environment, Smart public services, Pioneering science Technology Trends: Open Networks, Open Knowledge, Open Hardware
environment (based on Processing. Arduino projects can be stand-alone or they can communicate with software running on a computer (e g
the Java environment is released under the GPL and the C/C++ micro controller libraries are licensed under the LGPL
with most staff working collaboratively in a â€oevirtual office†environment from four continents so as to ensure †even the smallest contributions go
education, environment & sustainability, anti-discrimination, equality & social justice, health, human rights, international development, public
to deliver services in urban environments. With governments around the world looking at open data as a kick start for their economies
on and around the public domain in the digital environment by high -lighting the challenges arising from the increasingly complex interface
public domain in the digital environment and related topics Activities include publications, meetings, conferences, projects, consul
changing environment requires the deployment of distributed service infrastructures that exploit locality, react to environmental changes and
Health and wellbeing, Energy and environment Technology Trends: Open Networks, Open Data, Open Knowledge DSI activities:
To enhance its potential by creating a more favourable environment social, cultural, political, economic To raise its visibility by searching for promising initiatives and communi
by DEFRA (the Department for Environment, Food and Rural affairs based in the UK) and conducted by the University of Bath to explore the
Health and wellbeing, science, energy and environment, participation and democracy Technology Trends: Open networks, Open data, Open knowledge, Open hardware
improving their own environment and making it more sustainable. The project does this by providing capabilities for environmental monitor
•Involving citizens in the process of monitoring the environment, com -bining objective and subjective measures •Enhance citizens†awareness
of the environment; social networking tools, which allow effective data and opinion collection, and real-time information spreading processes
Environment Technology Trends: Open Networks, Open Hardware, Open Knowledge DSI activities: A network, hosting makerspace/hackerspace,
environment, and builds an open network based on that, in which open knowledge is being shared. It engages different parties in digital social
†health food access and equality, environment, food security, and com -munity cohesion. †Part of the difficulty in assessing the impact of the project relates to the
-tion environments for DIY product designers In addition to showcasing opportunities for DIY making, Make also sell
Insecure funding environment: Funding streams normally come and go much faster than project will need them to survive. â€oereal change move
key funding and a favourable funding environment (grants with loose ties) were critical to mysociety succeeding in 2003/4.
Environment Agency Austria, small municipality of Engerwitzdorf, City of Graz Region of Styria and others.
platform seeks to create a more sustainable environment, where people instead of purchasing products borrow or share products already bought
Limited storage space in dense urban environment preventing consum -ers to keep all the goods they occasionally use
suitable for harsher environments in many developing countries Its small size and portability make it suitable for applications that other
off-grid environments Other than the fact that the demand for the Raspberry Pi computers have exceeded far the team†s original predicted figure of 10,000 (with
Raspberry Pi ICT learning environment was installed at Dachio Primary and JHS Schools, which included 6 Raspberry Pi†s. These have been net
work more easily in electrical off-grid environments, making it an ideal device for educational purposes in developing countries, etc
Offline Environments: While the Pi†s design ensures it is suitable for off-grid environments, this alone does not overcome other infrastruc
-tural barriers, such as there being limited or no Internet access. For this reason Khan academy Lite was developed as an offline version ofâ Khan
Health and wellbeing, Energy and environment, Participation and democracy Technology Trends: Open Networks, Open Hardware, Open Data, Open Knowledge
Health and wellbeing, Energy and environment Technology Trends: Open Networks, Open Data, Open Knowledge, Open Hardware
real time, and thus help improve the environment quality What is the social impact it is
used for the purpose of monitoring the environment. It focuses the im -pact of new technologies at different scales of human habitat, from the
city†s work on improving urban environments. The Amsterdam Smart City project is, in partnership with Waag Society, planning on deploying
information sharing in safe, productive environments Growth in Tor relays and bridges resulting in improved capacity,
environment Participative open government Pioneering science culture & education Smart public services Open Networks Confine
allow business decisions to be made by companies in an environment of stability Key elements of the vision include
compatible with a competitive commercial environment: it reduces investment risk Smartgrids: The Vision Europe†s electricity networks in 2020 and beyond will be
companies in an environment of stability Smartgrids Why take action now New technologies-for generation, networks, energy storage, load
•The Environment: Besides issues of primary energy supply, the major disadvantage of fossil fuels is that they emit CO2, SO2, NOX and other pollutants
on the environment 3. Driving factors in the move towards Smartgrids The current climate demands change in the way electricity is supplied.
ENVIRONMENT 14 E u R O P E A n T E C H N O L O G Y P L a T F
ensure a favourable regulatory environment; help to develop supportive financial markets; and create attractive education
values, the environment and commerce Limited cross-border interconnections Centralised control Technology approaching an age of one century
in the values in society, in the environment and in commerce. Thus security, safety environment, power quality
and cost of supply are all being examined in new ways and energy efficiency in the system is taken ever more seriously for a variety of
environment across Europe Future electricity markets The liberalisation of electricity markets is an important factor to take into account
most cost-effective basis with minimum damage to the environment, in line with European related policies
•transmission grids with minimum negative side-effects on the environment and the society •secure transmission grids that can comply with different forms of generation
is the regulatory and legal environment in which grid companies operate It is recognised that innovative approaches may from time to time be hindered by
The Eco-Innovation Observatory is financed by DG Environment of the European commission Legal notice Any views or opinions expressed in this report are solely those of the authors
Funded by the European commission, DG Environment, Brussels Layout Eco-innovate A guide to eco-innovation
competitive while respecting the natural environment Eco-innovation takes the full life-cycle perspective into account, rather than just focusing on environ
and respect the environment by reducing resource intensity of products and services Sustainable management of natural resourcesâ€
environment society politics Figure 2: Why eco-innovation 1 EIO 2010: Eco-innovation Observatory Annual Report 2010.
environment The price volatility for commodities, notably met -als, food and non-food agricultural items, was
8 European Environment Agency 2010: The European Environment. State and Outlook 2010. Material resources and Waste.
European Environment Agency, Copenhagen Eco-innovations focused on improving material and energy productivity can save costs
and lower risk by making companies less dependent on imports Eco-innovate! A guide to eco-innovation for SMES and business coaches
in the field of energy and environment by the World Economic Forum in 2012 www. electrops. it
Shields Environment recycling and remarketing Shields Environmental is a UK based company that provides support services
ec. europa. eu/environment/ecolabel Eco-labels are profiled at limas. simpple. com/resources/results-communication-eco-labels
¢www. defra. gov. uk/environment/economy/products-consumers /green-claims-labels /Learning Resources Eco-innovate products and services
Shields Environment  Source: www. shields-e. com p. 40: TECNARO  Source: www. tecnaro. de;
for the Environment from the Competitiveness and Innovation framework Programme (CIP. The Observatory has developed an
taxonomy is to create an academic environment for modeling eco-innovation, and thus to provide the
information on the environment and its risks; lack of knowledge (mostly from the management part
regarding the environment, eco-innovation, life -cycle approach, or any other method, model or measure that may reduce the impact of the company
than in the isolated environment in their own countries -Eco-innovation is being implemented mostly as a requirement of European union
Environment and Technology Management (ETM edited by David Annandale, John Phillimore and Dora Marinova, Edward Elgar, Cheltenham
the on-line and the physical environment is addressed In this context, the Commission services launched on 8 october 2012 a public
legislation and related to the digital environment. The objective of the Code is to provide simple explanations of online legal rights
relevant legislation is implemented in a digital environment at European level in particular by financing joint projects aimed at encouraging skills
digital environment and with distance selling, establishing trust can be more difficult than in a
physical environment where there is more direct person-to-person interaction between buyer and seller. This poses a challenge for consumers in determining whether the e-commerce
and consumers live in an environment where the diversity of culture, tradition, lifestyle, and language is a source of richness.
ensure that every European citizen is comfortable in the digital environment and businesses find the right talents easily
business environment and the digital economy. Or it creates a bias and competitive advantage for one channel over another.
shape the right policy and legislative environment for the future of commerce, for the benefit
and in all institutions to help shape this environment 8 of 16 ANNEX: EU POLICY CONTEXT AND SPECIFIC RECOMMENDATIONS
For a digital environment to be effective for e-commerce across the EU, ICT systems need to
environment rankings â Second, we conducted a survey of 100 senior executives on the commercial challenges of
favourable business environment are grounds for optimism about the future. The performance of other European economies is mixed, with The netherlands
conducive environment for innovation in Europe. It will not be easy, particularly for organisations with an
business environment This report has three purposes: to assess the impact of ICT on productivity in Europe;
quality of the business environment To investigate these issues, we estimated a cross -section growth model for 60 countries including 26
the business environment, or ICT and skills levels Finally, the model takes into account ICT use as well as
environment rankings, it is possible to draw a number of conclusions about the economic impact of ICT
Education and the business environment are crucial to making technology work ICT development is only one of the important factors
that the quality of a country†s business environment as well as its attention to specific ICT enablers such as
business environment, is burdened by a relatively poor performance (by EU standards) in skills training and
in creating an environment fostering technology -industry expansion is a major factor in its remarkable growth story
environment. To help identify and understand which of these factors are most important, the Economist
environment where innovation can flourish and where the benefits of ICT can be realised fully There is no reason for European countries to miss
How important are the following aspects of the business environment in enabling your company to benefit from ICT
the quality of the business environment and the economic impact of ICT. Generally speaking, the more
open and stable the business environment, the more likely that ICT use will make a contribution to growth
environment, and Europe has compared generally favourably in this area with the US and other developed countries
environment where innovation can thrive and where the benefits of ICT are readily available at all levels of the economy.
advantage of this more supportive environment to encourage risk-taking and innovation in their organisations.
create a more positive environment for innovation These include the creative use of teams, quality circles
environment for the efficient use of ICT. But ultimate responsibility for using ICT more effectively to improve
addition, the EIU€ s business environment model enables us to investigate the role of various policy
and business environment variables (measured by a synthetic index covering labour, product and financial markets) and their possible interaction
of the quality of the business environment and micro -economic policies. Further explanations of these variables are provided following table 1
quality of the business environment are interrelated though no evidence is found for any explicit interaction effect between ICT and policy variables or
business environment (on a 1-10 scale) based on indicators grouped in the following categories: policy toward private enterprise, financing con
-ditions, the tax regime, the macroeconomic environment and labour markets. The overall index is a simple average of the five category sub
superior business environment and schooling. This leaves the ICT variable accounting for the major part of the 0. 52 percentage point difference in average
environment in 2004-08 from the EIU€ s business environment rankings model The ICT index that we use for the forecasts (ICT2) is
different from the ICT index used for estimating growth in 1995-2002. ICT variables are time-specific
do European countries compare with other global markets in providing an attractive environment for ICT investment and innovation?
The business environment How would you rate the overall sophistication of ICT infrastructure in the following countries
How important are the following aspects of the business environment in enabling your company to benefit from ICT
environment in which the Union is navigating. In the long term, this may challenge the Union†s
†the long-term, international and domestic, political and economic environment facing the European Union over the next 20 yearsâ€.
increasingly socialised in ICT environments, previously existing income-determined barriers of access to political participation and education could be overcome (see discussion on e-participation and e-learning
in ICT environments) is highly likely to influence outcomes in all human social activities †political
of Ambient Intelligence Environments: The Right to Multiple Identities and the Rise of the Aivatars
Chief of Force Development, Future Security Environment 2008-2030 Part 1: Current and Emerging Trends, 2009.
The European environment †state and outlook 2010: assessment of global megatrends Copenhagen, European Environment Agency
Easterlin, R. A. 2005, Vol. 74, Issue 3). Feeding the Illusion of Growth and Happiness:
social capital needs in a social media environment. In Privacy online (pp. 19-32. Springer Berlin
††â€, World and European Energy and Environment Transition Outlook-WETO-T, Brussels: European
European Environment Agency (2013.""Global governance-the rise of non-state actors (Technical Report No 4/2011),
"Annual Review of Environment and Resources Vol. 35, No. 1, 2010, pp. 195†228 Pedro, F.,"Trusting the Unknown:
and King Sturge,"Built Environment Foresight 2030: the sustainable development imperative,"2010. As of 08/03/2013
Ugandan healthcare environments, although most of the major hospitals and the medical schools use computers for administrative purposes.
interactive environments and self managed e-learning Healthnet one of the most widely implemented computer-based telecommunications systems
environment and be able to exchange data and information on service delivery. In order to improve the efficiency
Innovative activity also flourishes in environments free of bureaucratic constraints (Link and Bozeman, 1991. A number of SMES have benefited in fact from the exodus of researchers thwarted
SMES operate in medium to low technology environments and innovate without using formal R&d inputs
established, and new enterprises are decentralised conceived†This and fluid environment also promotes the diffusion of intangible technological capabilities and understandings. †13
a diversified competitive environment, than in one dominated by large, vertically integrated producers 51. Evidence seems to indicate that diversity
and capital good suppliers in Italy has created an environment that pushes innovation forward. Manufacturers make sophisticated and ever changing demands,
highly competitive and turbulent environments in emerging economies (Covin and Slevin 1989 In line with RBV, EO,
and anticipate changes in their environments is an eminent trait of entrepreneurial firms. Linkage within its own geographic areas (ICTS) constitutes an
partnerships in response to changes in external environments faster than firms lacking such abilities. Therefore, we propose that proactive orientation enhances innovative performance
means they have a greater ability to adapt to changing environments, they may be constrained by limited access to facilities and financial resources
environments. Strategic Management Journal, 10,75-87 Cross, R, . & Jonathon, N c. 2004). Tie and Network Correlates of Individual Performance in
Usually the attention and actions of policymakers and the business environment focused on large companies and
In the actual economic environment due to globalization and ICT evolution products are outdated more quickly nowadays in comparison with some years ago because â€oewe are entering the era of the young firm. †(Jovanovic
A significant percentage of SMES use the Internet for gathering information about the business environment in
new start-ups being more adaptable to the changing business environment the government efforts should sustain the
proper economic environment in which SMES can develop and entrepreneurial initiatives could thrive is a condition
surrounding environment †firms, technology parks, technology centres, foundations, etc. †with a view to creating knowledge ecosystems that support local development, employment and social
communications, energy and environment, transport, and tourism. The active participation of technology parks (Cartuja 93 in Seville and PTA-Malaga) and technology centres, assets of the two
the ones that are able to capitalise on both the local support environment and to access non-local
economies in a globally connected environment. Spatial variations within countries suggest that not all geographical parts of a country achieve similar levels of employment, skills development, business
sectors it is difficult to see anything beyond a highly vulnerable and fragile economic environment for
capacity in an innovation-friendly environment. To help achieve this aim, the main objectives of the
making an environment and the quality of local life conducive to entrepreneurial economic activity The emphasis a region puts on any one of the two approaches is to some extent dependent on their
%iv) environment, rural development water sources and land risk prevention: 12.4%;%v) food and fisheries:
with a greater variety of actors and across diverse institutional environments, are more likely to
environment and risk prevention on the other The Spanish labour market differs somewhat from that of most European countries.
sciences, Environment, Renewable Energies and Agriculture, Cultural and Creative Industries ANDALUCIA EMPRENDE ANDALUCIA EMPRENDE has a network of 1 000 people to assist, advance, mentor, and train
actively contributing to the creation of an environment of innovation capable of reducing the gap with
environment for frequent exchanges between academic researchers and industry counterparts; and international partnerships are becoming more important as research parks seek to attract more
environment for start-ups and SMES Because a broad policy agenda can be addressed through an emphasis on entrepreneurship
employment, innovation, economy, social cohesion, and environment. However, by 2005 it was apparent that the goal was overly ambitious.
which in turn, requires greater levels of entrepreneurship, improved business environments, and development of a strong and sustainable economic base.
Environment, natural surroundings, water resources and risk prevention (29.7%of total expenditure ï Priority 4:
The institutional environment in the region is incredibly dense: an extensive network of institutions, policies, programmes and projects now exists,
financial environment Opportunities Firstly there is a low but growing level of entrepreneurial culture in the region.
rate of firms reared in an incubator environment should be significantly higher than the business
levels of innovation, internationalisation and the quality of the support environment in the region, and
support environment for the different types of SME before proposing a number of learning models that
An analysis of the SME development policy environment Andalusia has established a well state-driven policy environment supporting
and advising SMES Discussions with the various agencies also revealed a high degree of consensus regarding the problems
in this sense the ones that are able to capitalise on the local support environment, but also to access
In an environment of shrinking business support, more targeting of SME activity in this direction should be encouraged,
which food is produced, the consequences for health and environment, and the subsequent importance of the visibility of the food chain.
of the business environment †does not force the firms to cooperate if they are inclined not
Environment and Planning A. 35 9, pp 1689-1706 Isaksen, A. 2003 National and regional contexts for innovation.
Maskell, P. 1998 Successful low-tech industries in a high-cost environments: the case of the Danish
Table 3. Environment †main definitions 27 Table 4. Absorptive capability (ACAP) and organizational learning
not equally suitable in all environments (e g.,, Covin and Slevin, 1989; Robertson and Chetty, 2000;
That is, in an uncertain environment where an atmosphere of high risk predominates, fewer opportunities, and with
Over the last few years, the business environment, in Spain and elsewhere, has grown increasingly hostile and it can certainly be argued that the external environment may
have a strong impact on SME viability and growth. In this sense, an entrepreneurial behavior has become an increasingly important survival condition (Bouchard and
environment means that both entrepreneurial and conservative companies must develop characteristics that enable them to cope with their environments (Yamada and Eshima
2009; Yeoh and Jeong, 1995 2. 2. The importance and relevance of entrepreneurial SMES for contemporary societies
Precisely, over the last three years the SMES environment, in Spain and elsewhere, has grown increasingly turbulent
operate in a benign environment. Nonetheless, is especially important to highlight that SMES are closely related to the creation of new products and process techniques. â€oein
2 For the purpose of this study, it was decided to operationalize the external environment according to its
) This environment-framing method has regularly been used in the past, with researchers making the distinction between hostile and benign environments (e g.,
, Covin and Slevin, 1989; Miller and Friesen, 1983; Robertson and Chetty, 2000 16 empirical evidence on the relationship between network usage, EO and SME growth.
the environment 9 Does network usage contribute to EO development 9 Is there a positive relationship between EO
environment 9 There is a positive effect of network usage on EO development 9 EO and firm networks exert a positive
dynamic (sometimes hostile) environments in which many SMES operate, it can be used to identify entrepreneurial opportunities,
which conforms to the changing environment through the identification of variables that produce the greatest impact, where the structure and
environment. Namely, this approach is based upon the idea that organizations must adapt their structures, internal processes and behaviors to the contingencies they face
within a given environment, which can be more or less hostile and uncertain Khandwalla, 1972 In summary, the central idea in the contingency perspective suggests that there is no
and environment to the EO dimensions of innovativeness proactiveness and risk-taking propensity Especially the environment has long been considered one of the critical contingencies in
organizations theory and strategic management. Consequently, it is highlighted always as a critical contingency or contextual factor in the EO-performance relationship.
2006) Environment dynamism environment hostility Strategic decision-making strategic formation mode strategic learning from failure firm size, and firm age
Lumpkin and Dess 1996 Dynamism, munificence complexity, industry characteristics Size, structure, strategy, firm resources, culture, top CEOS
External environment benign versus hostile export channel structure organic versus mechanistic Strategic orientation Source: Self-elaborated
recognition of the importance of external forces in unpredictable environments (See Table 3). Currently, it is acknowledged that external environmental factors may have a
or, even, other environment dimensions such as dynamism, often called uncertainty (Miller and Friesen, 1983), level of industry
Friesen (1983), hostile environments, like dynamic ones, intensify challenges to the firm, and often complicate these challenges.
within a specific environment characterized by some degree of hostility and uncertainty Thus, the classification that would be used frequently in the literature stresses two
different scenarios, hostile and benign environments. Hostile environments are described by Khandwalla (1976/77; 1977) as stressful, very risky, with few
opportunities. In this sense, Covin and Slevin (1989) added that a hostile environment is characterized by intense competition, overwhelming business climate and relative lack
of opportunity for exploitation. Conversely, a non-hostile or benign environment is one that has none of the characteristics above,
but, instead, provides investment opportunities and has a favorable climate for business (Covin and Slevin, 1989
Table 3. Environment †main definitions Study Label Characteristics Lawrence and Lorsh 1967 Uncertainty Which is characterized by
environment When competitors†product change rapidly or when customer needs fluctuate Source: Self-elaborated 3. Absorptive Capability and Organizational Learning Theory
Miller (1983) The paper Strategy making and environment: the third link, proposes three hypotheses related to the
environment. In this paper the author proposes his definition of what will become the foundation of the
benign environments, the authors discuss the concepts of â€oeentrepreneurial†and â€oeconservative†strategic postures based on two major imports:
adopt in a given environment (highlighted in the research of 1989). ) Their seminal article, A conceptual model of
external environment 1. Introduction It is well-known that there is a large body of literature regarding aspects of firm
is not equally suitable in all environments (Covin and Slevin, 1989; Robertson and Chetty, 2000;
between EO and firm performance is contingent upon the external environment as well as upon internal organizational processes (Tang et al.
Equally important, the EO-environment fit may play an essential role in the firm†s ability to improve its profitability
processes, responding to changes that occur in its environment, assuming a proactive strategic posture, and so on.
of a firm to anticipate changes in its environments, we can state that firm generates a
Thus, the external environment is always highlighted as a critical contingency or contextual factor in the EO-performance
environment. The importance of proper alignment of the strategy with the environment means that both entrepreneurial and conservative companies must develop
characteristics that enable them to cope with their environments (Yeoh and Jeong 1995). ) In this vein, Yamada and Eshima (2009) argued that the external environment
may have a strong impact on small firms†viability and growth 50 This stream of research draws on Khandwallas†s contingency perspective (1972), who
pointed out that the performance of a company should not be measured only in terms of organizational attribute (structure, management style, etc.
the fit of these dimensions within a specific environment characterized by some degree of hostility and uncertainty.
stresses two different scenarios, hostile and benign environments. As mentioned earlier Chapter II, Section 6), hostile environments are described by Khandwalla (1976/77
1977) as stressful, very risky, with few opportunities. In the same way, Covin and Slevin (1989) added that the hostile environment is characterized by intense
competition, overwhelming business climate and relative lack of opportunity for exploitation. Conversely, the non-hostile or benign environment is one that has none of
the characteristics above, but rather provides investment opportunities and has a favorable climate for business (Covin and Slevin, 1989;
entrepreneurial strategy changes according to the external environment being hostile or benign. Entrepreneurial firms benefit especially in hostile environments (Covin and
Slevin 1989. It is expected because the success of these firms is generated by their competitive efforts that seek to gain
Robertson and Chetty (2000) say that environments characterized by high levels of uncertainty are used to encourage greater levels of innovation and risk-taking, which
environments the relationship between EO and performance may be less significant Entrepreneurial behavior involves more risk than does a conservative behavior.
and Slevin (1989) argued that in a benign environment it is not necessary to take
between EO, environment and profitability. Thus, the core focus of H2 is illustrated in Figure 1. So,
Entrepreneurial SMES (high EO), operating in a hostile environment, will have better profitability than will entrepreneurial SMES operating in benign environments
H2b. Conservative SMES (low EO), operating in a benign environment, will have better profitability than will conservative SMES in hostile environments
Figure 1. EO and environmental hostility: impact on firm profitability 3. Research Design 3. 1. Sample and data collection
The companies included in this study were selected based upon three criteria: First, all firms develop manufacturing activities.
to the independent variables entrepreneurial orientation and hostile environment. The questionnaire is presented using a 7-point Likert scale,
environment in which the company operates is. The scale obtained an average of 4. 419
The environment was classified as benign or hostile, depending on the degree of hostility perceived The EO index is located between one and seven, with the highest score indicating more
environment. Thus, the environment is considered to be hostile when the index is greater than or equal to four,
and is considered benign when the index is less than four At the moment the survey was done, a third part of the SMES considered their
environment as benign, especially companies in the food and beverage industry Conversely, two-thirds of the SMES saw their environment as hostile.
For example, in 60 the pharmaceutical manufacturing industry, all companies considered their environment as stressful and very risky
Table 11 summarizes the main statistics (i e.,, mean scores and SDS) and the correlation matrix of key variables considered in the study.
a hostile environment, and 0 in other cases) from the function; nonetheless, the regression results are interpreted considering the category removed.
not surprisingly, these conservative SMES operating in hostile environments presented the worst performance among all firms in the sample
business in a hostile environment, and 0 in other cases dco be dummy variable coded 1 for firms with a conservative orientation doing business
in a benign environment, and 0 in other cases deo be dummy variable coded 1 for firms with a entrepreneurial orientation doing
business in a benign environment, and 0 in other cases By using this model we can consider the full sample in the regression analysis,
with EO, operating in a hostile environment, will have better profitability than SMES with EO in benign environments †Confirmed.
Further, entrepreneurial SMES doing business in a hostile environment present higher performance in all ratios than do
entrepreneurial SMES doing business in a benign environment (e g.,, ROA: EO HE =526 and EO BE=.=188;
ROS: EO HE=.=463 and EO BE=.=145; FCF: EO HE=.=770 and EO BE=.=297 By observing the performance of conservative firms,
operating in a benign environment, will have better profitability than will SMES with a low EO in hostile environments †Confirmed.
Conservative SMES have higher financial performance in a benign environment than in a hostile one (CO BE>CO HE.
For example, conservative firms operating in a benign environment present a ROA of 0. 252
p<.05) and a FCF index of 0. 324 (p<.01), higher than do conservative firms in a
hostile environment 63 Table 12. Results of regression analyses ROA ROS FCF Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
environment in a contingency model. We thereby fill a significant gap, namely, this study contains two important novelties with regard to previous research.
operating environment. A similar conceptual model has been applied in previous literature (Covin and Slevin; 1989; Robertson and Chetty, 2000;
environment, as stressed in other studies but, nonetheless, contrary to that presented by Chow (2006), who confirms the link between EO
ability to operate in both hostile and benign external environments (overall results highlighted that entrepreneurial SMES are more profitable in general than conservative
operating in a benign environment presented results as equally well as entrepreneurial SMES in the same operating environment.
Namely, these results lead us to conclude that the crucial need for product innovation, proactive behavior and risk-taking propensity is
more clearly in firms which operate in hostile environments In conclusion, our findings emphasize that the strategic orientation of the firm should
Thus, in an uncertain environment where an atmosphere of high risk predominates, few opportunities, and with tremendous competitiveness, an
explained by the characteristics required by the hostile environment (i e.,, companies with an entrepreneurial profile,
network as a knowledge-based resource with the ability to influence the environment As noted by Hansen (1995),
anticipate changes in its environments and generate competitive advantage from these postures, the opposite of proactive behavior is passive and reactive behavior (Covin and
advantages in a firm†s environment (Gulati et al. 2000; Hite and Histerly, 2001 76 Johannisson et al.
companies particularly due to the fact that the economic environment is becoming increasingly competitive (Madsen, 2007), it is interesting to note that previous research
networks to influence the environment and the use of employees†networks as an information source, respectively.
environment of the economic crisis in which our research is inserted. It would be explained by a stochastic factor, namely,
knowledge-resource, the use of networks to influence the environment and employees†networks as an information source.
influence the environment, improve the proclivity of higher levels of EO and thus achieve high levels of growth.
as well as entrepreneurial spirit in companies†environments can be valuable to society as a whole because they represent more than just
adjust their strategy to the environment and use their networks to develop entrepreneurial orientation and grow
importance of the proper alignment of the EO with the environment. Thus, in the first
Entrepreneurial SMES (high EO), operating in a hostile environment, will have better profitability than will entrepreneurial
SMES operating in benign environments H2b. Conservative SMES (low EO), operating in a benign environment, will have better profitability than will conservative SMES in
hostile environments 2 H3. A firm†s emphasis on using networks will affect EO development positively.
Confirmed H4. SMES growth in the long-term is more likely when the firm has a higher EO.
capability to operate in both a hostile and benign environment without compromising their outcomes. Hence, the task for CEOS is to design
necessity of firms to develop superior EO, especially in hostile environments, because it is where a greater degree of creativity,
influence the environment, and improve the proclivity of higher levels of EO and growth. That is, business managers should
environments -by recommending the continued and consistent use of networks to secure crucial resources -by recommending
entrepreneurial posture and operating environment. Thus, we also suggest that an interesting extension of this study would be a cross-time analysis based on strategic
The fiscal environment for entrepreneurship. In. The Environment for Entrepreneurship, Kent, C a. Ed.),Lexington Books, Lexington, MA, 59-68
Bouchard, V. and Basso, O. 2011. Exploring the links between entrepreneurial orientation and intrapreneurship in SMES.
and benign environments. Strategic Management journal, 10,75-87 Covin, J. G. and Slevin, D. P. 1991.
environment. International Business Review, 13,19-41 Donaldson, L. 2001. The contingency theory of organizations. Sage Publications
Prospering in dynamically-competitive environments organizational capability as knowledge integration. Organization Science, 7 375-387
Environment, strategy, structure, and performance in the context of export activity: an empirical study of Taiwanese manufacturing
Environment and its impact on the organization International Studies of Management & Organization, 2, 297-313
Organization and environment. Harvard Business School, Cambridge Lee, C. Y. 2010. A theory of firm growth:
the impact of culture, education and environment. The Journal of Entrepreneurship, 17,15-35 147 LÃ pez Rodrã guez, J. and Garcã a Rodrã guez, R. 2005.
the moderating role of environment and industry life cycle. Journal of Business Venturing, 16,429-451 Lumpkin, G. T.,Wales, W. J. and Ensley, M d. 2006.
Strategy-making and environment: the third link Strategic Management Journal, 4, 221-235 Miller, D. and Tolouse, J. M. 1986.
export channel structure and environment: a proposed conceptual model of export performance. European Journal of Marketing, 29,95-115
environment (both domestic and international within which your firm operates 3 Very safe/risky Likert 1-7
An environment that my firm can control and manipulate/dominating environment which my firm†s initiatives count for very little against
tremendous competitive Likert 1-7 Appendix 4. Firm network scale measurement No. of items Type of
Use of networks to influence the environment. Likert 1-7 Use of employees†networks as an information source.
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