Disentangling the Interaction Effect of Cost Leadership Strategy and Entrepreneurial Orientation towards Organizational Performance

Hasna Lumpingan Lidasan

Abstract


This article seeks to provide an additional understanding on the moderation effect of cost leadership strategy on the relationship between EO and organizational performance by reviewing and synthesizing available research into a conceptual framework that explains possible moderation of cost leadership strategy.  The framework presents the reconceptualization of EO into entrepreneurial behavior (adjoining innovativeness and pro-activeness) and managerial attitude towards risk (risk-taking). In addition, the framework depicts cost leadership strategy as a moderating variable that could enhance or weaken the relationship between EO and performance. Based on the arguments in this article, two major propositions were developed to refine our understanding of the moderation of cost leadership strategy. Finally, theoretical and practical implication were discussed. 


Keywords


Cost Leadership Strategy, Entrepreneurial Orientation, Organizational Performance

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