Operational flexibility-entrepreneurial orientation relationship: Effects and consequences

The purpose of this paper is to investigate entrepreneurial orientation (EO) a performance relationship in the hospital industry, an important part of the world economy. We also examine the moderating role of operational flexibility (OF), a relatively new multi-dimensional construct grounded in the theory of operations management. We empirically investigate the EO and performance research model using survey data from 152 hospital administrators in the US. The findings confirm EO as a three-dimensional construct comprising innovativeness, proactiveness, and risk-taking, with proactiveness as the most significant dimension in enhancing hospital performance. Results indicate that OF and its three dimensions (input, process and output) moderate the effects of EO on hospital performance. This study contributes to the research stream by investigating the intersection of the corporate entrepreneurship and operations management fields. It provides a novel extension to the entrepreneurship literature, based upon the role of OF as a moderator in the EO-performance relationship.