Antecedents of innovation and growth: analysing the impact of entrepreneurial orientation and goal-oriented management

For technology-oriented SME, innovation and growth are important aspects of firm performance. A strategic orientation that emphasises entrepreneurial behaviour (entrepreneurial orientation, EO) may be an effective way to obtain these goals. However, there is little information on the internal organisational processes that link EO to innovation and growth. In this study, the performance implications of goal-oriented management techniques (GoM) such as management by objectives (MbO) on innovation and growth in the context of EO are analysed on a sample of 165 fast growth technology-based ventures from Germany. The results show that EO has a positive impact on innovation and growth, with innovation being a partial mediator. In addition to that, EO seems to be negatively related to the degree to which GoM is used, while GoM itself has a negative relationship with innovation.