The Value of Directive Management Among High-Tech SMEs: An Entrepreneurial Orientation Approach

Empirical studies have often found that the exhibition of an entrepreneurial orientation (EO) promotes firm growth. However, specific management-related factors that strengthen the relationship between EO and firm growth – in particular, the managerial approaches and philosophies that facilitate the effectiveness of EO – have received relatively little attention by researchers. Using data from 136 manufacturing-based small-to-medium-size enterprises (SMEs) operating in the high-tech sector, we theorize and test that the relationship between EO and sales growth rate is promoted in the presence of “directive management,” which we define as a specific management planning and control philosophy. Our results indicate that the relationship between EO and sales growth rate is strengthened among high-tech SMEs that exhibit tight control over their new product-market initiatives and embrace stable, long-term business objectives.