Environmental Adversity and the Entrepreneurial Activities of New Ventures
Vol. Volume 3, Number 2 September/1998
Shaker Zahra and Donald Newbaum
New ventures are important for the growth and prosperity of the US economy. Yet, these ventures must prove themselves, frequently under adverse environmental conditions. One major type of adversity new ventures must address is the hostility in their competitive environments. This hostility is multifaceted and can challenge some ventures and cause their failure. Other ventures, however, rise to this challenge and engage in entrepreneurial activities in their domestic and foreign markets. Such entrepreneurial activities can improve the odds of the new ventures' success and growth. This empirical study attempts to link macro, competitive, market and technological hostility to the entrepreneurial orientation (EO) of 321 new ventures in low and high technology industries. The results show that the associations between different types of environmental hostility and EO are stronger among high than low technology companies.
adversity, hostility, entrepreneurial orientation, and high technology