Purpose
This study seeks to highlight the dynamic nature of entrepreneurial orientation (EO) by investigating how firms respond to adversity, i.e. performance below aspiration levels through pertinent changes in EO, and if some of these changes can be accounted for based on the ownership of the firm.
Design/methodology/approach
This study adopts a multiple regression using an ordinary least square methodology on a sample of 13,333 Indian firms within the period 2005–2016 to test its hypothesis.
Findings
This research sheds light on performance feedback as an antecedent to EO as also on the effect of ownership moderating this relationship, with diversity in resource configuration and governance arrangement being the key drivers.
Research limitations/implications
This is a single country study; hence, there is a possibility of a country-specific bias. This study uses a secondary measure of EO and thus is unable to capture the entrepreneurial intentions and opinions of managers.
Practical implications
The study establishes a nuanced understanding of how ownership impacts the entrepreneurial behaviour of firms during times of adversity.
Social implications
This study may help policymakers draft appropriate policy interventions for firms at the time of adversity, so that they can improve their entrepreneurial spree.
Originality/value
This rare study from an emerging market establishes performance feedback as an important antecedent of EO. It further highlights the vital role of ownership in supporting/constraining EO.
