An empirical analysis of board effectiveness on entrepreneurial orientation: Evidence from an emerging economy

Abstract

Organizations can address dynamic environmental challenges by scrutinizing organizational governance mechanisms and ensuring alignment with vision, mission, goals, objectives and strategies through an effective, well-structured board of directors and management that can monitor, direct and support entrepreneurial initiatives to achieve a sustainable competitive advantage. Adopting a quantitative strategy, data collection was carried out among the top-100 Sri Lankan listed companies. Analysis shows that the level of board effectiveness is higher than the neutral value (3.41), and the level of entrepreneurial orientation is slightly higher than the neutral value (5.05). Accordingly, entrepreneurial orientation in Sri Lankan listed companies is significantly (p<.05) predicted by board effectiveness. The study draws the attention of authorities and policy makers to the need to incorporate entrepreneurial characteristics for
established large-scale organizations in achieving sustainable competitive advantage.
Keywords: Board effectiveness, entrepreneurial orientation, listed non-financial companies, Sri Lanka