Enhancing Entrepreneurial Orientation in Dynamic Environments: The Interplay between Top Management Team Advice-Seeking and Absorptive Capacity

In this study we develop and test a model of how top management teams (TMT) can enhance entrepreneurial orientation (EO) in dynamic environments. From an upper echelons perspective, we argue that TMT external advice-seeking and TMT absorptive capacity interactively impact the ability of top managers to enhance EO when environments are dynamic. Our findings suggest that given the uncertainties and complexities arising in dynamic environments, TMT external advice seeking alone does not aid TMTs in devising entrepreneurial strategies. It is only when TMTs combine external advice seeking with absorptive capacity to make sense of the formulated judgments of dissimilar others that they achieve higher EO. We discuss implications for theory and practice.