Composition,Dimensional Issue and Nature of Entrepreneurial Orientation (EO) Construct

Entrepreneurship is considered as an important driver ofeconomic growth, new firm creation, business rejuvenation&job creation. Over a period of time research withinentrepreneurship literature has shifted from entrepreneurandhis personality to his behavioral disposition. This has ledtoemergence of entrepreneurial orientation (EO) construct,which focuses on the process of entrepreneurship at firmleveland it has emerged as the most widely researched areawithin entrepreneurship field. Though research in this fieldhas been rigorous and exhaustive, still there have been concernsthat researchers might have prematurely agreed on thecomposition, dimensionality, andnature of EO Construct. There has been considerable debate about whether EO Constructcomprises three or five dimensions, about co-varianceor independence of these dimensions and nature of constructwhether formative or reflective. This article builds an argumentabout the multidimensional nature of EO constructcomprising five dimensions, which vary independentlyand thefact that EO is better explained through formative constructrather than reflective one.