Dominant Logic and Firm Performance in Entrepreneurial Contexts
Summary
Dominant logic refers to the collective mindset and underlying assumptions that guide managerial decision-making and resource allocation within a firm. In entrepreneurial settings, this construct shapes how nascent firms interpret market signals, configure capabilities and pursue opportunities. Cognitive dominant logic encapsulates the mental models and belief systems that inform strategic appraisal, while practiced dominant logic comprises the routines, processes and behaviours that operationalise those beliefs. Together they influence a venture’s capacity for strategic renewal, capability development and performance outcomes. Research emphasises that in dynamic environments, alignment between dominant logic and entrepreneurial orientation heightens adaptability, drives innovation investment and underpins sustainable growth. Misalignment or rigidity in dominant logic, however, can impede opportunity recognition and limit market responsiveness. Understanding the interplay between cognitive frames and enacted practices thus offers critical insight into how emerging firms convert entrepreneurial intent into superior performance, especially under conditions of uncertainty and resource constraints.
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Dominant Logic and Firm Performance in Entrepreneurial Contexts publication trend
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Technical terms
Dominant logic: A firm’s overarching managerial mindset and set of assumptions that direct strategic choices and resource deployment.
Cognitive dominant logic: The mental frameworks and belief systems through which managers interpret market opportunities and threats.
Practiced dominant logic: The enacted routines, processes and organisational behaviours that operationalise cognitive assumptions.
Strategic renewal: The systematic reconfiguration of resources and capabilities in response to environmental change.
Entrepreneurial orientation: A strategic posture characterised by innovativeness, proactiveness and willingness to take risks.
References
- Dominant logic – Cognitive and practiced facets and their relationships to strategic renewal and performance. European Management Journal (2024).
- Clarifying the Dominant Logic Construct by Disentangling and Reassembling its Dimensions. International Journal of Management Reviews (2020).
- The Entrepreneurial Orientation-Dominant Logic-performance relationship in new ventures: an exploratory quantitative study. BAR - Brazilian Administration Review (2012).
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