Entrepreneurial behavior and risk-taking: unpacking institutional effects on the performance of Chinese SMEs

We explore the influence of two dimensions of entrepreneurial orientation (EO), entrepreneurial behavior (innovativeness and proactiveness) and risk-taking orientation on the international performance for SMEs in China. Drawing on institutional theory, we also examine whether the regulative, cognitive, and normative pillars are antecedents to the two dimensions of EO. SmartPLS analysis of survey data gathered from 210 SMEs reveals that entrepreneurial behavior positively affects international performance and fully mediates its relationship with risk-taking orientation. The cognitive pillar is related to both EO dimensions, the regulative pillar is related to risk-taking orientation, and the normative pillar is not significant.