Organizational researchers have long recognized the important role that top managers
play within entrepreneurial firms (Ireland, Hitt and Sirmon 2003). Utilizing
Covin and Slevin’s (1989) conceptual framework, the current study explores three
key entrepreneurial characteristics of top managers and the impact these characteristics
have on firm performance. Specifically, we argue that top managers with a
high tolerance of risk, those who favor innovative activities and those who display
a high degree of proactiveness will positively impact firm performance. In addition,
this study examines the influence of top managers’ prestige, structural and expert
power on the relationship between entrepreneurial orientation and firm performance.
We conclude the study with a discussion of theoretical and practical implications
of our findings and suggestions for future research in this area of study.