Exploring the antecedents of effectiveness and efficiency

Our knowledge of determinants of effectiveness and efficiency of firms continues to expand. How-ever, this knowledge remains quite fragmented and non-cumulative in the service industry. Herein,this study explores the effect of entrepreneurial and financial orientations as two key contributors toperformance in the service industry. Data for this study were collected from 182 hotels in Switzerlandto examine the effect of a financial strategic orientation and an entrepreneurial strategic orientationon two widely-used standards of business performance—effectiveness and efficiency. We hypothesizedthat these effects would be more pronounced under certain dynamic environment conditions. Findingsprovide new insights about the merits of building bridges between the entrepreneurial orientation andfinancial orientation. Within the context of existing research on strategic management, we discuss theimplications of our findings for hotel managers and address the study’s limitations and future research directions.