What Role EO Dimensions Play when a Country is Introducing Economic Liberalization?

Many emerging economies are going through a process of economic liberalization that reduces government restrictions on domestic firms and at the same time opens up the domestic market to foreign competition. We apply the Entrepreneurial Orientation (EO) framework and examine its applicability in an emerging economy. Drawing from the contingency theory, we focus on specific contextual variables that may play a role in determining the behavior of established firms towards the adoption of EO dimensions in India. Our framework proposes that depending on the varying contextual situations, the starting point or the early adoption trigger for the adoption of EO is different among diverse categories of firms when experiencing market conditions that have changed. Propositions are developed and implications concerning theory building as well as managerial decision-making are discussed. In the conclusion we discuss the generalized applicability of the framework to other emerging regions.