Composition,Dimensional Issue and Nature of Entrepreneurial Orientation (EO) Construct

Entrepreneurship is considered as an important driver of economic growth, new firm creation, business rejuvenation& job creation. Over a period of time research within entrepreneurship literature has shifted from entrepreneurand his personality to his behavioral disposition. This has led toemergence of entrepreneurial orientation (EO) construct, which focuses on the process of entrepreneurship at firm leveland it has emerged as the most widely researched area within entrepreneurship field. Though research in this field has been rigorous and exhaustive, still there have been concerns that researchers might have prematurely agreed on the composition, dimensionality, andnature of EO Construct. There has been considerable debate about whether EO Construct comprises three or five dimensions, about covariance or independence of these dimensions and nature of construct whether formative or reflective. This article builds an argument about the multidimensional nature of EO construct comprising five dimensions, which vary independentlyand the fact that EO is better explained through formative construct rather than reflective one.