This study empirically investigates the relationship between collective entrepreneurial capability and small business performance in different environmental conditions. A hierarchical multiple regression analysis of data from more than 100 small businesses shows that the collective entrepreneurial capability of a small business is positively associated with its competitive performance. Among the three investigated environmental dimensions, environmental dynamism is found to have a positive interaction effect with collective entrepreneurial capability on small business performance. Environmental hostility is found to have a negative interaction effect with collective entrepreneurial capability on small business performance. No interaction effect is found between environmental heterogeneity and collective entrepreneurial capability. Implications of this study are discussed.
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