Relationship between entrepreneurial behaviour of firms

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Entrepreneurship researchers are interested in the relationship between entrepreneurial behaviour of firms, such as innovation or new business venturing, and performance indicators, such as sales growth or profitability. The R2 values in many of these studies are generally low (values of 0.2 or 20% can be typical).

Does this mean that the models are of little use? Any examples?

Reference no: EM1395727

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