Abstract: Based on the perspectives of resource allocation, this article integrates entrepreneurial strategic orientation (ESO), top management team (TMT) vertical dyad differences and entrepreneurial performance into a united theoretical framework, explores the acting mechanisms and influencing models among the variables involved, and tests the related hypotheses by using the sample from the listed companies of the China's Small and Medium-sized Enterprises Board for 2006-2010 period. Cluster analysis results indicate that there are three different dimensions for ESO, including “internal R&D”, “external investment” and “internal R&D+ external investment”. However, the majority of the sample companies prefers to the second dimension. Hierarchical regression analysis results show that ESO has different impacts on growth performance and profitability, but the grouping regressive results further reveal that the first dimension of ESO have no significant effect on growth performance; TMT vertical dyad differences are significantly correlated with growth performance and profitability on the whole, but the vertical dyad differences of age and tenure only give rise to partially moderating effect. The findings of this study have positive managerial implications for cultivating top management team, optimizing corporate governance mechanisms and emphasizing the direction of R&D.

Key words: resource allocation, TMT’s vertical dyad differences, entrepreneurial strategic orientation, entrepreneurial performance, R&D investment