A Study on the Effects of Entrepreneurial Orientation and Learning Orientation on Financial Performance: Focusing on Mediating Effects of Market Orientation

Yun Hee Cho,Joo-Heon Lee

doi:10.3390/su12114594

Abstract

The primary purpose of this article was to examine the mediating effects of market orientation on the relationship between entrepreneurial orientation and financial performance. The mediation effects of market orientation on the relationship between learning orientation and financial performance were also investigated. One hundred and seventy-four valid survey questionnaires were collected from Korean entrepreneurs, who were searching for angel investments or business consultants for growth. Our unique research design allowed us to test the mediating effects of the dimensions of market orientation between the dimensions of entrepreneurial orientation and financial performance. The most important research results are as follows. First, the innovative-proactiveness dimension of entrepreneurial orientation has a statistically significant effect on financial performance, but the risk-taking propensity dimension does not significantly affect financial performance. Second, the customer orientation dimension of market orientation fully mediates the relationships between innovative-proactiveness and financial performance. Second, the competitor orientation dimension of market orientation shows a partial mediating effect on the relationship between innovative-proactiveness and financial performance. Third, learning orientation does not significantly affect financial performance. To increase financial performance, growth-seeking entrepreneurs need to improve customer orientation, competitor orientation, and innovative-proactiveness.

Highlights

Since the 1990 s, there have been continuous demands for Korea to transform into an entrepreneurial economy
As innovative-proactiveness increased by one unit, financial performance positively increased by 21.9%
Many previous studies have shown that organizations with entrepreneurial orientation tend to increase new product developments and financial performances [17,18,19,20,21]

Summary

Introduction

Since the 1990 s, there have been continuous demands for Korea to transform into an entrepreneurial economy. Entrepreneurship helps promote industry competitiveness by fostering future talents [4,5,6]. Due to those merits, most OECD countries have made entrepreneurship policies supporting and promoting early-stage entrepreneurs [7]. Producing more entrepreneurs does not guarantee industrial and economic growth [8]. These days, in Korea, more than 800,000 out of 1 million start-ups close annually. If successful entrepreneurs can be identified early, the efficiency and effectiveness of entrepreneurship support increases. We try to look for the traits of these successful entrepreneurs

Objectives

Results

Conclusion