Empirical Research of Entrepreneurial Orientation, Organizational Slack and Business Performance - An Interactive Effects Model

Abstract

Entrepreneurial orientation is a kind of strategic choice, which posed by three dimensions named prospective, innovative and risks taking. Previous studies have found that entrepreneurial orientation and business performance are positively related. But the impact of process and mechanism of its research is inconclusive. But according to the theory of organizational slack, the more human and financial resources enterprise has reserves, which would encourage enterprises to adopt more innovative attempt to explore sexuality and enterprises can also make better use of the external environment for strategic change. Therefore, this paper introduces variables named organizational slack to check its effect between entrepreneurial orientation and business performance. Clear role of regulation. Found that firstly, entrepreneurial orientation has a positive effect on firm performance. Secondly, organizational slack do has a positive regulatory role on the positive relationship between entrepreneurial orientation and firm performance. Conclusion that, for the venture, entrepreneurial orientation to achieve well-off also depends on the internal organizational slack. Surplus resources take the potential risk and failure of innovation, which encourage enterprises to fully tap the business performance value of entrepreneurial orientation.