Firm Performance and Entrepreneurial, Market and Technology Orientations in Korean Technology Intensive SMEs

Abstract

This study investigated the relationships between entrepreneurial-market orientations and entrepreneurial-technology orientations and the impact of market and technology orientations on firm performance in Korean technology intensive small and medium-sized business (SMEs). To conduct the analysis, the study applies structural equation modeling (SEM) to understand the direct effects of entrepreneurial on market and technology orientations and the direct effects of market and technology orientations on firm performance. This research is based on a study of 347 technologies intensive Korean SMEs and the major results are as follows: The results indicate that entrepreneurial orientation directly affects market and technology orientations. This result implies that entrepreneurial orientation is key factors that influence market and technology orientation in Korean SMEs. Another finding suggests that market and technology orientations positively affect firm performance. It appears that Korean companies require the capability to serve technology well, but also need to recognize new business opportunities from within their current market relationships. The implication here is that for Korean technology intensive small firms, entrepreneurial orientation can improve market and technology orientations. The results suggest that to achieve high levels of firm performance, Korean companies need to balance the elements of entrepreneurial, technology and market orientations.