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

Yun Hee Cho and Joo-Heon Lee
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Yun Hee Cho: College of Government and Business, Yonsei University, 1 Yonseidae-gil, Wonju, Gangwon-do 26493, Korea
Joo-Heon Lee: College of Government and Business, Yonsei University, 1 Yonseidae-gil, Wonju, Gangwon-do 26493, Korea

Sustainability, 2020, vol. 12, issue 11, 1-19

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.

Keywords: entrepreneurs; entrepreneurial orientation; market orientation; learning orientation; mediating effect; multiple regression analysis; financial performance; competitive advantage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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