The Role of Creating Shared Value and Entrepreneurial Orientation in Generating Social and Economic Benefits: Evidence from Korean SMEs

Joohwan Seo, Jiseon Lee, Sunggwang Jung and Sangil Park ()
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Joohwan Seo: Department of Business Administration, School of Business, Dong-A University, Busan 49236, Republic of Korea
Jiseon Lee: Department of Business Administration, School of Business, Dong-A University, Busan 49236, Republic of Korea
Sunggwang Jung: Institute for Education Innovation, Center for Educational Performance Management, Dong-A University, Busan 49315, Republic of Korea
Sangil Park: Division of Business Administration, College of Economics and Business, Sookmyung Women’s University, Seoul 04310, Republic of Korea

Sustainability, 2023, vol. 15, issue 7, 1-19

Abstract: This study investigates the effect of entrepreneurial orientation (EO; one of the most broadly acknowledged firm-level constructs) on the performance of small- and medium-sized enterprises (SMEs). Furthermore, we analyze the moderator effect of creating shared value (CSV) on firm performance. Our analysis was conducted using a structural equation model on a stratified sampling method of 294 manufacturing and service SMEs in Korea. The results show that an SME’s efforts in some variables in EO constructs are statistically positively related to both its financial (economic benefits) and non-financial performance (social benefits). Our study results also reveal that there is a significant positive moderator effect of CSV on the EO-performance relationship. This implies that CSV, when bundled with EO, can boost firm performance and provide SMEs with not only a competitive and sustainable advantage but also reduces their risk. This research contributes to the extant literature by investigating the interactive effect of CSV on the relationship between EO and firm performance in the context of SMEs, which has received scant attention in the extant literature. In the last section, the limitations and future research agenda of this study are presented.

Keywords: entrepreneurial orientation; creating shared value; social and economic benefits; firm performance; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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