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A Study on the Entrepreneurial Orientation and the Performance of Startups: The Mediating Effects of Technological Orientation and Social Capital  

Lee, Eun A (School of Business Administration, Kyungpook National University)
Seo, Joung Hae (School of Business Administration, Kyungpook National University)
Shim, Yun Soo (School of Business Administration, Kyungpook National University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.14, no.2, 2019 , pp. 47-59 More about this Journal
Abstract
Various studies have been carried out on the subject of entrepreneurship, which is required to create new businesses and organizations during the early process of startups based on innovative technologies and ideas. At the same time, the concept of organizational entrepreneurial orientation, which explains how to manage enterprises in the process of pioneering new products and markets, is drawing more and more attention for the purpose of continuously creating and maintaining a competitive edge of startups. This study focused on the relationship between entrepreneurial orientation and startup performance and the role of technological orientation and social capital. An empirical research was conducted on 144 different startup companies residing in startup supporting institutions. To evaluate the suitability of the research model, a PLS-based structural equation model was used. The research results are as follows: First, the entrepreneurial orientation of startups was found to have a positive effect on startup performance. Second, it was shown that entrepreneurial orientation had a positive effect on all three dimensions of social capital and technological orientation. Third, it has been shown that technological orientation and the cognitive dimension of social capital mediates the relationship between entrepreneurial orientation and startup performance. Through this, it was confirmed that entrepreneurial orientation directly affects startup performance, and it even influences the growth of startups by increasing technological superiority and social capital which is inherent in the network. Also, the research identified the need for additional research on the relationship between the strengthening of technological orientation and strategical orientation in startups. This study is expected to expand the discussion about social capital in the field of startup related research by affirming the role and importance of the cognitive system embedded in the network as well as the connectivity of networks, which has been already emphasized in previous startup related studies. Finally, the results of this study were reflected to present new practical implications.
Keywords
entrepreneurial orientation; technological orientation; social capital; strategic orientation; startup; PLS-SEM;
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Times Cited By KSCI : 7  (Citation Analysis)
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