Browse > Article

The Effect of Adversity Quotient of Small business CEOs on Customer Orientation: Mediating Effect of Entrepreneurial Orientation  

Ku, Woongmo (Dept. of Technology Entrepreneurship, Graduate school in Dongguk University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.15, no.3, 2020 , pp. 103-119 More about this Journal
Abstract
This study aimed to derive theoretical and practical implications by analyzing the relationship between adversity quotient, entrepreneurial orientation, and customer orientation, which are the internal competency of start-up entrepreneurs affecting the performance of a small business CEO. As in previous domestic studies, we deviated from analyzing internal competency as a single-dimensional functional relationship to business performance, and attempted to explain the relationship between the internal competences of start-up entrepreneurs. Empirical analysis was conducted by setting the adversity quotient as an independent variable, the entrepreneurial orientation as a parameter, and the customer orientation as a dependent variable. As a result of the analysis, first, it was found that control and ownership, which are sub-elements of adversity quotient, have a positive effect on entrepreneurial orientation and customer orientation. Second, entrepreneurial orientation was found to have a positive effect on customer orientation. Third, it was found that only the ownership of the adversity quotient had a positive effect on customer orientation through the mediating effect of entrepreneurial orientation. In other words, it was found that the entrepreneur's ownership influences customer orientation through entrepreneurial orientation. On the other hand, endurance, sub-element of adversity quotient, was found to have no significant effect on entrepreneurial orientation and customer orientation. This means that in the rapidly changing New Normal era, endurance of entrepreneur can no longer have a large impact on entrepreneurial orientation and customer orientation. This study gives implications for the entrepreneur's competencies that must be developed first and the tendency to be developed together. Furthermore, it can be helpful in policy designing start-up support programs and guidelines for investors' investment standards.
Keywords
New Normal; Adversity Quotient; Entrepreneurial Orientation; Customer Orientation; Small business;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
연도 인용수 순위
1 Hambrick, D. C.(2007). Upper echelons theory: An update. Academy of Management Review, 32(2)
2 Harriot, L.(2007). Adversity and Positive Adaptation of Adolescents: The Role of Resilience. Doctoral dissertation, Graduate School of Education Hanyang University.
3 Hoffman, R. C., & Preble, J. F.(1991). Franchising: Selecting a strategy for rapid growth. Long Range Planning, 24(4), 74-85.   DOI
4 Hughes, M., & Morgan, R. E.(2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651-661.   DOI
5 Hult, G. T. M., Hurley, R. F., & Knight, G. A.(2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429-438.   DOI
6 Jang, S. H.(2014). The Effects of Entrepreneurial Orientation, Market Orientation, and Corporate Social Responsibility on Performance in Social Enterprise. Journal of The Korea Contents Association, 14(6), 355-366.   DOI
7 Janney, J. J., & Dess, G. G.(2006). The risk concept for entrepreneurs reconsidered: New challenges to the conventional wisdom. Journal of Business Venturing, 21(3), 385-400.   DOI
8 Jayaram, J., & Xu, K.(2016). Determinants of quality and efficiency performance in service operations. International Journal of Operations & Production Management.
9 Seo, C. J., & Lee, B. R.(2012). The Study of Factors Affecting to MOT Employees on Service Industry to Handle Service Manual. The Korea Service Management Society, 139-162.
10 Shin, K. S., & Yang, D. W.(2007). The Empirical Study on Relationship between Entrepreneurship, Service Orientation and Ventures Success in Restaurant Business. Korean Jouranl of Business Administration, 2639-2666.
11 Buli, B. M.(2017). Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry: Evidence from ethiopian enterprises. Management Research Review, 40(3), 292-309.   DOI
12 Baron, R. M., & Kenny, D. A.(1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.   DOI
13 Bonanno, G. A.(2004). Loss, trauma, and human resilience: Have we underestimated the human capacity to thrive after extremely aversive events? American Psychologist, 59(1), 20-28.   DOI
14 Brady, M. K., & Cronin Jr, J. J.(2001). Customer orientation: Effects on customer service perceptions and outcome behaviors. Journal of service Research, 3(3), 241-251.   DOI
15 Chae, H. O.(2014). Effects of Internal Marketing, Job Satisfaction and Organizational Commitment of Beauty Salon Employees on Customer Orientation. Doctoral dissertation, Graduate School of Beauty Science KwangjuWomen' University.
16 Chang, D. S., & Lim, S. B.(2005). A Study on the Relationships between EO(Entrepreneurial Orientation) and the Success of Venture Creation. Korean Jouranl of Business Administration, 50, 1121-1143.
17 Cho, Y. S., & Won, D. H.(2010). The Influence of Entrepreneurship and Market Orientation on Export Performance-Including the Mediation Effect of Market Orientation. Korea trade review, 35(1), 131-154.
18 Sooan, K(2014). Resilience in professional baseball players: Bouncing back from adversity and Growth. Doctoral dissertation, Graduate School of Psychology Seoul National University.
19 Slater, S. F., & Narver, J. C.(1995). Market Orientation and the Learning Organization. The Journal of Marketing, 63-74.
20 Song, K. S.(2013). The Effects of Business Startup Attributes on Customer Orientation and Business Startup Performance in the Food service Industry. Journal of The Korea Contents Association, 13(6), 481-495.   DOI
21 Stevenson, H. H., & Jarillo, J. C.(2007). A paradigm of entrepreneurship: Entrepreneurial management. Entrepreneurship(pp. 155-170). Springer, Berlin, Heidelberg.
22 Stoltz, P. G.(1997). Adversity Quotient: Turning obstacles into opportunities. John Wiley & Sons.
23 Stoltz, P. G.(2010). Adversity Quotient Work: Finding Your Hidden Capacity For Getting Things Done. Harper Collins.
24 Sun, J., Buys, N., Wang, X. C., & Stewart, D.(2011). Entrepreneurs' resilience and its relationship with entrepreneurial type: A study of national chinese entrepreneurs sample. 8th AGSE International Entrepreneurship Research Exchange Conference. Swinburne University of Technology, Melbourne Australia, 1, 815-827.
25 Sutcliffe, K. M., & Vogus, T. J.(2003). Organizing for resilience. Positive Organizational Scholarship, 94-110.
26 Nemeth, C., O'Connor, M., Klock, P. A., & Cook, R.(2006). Discovering healthcare cognition: The use of cognitive artifacts to reveal cognitive work. Organization Studies, 27(7), 1011-1035.   DOI
27 Choi, J. E.(2015). The effect of Airliner's ground crew's Positive Psychological Capital on the Customer-Orientation. Mater's thesis, Graduate School of International Tourism Hanyang University.
28 Chun, S. S.(2007). The relationship of weight lifters's adversity quotient, stress, and stress coping. Mater's thesis, The Graduate School of Sports Science, Yong-in University.
29 Morris, P. A.(1987). Inclusion‐bearing nepheline Hawaiite from near Woolomin, northeastern new south wales. Australian Journal of Earth Sciences, 34(1), 111-118.   DOI
30 Nam, W. J., Kim, H. Y., & Lee, C. S.(2008). The Mediating Effect of Fit on the relationship of Customer orientation and Business performance of Hotel Corporations. Accounting Information Review, 26(2), 301-321.
31 Newman, R.(2005). APA's resilience initiative. Professional Psychology: Research and Practice, 36(3), 227-229.   DOI
32 Noh, K. S., & Kang, H. J.(2012). A Study on the Present Conditions of Promotion Policy and Alternatives to Revitalize the Youth Start-up. The Society of Digital Policy & Management, 10(9), 79-87.
33 Park, C. W.(2016). A Study on the Effect of Entrepreneurship and Self-Efficacy on Knowledge Management : Focusing on Female CEO. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(6), 11-26.   DOI
34 Park, D. M.(2012). A study to understand service directivity and customer orientation to influence entrepreneur performances of the franchisees. Mater's thesis, Graduate School of Industrial & Entrepreneurial Management Chung-Ang University.
35 Park, J. R.(2009). Relationship of Adolescents' Resilience with the Perception of Adversity and Protective Factors. Graduate School of Child and Youth Welfare management Hanseo University.
36 Park, S. Y.(2000). The Effects of Job Satisfaction and Organizational Service Orientation on the Employee Service Orientation. Asia Marketing Journal, 2(1), 99-117.
37 Kim, M. S.(2017). The Effects of Entrepreneurial Firms' Job Design on Entrepreneurial Orientation: The Role of Passion, Formalization, and Goal Congruence. Doctoral dissertation, Graduate School of Industrial & Entrepreneurial Management Chung-Ang University.
38 Jung, K. S.(2017). The Relation between Adversity Quotient and Stress in University Student. Korean Journal of Youth Studies, 24(6), 231-251.   DOI
39 Kim, J. H.(2016). The Effect of Adversity Quotient of Aesthetician on Service Attitude and Customer-Orientation. Mater's thesis, The Graduate School of Welfare and Industry, Tongmyong University.
40 Kim, J. H., & Yang, D. W.(2018). The Effects of Customer Orientation, Customer Relationship Management, and Store Management Activities on Start-Up Performances of Small Korean Restaurants. Journal of the Korean Entrepreneurship Society, 13(2), 173-196.   DOI
41 Kim, W. Y., Kim, H, G., & Hwangbo Y.(2018). Impact Factors of Entrepreneurial Alertness. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 13(1), 1-10.   DOI
42 Kirzner, I. M.(1979). Perception, opportunity, and profit: Studies in the theory of entrepreneurship. Chicago: University of chicago press.
43 Kohli, A. K., & Jaworski, B. J.(1990). Market orientation: The construct, research propositions, and managerial implications. The Journal of Marketing, 54, 1-18.   DOI
44 Daryani, M. A., & Abdollahi, M.(2016). Relationship of entrepreneurial orientation and company performance: Role of differentiation strategy and innovativeness performance. International Journal of Advanced Biotechnology and Research, 7, 1209-1225.
45 Kreiser, P. M., Marino, L. D., Kuratko, D. F., & Weaver, K. M.(2013). Disaggregating entrepreneurial orientation: The non-linear impact of innovativeness, proactiveness and risk-taking on SME performance. Small Business Economics, 40(2), 273-291.   DOI
46 Kwangsup, L.(2013). Athletes' Building Process of Resilience by Overcoming Adversit., Mater's thesis, The Graduate School of Physical Education, Korea National Sport University.
47 Cooper, N., Estes, C., & Allen, L.(2004). Bouncing back. Parks & Recreation, (Ashburn), 39(4), 28-35.
48 Covin, J. G., & Slevin, D. P.(1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87.   DOI
49 Covin, J. G., & Slevin, D. P.(1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship: Critical Perspectives on Business and Management, 3, 5-28.
50 Davis, J. L., Greg Bell, R., Tyge Payne, G., & Kreiser, P. M.(2010). Entrepreneurial orientation and firm performance: The moderating role of managerial power. American Journal of Business, 25(2), 41-54.   DOI
51 Day, G. S., & Wensley, R.(1988). Assessing advantage: A framework for diagnosing competitive superiority. The Journal of Marketing, 52, 1-20.   DOI
52 De Clercq, D., Dimov, D., & Thongpapanl, N. T.(2010). The moderating impact of internal social exchange processes on the entrepreneurial orientation-performance relationship. Journal of Business Venturing, 25(1), 87-103.   DOI
53 De Oliveira Junior, A. B. D., Borini, F. M., Bernardes, R. C., & Oliveira, M. J. D. (2016). Impact of entrepreneurial orientation on strategic alliances and the role of top management. Revista de Administracao de Empresas, 56(3), 315-329.   DOI
54 Donavan, D. T., Brown, T. J., & Mowen, J. C.(2004). Internal benefits of service-worker customer orientation: Job satisfaction, commitment, and organizational citizenship behaviors. Journal of marketing, 68(1), 128-146.   DOI
55 Wang, T., Thornhill, S., & De Castro, J. O.(2017). Entrepreneurial orientation, legitimation, and new venture performance. Strategic Entrepreneurship Journal, 11, 373-392.   DOI
56 Swan, J. E., Trawick, I. F., & Silva, D. W.(1985). How industrial salespeople gain customer trust. Industrial Marketing Management, 14(3), 203-211.   DOI
57 Tang, J., Kacmar, K. M. M., & Busenitz, L.(2012). Entrepreneurial alertness in the pursuit of new opportunities. Journal of Business Venturing, 27(1), 77-94.   DOI
58 Wambugu, A. W., Gichira, R., Wanjau, K. N., & Mung’atu, J. (2015). The relationship between pro-activeness and performance of small and medium agro processing enterprises in Kenya. International Journal of Economics, Commerce and Management, 3(12), 58-72.
59 Wiklund, J., & Shepherd, D. A.(2011). Where to from here? EO-as-experimentation, failure, and distribution of outcomes. Entrepreneurship Theory and Practice, 35(5), 925-946.   DOI
60 Williams, M. R.(1992). Organizational Culture as a Predictor of the Level of Salespersons Customer Oriented Behavior. Doctoral dissertation, Oklahoma State University.
61 Phoolka, E. S., & Kaur, N.(2012). Adversity quotient: A new paradigm to explore. Contemporary Business Studies, 3(4), 67-78.
62 Park, S. Y., & Han, J. H.(2005). The Effects of Organizational Service-Orientation and Employees' Customer Orientation on Business Performance. Journal of New Industry and Business, 26, 101-121.
63 Park, Y. H.(2017). Vision and Strategy of Start-up Powe. community liberalism, Advanced policy series, Seoul: Hansun Foundation
64 Phokha, A., & Nonsrimuang, N.(2013). The effects of entrepreneurial orientation, learning orientation, market driving approach and strategic market planning capability on firm performance. Journal of International Business & Economics, 13(3), 187-204.   DOI
65 Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M.(2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), 761-787.   DOI
66 Reardon, K. K., & Enis, B.(1990). Communication forum: Establishing a companywide customer orientation through persuasive internal marketing. Management Communication Quarterly, 3(3), 376-387.   DOI
67 이광섭(2013). 운동선수의 역경극복을 통한 회복탄력성 형성과정. 석사학위논문, 한국체육대학교.
68 Zahra, S. A., & Covin, J. G.(1995). Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), 43-58.   DOI
69 Zahra, S. A., & Neubaum, D. O.(1998). Environmental adversity and the entrepreneurial activities of new ventures. Journal of Developmental Entrepreneurship, 3(2), 123-140.
70 Zautra, A. J., Hall, J. S., & Murray, K. E.(2010). A new definition of health for people and communities. Handbook of adult resilience, 1-59.
71 이해리(2007). 청소년의 역경과 긍정적 적응. 박사학위논문, 한양대학교.
72 Lee, O. H., & Lee, J. Y.(2015). Testing of the Post-traumatic Growth and Adaptation Model: Mid-life Adults. The Korean Journal of the Human Development, 22, 111-133.   DOI
73 Ajiwibawani, M. P., & Subroto, W. T.(2017). The Effect of Achievement Motivation, Adversity Quotient, and Entrepreneurship Experience on Students Entrepreneurship Attitude. International Journal of Academic Research in Business and Social Sciences, 7(9), 441-450.
74 An, J. Y., & Kim, H. J.(2015). The Effect of Organizational Adaptation of Workers' Adversity Quotation. Journal of The Korea Contents Association, 15(9), 295-306.   DOI
75 Lee, H. S., Kim, Y., & Lee, Y. K.(1998). Market Orientation and Business Performance: Mediating Roles of Employees Satisfaction, Customer Satisfaction and Corporate Image. Korean Management Review, 27(1), 157-184.
76 Lee, J. K., Kim, H. C., & Ahn, T. H.(2014). Self-Efficacy and Firm Performance: The Role of Entrepreneurial Orientation and Entrepreneurial Experience. Korean Academic Society Of Business Administration, 43(2), 561-586.
77 Lee, J. W.(2015). The Effect of Perceived Social Support of Casino Employees on Customer Orientation. Mater's thesis, Graduate School of Tourism & Hospitality Kyonggi University.
78 Schumpeter, J. A.(1982). The Theory of Economic Development. Transaction Publishers.
79 Rodrigo-Alarcon, J., Garcia-Villaverde, P. M., Parra-Requena, G., & Ruiz-Ortega, M. J. (2017). Innovativeness in the context of technological and market dynamism: The conflicting effects of network density. Journal of Organizational Change Management, 30(4), 548-568.   DOI
80 Saxe, R., & Weitz, B. A.(1982). The SOCO scale: A measure of the customer orientation of salespeople. Journal of Marketing Research, 19, 343-351.   DOI
81 Seligman, M. E., & Csikszentmihalyi, M.(2014). Positive psychology: An introduction. Flow and the foundations of positive psychology 279-298 Springer.
82 Aragon-Sanchez, A., & Sanchez-Marin, G.(2005). Strategic orientation, management characteristics, and performance: A study of spanish SMEs. Journal of Small Business Management, 43(3), 287-308.   DOI
83 An, J. Y., Woo, H. Y., Song, J. H., & Kim, H. J.(2014). Validity and Reliability of Adversity Quotient Profile for Measuring Overcoming of Adversity among Nurses in Korea. Journal of the Korea Academia-Industrial cooperation Society, 15(4), 2285-2294.   DOI
84 An, S. H.(2015). Study on the effect that servant leadership has on self-efficacy and customer-orientation. Mater's thesis, The Graduate School of business management, Korea University.
85 Anderson, B. S., Covin, J. G., & Slevin, D. P.(2009). Understanding the relationship between entrepreneurial orientation and strategic learning capability: An empirical investigation. Strategic Entrepreneurship Journal, 3(3), 218-240.   DOI
86 Arshad, A. S., Rasli, A., Arshad, A. A., & Zain, Z. M.(2014). The impact of entrepreneurial orientation on business performance: A study of technology-based SMEs in malaysia. Procedia-Social and Behavioral Sciences, 130, 46-53.   DOI
87 Ayala, J., & Manzano, G.(2014). The resilience of the entrepreneur. influence on the success of the business. A longitudinal analysis. Journal of Economic Psychology, 42, 126-135.   DOI
88 Baird, I. S., & Thomas, H.(1985). Toward a contingency model of strategic risk taking. Academy of Management Review, 10(2), 230-243.   DOI
89 Levitt, T.(1980). Marketing success through differentiation-of anything(pp. 83-91). Graduate School of Business Administration, Harvard University.
90 Lee, Y. J.(2010). The Effects of Employees' Job Satisfaction and Customer Orientationon Customers' Service Quality Perception and Satisfaction. Doctoral dissertation, Graduate School of Management Dongyan University.
91 Lumpkin, G. T., & Dess, G. G.(1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172.   DOI
92 Mangundjaya, W. H.(2009). The relationship of resilience and entrepreneurial intentions. Proceedings of International Entrepreneurship Congress 2009: "SMEs and Entrepreneurship" OCTOBER, 14-15-16, 2009, 199-204.
93 Markman, G. D., & Baron, R. A.(2003). Person-entrepreneurship fit: Why some people are more successful as entrepreneurs than others. Human Resource Management Review, 13(2), 281-301.   DOI
94 Miller, D.(1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.   DOI
95 Goleman, D.(2006). Emotional intelligence Bantam.
96 Firmansyah, A. H., Djatmika, E. T., & Hermawan, A.(2016). The effect of adversity quotient and entrepreneurial self-efficacy on entrepreneurial intention through entrepreneurial attitude. Journal of Business and Management, 18(5), 45-5.
97 Fornell, C.(1992). A national customer satisfaction barometer: The swedish experience. The Journal of Marketing, 6-21.