Browse > Article

The Effect of Small Business Entrepreneur's Psychological Traits on Entrepreneurial Orientation and Performance: Focusing on the Moderating Effect of Government Support Programs  

Lee, Sung In (Business Administration, Keimyung University)
Yi, Ho-Taek (Business Administration, Keimyung University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.17, no.1, 2022 , pp. 139-155 More about this Journal
Abstract
This paper presented a research model to investigate the relationship between the psychological traits of small business entrepreneurs and entrepreneurial orientation and the relationship between entrepreneurial orientation and performance. To verify the research model, a total of 202 entrepreneurs in Daegu were surveyed and the data obtained were used. The collected data were analyzed by SPSS and AMOS. The results of the analysis showed that all of the psychological traits except 'Agreeableness' and 'Extroversion' among the small business entrepreneur's psychological trait had a positive(+) effect on entrepreneurial orientation. In addition, it was confirmed that entrepreneurship orientation had a positive(+) effect on performance, and government policy funding had a moderating effect between entrepreneurship orientation and performance. In conclusion, the causal relationship between the small business entrepreneur's psychological traits and entrepreneurial orientation is examined, and the moderating effect of government support programs is examined to find out what psychological traits of small business entrepreneurs affect the expression of entrepreneurial orientation. In addition, since entrepreneurial orientation affects performance and government policy funds control, it suggests that continuous financial support for small business entrepreneurs is needed.
Keywords
Small Business Entrepreneur; psychological traits; Big 5 Model; Entrepreneurial Orientation; government policy funds;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Wiklund, J.(1999). The Sustainability of the Entrepreneurial Orientation-performance Relationship. Entrepreneurship. Theory and Practice, 24(1), 37-48.   DOI
2 An, S. G., & Jeon, H. J.(2019). The Effects of Individual Characteristics on Entrepreneurial Satisfaction and Performance: Focused on the Five Personality Factors. Proceedings of Conference on Business Venturing, 135-141.
3 Asendorpf, J. B., & Wilpers, S.(1998). Personality effects on social relationships. Journal of personality and social psychology, 74(6), 1531-1544.   DOI
4 Baek, Y. M.(2018). The Effects of Big 5 personality on Entrepreneurship of the College Student: Focusing on the Moderating Effects of Flow and Self-efficacy. Journal of Convergence for Information Technology, 8(3), 137-144.   DOI
5 Bagozzi, R. P., & Yi, Y. J.(1988). On the Evaluation of Structural Equation Models. Journal of Academy of Marketing Science, 16(1), 74-94.   DOI
6 McCrae, R. R., & Costa Jr, P. T.(1987). Validation of the five-factor model of personality across instruments and observers. Journal of Personality and Social Psychology, 52(1), 81-90.   DOI
7 McCrae, R. R., & Costa Jr, P. T.(1997). Personality trait structure as a human universal. America Psychologist, 52(5), 509-516.   DOI
8 McCrae, R. R., & Costa Jr, P. T.(1999). A five-factor theory of personality. In L. A. Pervin & O.P. John(Eds.), Handbook of personality theory and research. New York: Guilford Press.
9 McDougall, P. P., & Oviatt, B. M.(2003). Some fundamental issues in international entrepreneurship. Entrepreneurship Theory & Practice, 18(27), 1-27.
10 Miller, D., & Friesen, P. H.(1982). Innovation in conservative and entrepreneurial firms: two models of strategic momentum. Strategic Management Journal, 3(1), 1-25.   DOI
11 Miller, D.(1983). The correlates of entrepreneurship in three types of firms. Management science, 29(7), 770-791.   DOI
12 Myers, I. B.(1987). Introduction to Type(4th ed.). Palo Alto: CA, Consulting Psychologist Press.
13 Nicholson, N., Soane, E., Fenton-O'Creevy, M., & Willman, P.(2005). Personality and Domain-specific Risk Taking. Journal of Risk Research, 8(2), 157-176.   DOI
14 Norman, W. T.(1963). Toward an adequate taxonomy of personality attributes: Replicated factor structure in peer nomination personality ratings. Journal of Abnormal and Social Psychology, 66, 574-583.   DOI
15 Palmer, M.(1971). The application of psychological testing to entrepreneurial potential. California management review, 13(3), 32-38.   DOI
16 Yi, H. T.(2017). Differential Effect of Salespersons Personality on Selling Orientation-Customer Orientation and Sales Performance: Focused on Pharmaceutic Distribution Channel. Journal of channel and retailing, 22(4), 125-148.   DOI
17 Rhee, J. H., & Yang, H. J.(2011). Relationships Among International Entrepreneurship, Core Competence, and Internationalization. Korean Journal of Business Administration, 24(6), 3247-3271.
18 Chen, S. C., Jing, L. L., & Sung. M.(2012). University students personality traits and entrepreneurial intention: Using entrepreneurship and entrepreneurial attitude as mediating variable. International Journal of Economic Research, 3(3), 76-82.
19 Cho, H. S.(2014). Achievements and Limitations of Korean Legislation on SMEs-with focus on the relation between Promotion Policy and Competition Policy. The Journal of Legal Studies, 22(2), 271-293.
20 Choi, J. Y.(2015). Relationship Analysis among Entrepreneurship, Innovation Capability, External Cooperation, and Technological Innovation Performance for Venture Companies. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 10(5), 219-231.   DOI
21 Roberts, E. B.(1966). How to succeed in a new technology enterprise. Technology Review, 73, 25-35.
22 So, E. Y., & Park, S. W.(2015). The Effect of the Entrepreneurship of Small Business Owners on their Financial Performance. Korean Business Education Review, 30(1), 245-264.
23 Srivastava, S., Angelo, K. M., & Vallereux, S. R.(2008). Extraversion and positive affect: A day reconstruction study of person-environment transactions. Journal of Research in Personality, 42(6), 1613-1618.   DOI
24 Statistics Korea(2020). Preliminary Results of 2019 Census on Establishments. Retrieved(2021.12.30.) from https://www.kostat.go.kr/portal/korea/kor_nw/1/1/index.board?bmode=read&aSeq=387205.
25 Venkatraman, N., & Ramanujam, V.(1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.   DOI
26 Watson, D., Clark, L. A., McIntyre, C. W., & Hamaker, S.(1992). Affect, personality, and social activity. Journal of Personality and Social Psychology, 63(6), 1011-1025.   DOI
27 Yun, S. Y.(2013). A Study on Efficiency Enhancement of Public Financial Supporting Programs for Micro Business. Asia Pacific Journal of Small Business, 35(4), 269-291.
28 Yi, H. T.(2021). A Study on the Development of Support Policy for Small Businesses in City of Daegu. Korean Management Consulting Review, 21(3), 299-309.
29 Yoo, T. Y., & Min, B. M.(2001). Predictability of Big-Five personality model to performance in a variety of settings and its limitation: A meta-analysis. The Korean Journal of Industrial and Organizational Psychology, 14(2), 115-134.
30 Yu, H. K., Kim, M. Y., & Chung, H. K.(2007). Employees' Big 5 Personality, Perceived Organizational Support, and Customer Performance in Food Service Corporations. Korean Journal of Hospitality & Tourism, 16(5), 201-219.
31 Zahra, S. A.(1991). Predictors and financial outcomes of corporate entrepreneurship: An exploratory study. Journal of Business Venturing, 6(4), 259-286.   DOI
32 Yang, D. M., & Yoo, W. J.(2014). Effects of the SCM Flexibility between the Supplier-Buyer on Cooperative Activities and Management Performance. Journal of the Korean Entrepreneurship Society, 9(4), 152-177.
33 Borgatta. E. F.(1964). The structure of personality characteristics. Behavioral Science, 12, 8-17.   DOI
34 Casson, M.(2005). Entrepreneurship and the theory of the firm. Journal of Economic Behavior & Organization, 58(2), 327-348.   DOI
35 Powell, T. C.(1992). Research Notes and Communications Strategic Planning as Competitive Advantage. Strategic Management Journal, 13(7), 551-558.   DOI
36 Costa Jr, P. T., & McCrae, R. R.(1992). Four ways five factors are basic. Personality and individual differences, 13(6), 653-665.   DOI
37 Covin, J. G., & Slevin, D. P.(1986). The development and testing of an organizational-level entrepreneurship scale. Frontiers of entrepreneurship research, 1(3), 628-639.
38 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
39 Digman, J. M.(1990). Personality structure: Emergence of the five-factor model. Annual Review of Psychology, 41, 417-440.   DOI
40 Cho, B. S.(2008). The Present Status and Problems of SME Legal System and its Way of Improving in Korea. The Korean Small Business Review, 30(4), 231-251.
41 Digman, J. M., & Inouye, J.(1986). Further specification of the five robust factors of personality. Journal of Personality and Social Psychology, 50(1), 116-123.   DOI
42 Dollinger, M. J.(1995). Entrepreneurship: strategic and resources. Boston: Irwin, Boston.
43 Finkelstein, S., & Hambrick, D. C.(1990). Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative science quarterly, 484-503.
44 Covin, J. G., & Slevin, D. P.(1991). A conceptual model of entrepreneurship as firm behavior. Entrepreneurship theory and practice, 16(1), 7-25.   DOI
45 Weong, J. H., & Jung, D. H.(2017). The Effect on Entrepreneurial Characteristics of Small Business Management Performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(1), 111-121.   DOI
46 Kim, D. Y., & Yoo, T. Y.(2002). The relationships between the Big Five personality factors and contextual performance in work organizations. The Korean Journal of Industrial and Organizational Psychology, 15(2), 1-24.
47 Kim, S. Y., & Jun, H. W.(2008). Effects of hotel employee's personality on job involvement and Career involvement: Focused on Big 5 personality. Korean Journal of Tourism Research, 23(2), 239-257.
48 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
49 Johnson, J. W.(2003). Toward a Better Understanding of the Relationship between Personality and Individual Job Performance, Personality and Work. Reconsidering the Role of Personality in Organizations, 4, 83-120.
50 Na, S. G.(2016). A Study on the Structural Relationship among Entrepreneurial Characteristics, Success Factors and Performances of Small Business Start-up Founders. Management & Information Systems Review, 35(4), 251-268.
51 Yi, H. T., Han, C. N., & Cha, Y. B.(2018). A Study on the Effects of Industrial Cluster Systematicity on Corporate Capabilities and Firm Performance: Focused on Technology Venture Companies in City of Daegu. Korean Management Consulting Review, 18(3), 135-146.
52 Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L.(2006). Multivariate data analysis (6th ed.), Upper Saddle River. NJ: Pearson University Press.
53 Atuahene-Gima, K., & Ko, A.(2001). An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization science, 12(1), 54-74.   DOI
54 Bank of Korea(2020). Results of a survey on the impact of the spread of COVID-19 on the economy of the Daegu-Gyeongbuk region. Retrieved(2021.12.30.) from http://www.bok.or.kr/portal/bbs/P0000720/view.do?nttId=10057119&menuNo=200570.
55 Yang, J. H.(2017). The Effect of Role Model and Entrepreneurship Education on Entrepreneurial Intention of Korean Juvenile. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(2), 1-11.   DOI
56 OECD(2021). self-employment rate. Retrieved(2021.06.11.) from https://www.oecd-ilibrary.org/employment/self-employment-rate/indicator/english_fb58715e-en.
57 Parker, S. K., Williams, H. M., & Turner, N.(2006). Modeling the Antecedents of Proactive Behavior at Work. Journal of Applied Psychology, 91(3), 636-652.   DOI
58 Fitzgerald, L., Johnston, R., Brignall, S., Silvestro, R., & Voss, C.(1994). Performance Measurement in Service Business, London: Black Bear Press Ltd.
59 Fornell, C., & Larcker, D.(1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.   DOI
60 Goldberg, L. R.(1993). The Structure of Phenotypic Personality Traits. American Psychologists, 48(1), 26-34.   DOI
61 Hwangbo, Y., & Bae, K. S.(2017). Impact of Corporate Entrepreneurship, Human Resource Innovation on the Firms' Innovation Activities and Nonfinancial Performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(4), 1-14.   DOI
62 Hong, K. W.(2003). Study on the impact of Market Orientation Competitive strategy upon management performance in foodservice firms. Doctoral Dissertation, Kyonggi University, Korea.
63 Hong, P. K., & Seo, H. J.(2011). Does Government Support Stimulate Business R&D?. The Journal of Korean Public Policy, 13(2), 85-111.
64 Huh, D. W., & Kim, J. H.(2013). Grow Step by Step Support Services and Its Impact on the Balance Score Card. Korea International Accounting Review, 49(2), 387-404.
65 John, O. P., & Srivastava, S.(1999). The Big-Five trait taxonomy: History, measurement, and theoretical perspectives Handbook of personality. Theory and research, 2, 102-108.
66 Jung, C. G.(1923). Psychological type. New York, NY: Harcourt Brace.
67 Graziano, W. G., Jensen-Campbell L. A., & Hair, E. C.(1996). Perceiving interpersonal conflict and reacting to it: the case for agreeableness. Journal of personality and social psychology, 70(4), 820-835.   DOI
68 Kim, J. Y.(2019). Impact of entrepreneurial orientation on small- and medium-sized enterprises' entrepreneurial performance: the mediating role of entrepreneurial knowledge position. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(2), 83-93.   DOI
69 Kim, B. S.(2012). A Study on the Entrepreneur's Psychological Traits and Entrepreneurship: Focus on the Process Model. The Journal of Eurasian Studies, 9(1), 119-152.   DOI
70 Kim, J. K., Lee, Y. B., Lee, S. W., Jang, K. H., & Lee, M. H.(2008). Effectiveness Analysis of The Government Small Business Loan Program: Comparing the Types of Loan Program Management. Korean Journal of Public Administration, 46(1), 1-32.
71 Lee, J, H., & Lee, W. J.(2019). The Effect of Youth Entrepreneurship Education on Entrepreneurship and Start-up Will. Proceedings of Conference on Business Venturing, 153-159.
72 Kim, Y. M., & Kang, T. G.(2018). A Study on the Effectiveness of Government Support System for Small Business: Focusing on the Analyses and Results in Jeonbuk Region. Journal of the Korea Entrepreneurship Society, 13(3), 1-27.
73 Knight, F. H.(1921). Risk, Uncertainty and Profit. New York: Harper and Row.
74 Kosslyn, S. M., & Rosenberg, R. S.(2011). Introducing Psychology: Brain, Person. Group. London: Pearson Custom Publishing.
75 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
76 Lee, C., Lee, K., & Pennings, J. M.(2001). Internal Capabilities, External Networks, and Performance: A Study of Technology Bases Ventures. Strategic Management Journal, 22(6-7), 615-640.   DOI
77 Lee, G. H., & Yi, H. T.(2019). An Empirical Research on the Effect of Government Start-up Support Programs on Entrepreneurship, Corporate Capabilities and Firm Performance. Korean Management Consulting Review, 19(1), 43-55.
78 Lim, H. J., Kim, J. H., & Park, J. Y.(2020). An Empirical Study on the Effect of Entrepreneur's Psychological Characteristics Upon Business Performance: Focusing on the Moderating Effect of Social Support. The Journal of Eurasian Studies, 17(3), 63-102.   DOI
79 Lee, C. W., Han, Y. J., Kim, D. H., Seo, Y. M., Lee, K. W., Lee, H. W., & Lee, Y. D.(2014). Understanding of Entrepreneurship. Seoul: Korea Entrepreneurship Foundation.
80 Lumpkin, G. T., & Dess, G. G.(2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of business venturing, 16(5), 429-451.   DOI
81 Lee, S. S.(2016). A Study on Entrepreneurship, Competitiveness of SWOT, and Performance in Hidden Champion Firm. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(2), 21-33.   DOI
82 Brockhaus, R. H.(1980). Risk Taking Propensity of Entrepreneurs. Academy of Management Journal, 23(3), 509-520.   DOI
83 Covin, J. G., & Slevin, D. P.(1990). New Venture Strategic Posture, Structure and Performance: An Industry Life Cycle Analysis. Journal of Business Venturing, 5(2), 123-135.   DOI
84 Fiske, D. W.(1949). Consistency of the factorial structures of personality ratings from different sources. Journal of Abnormal and Social Psychology, 44(3), 329-344.   DOI
85 Koo, M. S.(2020.12.10). The limit on emergency loans for small businesses was exhausted in 5 hours. The Maeil Shinmun, Retrieved from http://news.imaeil.com/page/view/2020121008143739206.
86 Salgado, J. F.(2002). The Big Five personality dimensions and counterproductive behaviors. International journal of selection and assessment, 10(1-2), 117-125.   DOI
87 Choi, J. Y., & Jeong, H. J.(2008). A Study On Effect Of Management Education To Entrepreneurship Improvement. Journal of Human Resource Management Research, 15(3), 213-230.
88 Chung, D. Y., Im, J. H., & Chae, Y. H.(2017). The Structural Relationship among Personality Traits, Employability and Entrepreneurship of the College Student, and Moderating Effect of Gender. Korean Business Education Review, 32(3), 249-269.   DOI
89 Cooper, A., Gascon, J., & Woo, C.(1991). A resource-based prediction of new venture survival and growth. Proceedings of Academy of Management, 113-119.
90 Rauch, A., & Frese, M.(2007). Let's put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners' personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), 353-385.   DOI
91 Jung, G. S., & Seol, B. M.(2016). A study on the Effects of Small Business Managerial Performance with Small Business Support Systems in Gyeongnam. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(2), 221-232.   DOI
92 Jung, C. H., & Jung, D. H.(2014). The Effects of Strategic Orientations on Company Performance and the Moderating Role of Entrepreneurship in Small Medium Sized and Ventures Manufacturing Firms. Journal of the Korea Contents Association, 14(7), 468-479.   DOI
93 Jung, D. H., & Lee, E. R.(2019). The Influence of Small Merchants' Psychological Traits on BSC Performance: Mediating effects of Social Capital. Journal of Business Research, 34(3), 201-234.   DOI
94 Jung, E. A., Jung, Y. T., & Park, J. S.(2020). The Search for Survival and leap-seeking: The Direction of SME after COVID-19(KOSBI SME Focus 20-09). Seoul: Korea small Business Institute.
95 Kim, S. T., Min, K. M., & Oh, S. Y.(2012). A Study on the Governmental Policy' Loan of Small Business. Journal of the Korea Academia-Industrial Cooperation Society, 13(4), 1594-1602.   DOI
96 Kim, K. W., & Kim, M. S.(2017). An Empirical Analysis of Influence of Corporate Entrepreneurship on Business Performance from the Viewpoint of SMEs Growth. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(5), 13-28.   DOI