The Study On The Relationship Among Corporate Culture, Entrepreneurial Orientation And Firm Performance

Along with the deepening of reform and opening up, China's entrepreneurial activities are to flourish. As the core concept of entrepreneurship research, entrepreneurial orientation and its relationship with business performance has become the mainstream of entrepreneurship management research. Entrepreneurial orientation is behavior strength which demonstrated of risk-taking, proactiveness and Innovativeness by new ventures. And is the specific characterization of the start-ups to solve problems and respond to environmental changes in the business practice. However, the existing literature for the entrepreneurial orientation research has yet to be deepened. There still remain some potential theoretical vacancies for the topics such as the composition of the entrepreneurial orientation dimensions, their variability, the transformation of entrepreneurial orientation and performance relationship, its pre-effects, as well as a variety of contexts on the relationship between the two detailed analyses of both the theory.Based on the cutting-edge issues under the Process perspective of entrepreneurship research, this paper examines relationship among corporate culture, entrepreneurial orientation and business performance, and their interaction mechanisms. Based on literature analysis, case interviews and the theory extrapolating, we build out a theoretical model which studies corporate culture, entrepreneurial orientation and its matching mechanisms to affect the business performance, and developed corresponding 17 research hypothesis. Relying on 251 valid questionnaires which respond by the domestic enterprises, we using factor analysis, path analysis and structural equation model to test these relevant empirical hypotheses. The major findings of this study and conclusions are the following:First, the path analysis found that the Innovativeness and proactiveness can significantly improve business performance, which means that for domestic enterprises in terms of business practice, pay attention to the importance of innovation and taking the leader. Enterprises can remain innovativeness by strengthening research and development activities, the pursuit of leading technologies and services to accelerate product innovation, constantly introduce new products and new services, they cam also by creating in-house to encourage innovation, encourage competition, and raise an atmosphere of taking the lead and the establishment of the corresponding system to nurture the proactiveness.Second, the empirical results show that the enterprise culture can strengthen entrepreneurial orientation, which partially responded to Rauch, Wiklund, Lumpkin, and Frese (2009) to introduce the antecedent variables for the relationship between entrepreneurial orientation and business performance. Path analysis results showed that adaptability, mission and consistency of corporate culture are conducive to enhance corporate entrepreneurial orientation strength, which means for context in the China's venture practice, entrepreneurs and business managers should attach great importance to the building of enterprise culture, encouragement and nurturing the cultural characteristics of adaptability, consistency and mission dimensions.Third, by use of exploratory and confirmatory factor analysis, the paper remodels Denison's OCQ cultural characteristics in the China' situations, the amended model includes four dimensions of participation, consistency, mission and adaptability, and related 16 measuring items, the Reliability coefficients are 0.891,0.836,0.870 and 0.756 respectively, showing good quality.Fourth, the relationship among different entrepreneurial orientation dimensions has been the forefront of the current study, although quite a number of literature, but still lack in-depth analysis of the role of the relationship between these dimensions. To my knowledge, this is the first systematic study of the interaction mechanisms between innovativeness, proactiveness and risk-taking nature, empirical results show that the proactiveness dimension has a significant role in promoting risk-taking behavior, and risk-taking is also has a positive-driven effects for the innovativeness, these results truly have a gig contributation for the entrepreneurial orientation theory development.Finally, we also found the meditation function of entrepreneurship orientation in the relationship between firm culture and firm performance, which not only can help us better understand the transformative path between corporate cultures and firm performance, but also can deppen our comprehension about theoretical and empirical development of entrepreneurship orientation theory.The contributions of this paper are mainly reflected in the following three areas:First, this article explore the intrinsic relationship of three sub-dimensions of entrepreneurial orientation dimensions with firm performance, empirical results show that the proactiveness's influence to dynamic performance is far greater than the contribution of innovativeness and risk-taking (the path Correlation are 0.219,0.166 and 0.078, respectively), which means that in order to maximize business performance, the venture strategy for the optimal allocation of resources should follow the proactiveness-Innovation-risk-taking logic sequence, not only laid the foundation for more detailed and accurate understanding of the different dimensions of entrepreneurial orientation and performance variables, but also contribute on the resource allocation theory of strategic management research.Second, this study makes an expansion of entrepreneurial orientation-business performance relational model; through the introduction of a corporate culture construct-antecedent variables of entrepreneurial orientation research can reveal the formation of business-oriented front-end driver, which companies of great significance to improve start-ups business-oriented behavior. The empirical results show that to building a cultural characteristics of mission, consistency and adaptability can significantly promote entrepreneurial orientation, which contribute to the how to effectively manage the ventures practices.Third, focus on the current gap between business practice and entrepreneurship research, by conduct integrated research to align enterprise culture and entrepreneurial orientation on organizational performance will contribute on how to effectively promote the venture' business performance.The structure of the study is showed follows. Chapter one makes a review about this research's foundation and key issues, and introduces the study contents and research methodologies et al. Chapter two is the part of literature review and showed the theoretical contexts and foundations of the study. On this basis, we make a deeply literature review for the corporate culture theory and entrepreneurial orientation theory, respectively, We first discussed the corporate culture theory' conceptual framework, analysis models, measurement of dimensions and its empirical applications, followed by the discussion of entrepreneurial management research, its research contributions, research framework, evolutionary stage and research perspectives, we also discuss the analysis levels of entrepreneurship research, its time framework and research methods sections were reviewed, too. Finally, we discuss of the entrepreneurial orientation theoretical point, measuring dimensions and empirical applications. In the third chapter, based on literature analysis, case studies and theoretical deductions, we described mutual relations of corporate culture, entrepreneurial orientation and business performance and develop the corresponding theoretical framework and research hypothesis. Chapter four and five are the research design and empirical results of our studies. We explained how to construct survey questionnaires, how to select research samples, and data collection procedures. In these two chapters, we reported descriptive statistics, the outcome of factor analysis, scale reliability and validity, as well as the results of path analysis. Finally, we explained the results of hypothesis testing. Chapter six summarizes previous study conclusions and explores the study's contributions in theoretical and practical levels. Finally, we conclude with a discussion of the limitations of this study, and directions for future research.