The Effect Of Entrepreneurial Orientation On Tech-based Firm Performance

In the ambit of the recent policy landscape,the promulgation of initiatives like "Mass Entrepreneurship and Mass Innovation" along with the "Innovation-Driven Development Strategy" has catalyzed a paradigmatic shift towards fostering a culture imbued with innovation and entrepreneurship.This shift has been pivotal in propelling the industrial sector towards a trajectory of transformation and modernization.Central to this narrative is the ascendant role of technology-based firms,which have solidified their position as the cornerstone of socio-economic advancement.Their engagement in the operationalization of these policies has been instrumental in driving forward the agenda of technological innovation and the reconfiguration of business models.Nonetheless,the trajectory of these enterprises is significantly modulated by the volatility of the external milieu,characterized by rapid technological evolution,market instability,and the fluidity of policy landscapes.Such environmental dynamism has led to a heterogeneity in the outcomes associated with the adoption of entrepreneurial orientation by technology-based firms,engendering a spectrum of effectiveness in leveraging these orientations for competitive stratification.The divergent performance metrics underscore the imperative for a nuanced exploration into the mechanistic underpinnings and strategic pathways that enable technology-based firms to architect and sustain competitive advantages,thereby enhancing their firm performance.This scholarly inquiry,centered on elucidating the confluence of entrepreneurial orientation and competitive dynamics within technology-based firms,holds profound implications for the strategic elucidation and operational optimization of such entities.By dissecting the intrinsic and extrinsic factors that sculpt the competitive landscape,this investigation endeavors to furnish actionable insights that could galvanize the health and vitality of technology-based firms.In the realm of strategic management,the concept of entrepreneurial orientation stands as a focal point,heralded for its critical role in fostering continuous innovation and enabling firms to adeptly navigate external fluctuations.This orientation is championed as a pivotal strategy through which enterprises can secure competitive advantages.Despite its celebrated status,scholarly discourse reveals a palpable inconsistency in empirical findings regarding its impact on firm performance.Furthermore,the discourse surrounding technology-based firms—a sector of special interest due to its rapid evolution and inherent dynamism—remains notably underexplored,lacking in depth and systematic analysis.The queries that arise in this context—whether and how entrepreneurial orientation influences the performance of technology-based firms,and the strategies that such enterprises can employ to enhance their firm performance—are yet to receive comprehensive scholarly attention.This gap in the literature signals a critical need for nuanced inquiry.Responding to this scholarly lacuna,the present study seeks to bridge these gaps by invoking an integrative theoretical framework that synthesizes strategic choice theory,organizational learning theory,and innovative behavior theory.Anchored in the "strategy-learning-innovation-performance" research paradigm and the "organization-environment" congruence framework,this research employs a multifaceted methodological approach,encompassing exploratory case studies,empirical research,and configuration analyses.The objective is to delineate the mechanisms and pathways through which entrepreneurial orientation impacts the performance of technology-based firms,leading to several insightful findings and conclusions.Firstly,this study conducts a longitudinal case analysis of CH Group over the period 2005 to 2020 to delve into the evolutionary trajectory of entrepreneurial orientation and its consequential impact on the performance of science and technology enterprises.The findings indicate a pivotal shift in CH Group’s entrepreneurial orientation,transitioning from an initial emphasis on capital mergers and acquisitions(M&A)and strategic joint ventures to a focus on internal incubation and platform empowerment,eventually achieving a synergistic integration of both approaches.This evolution underscores the role of entrepreneurial orientation in bolstering corporate performance and carving out core competitive advantages.Specifically,the mechanism through which entrepreneurial orientation enhances market competitiveness and profitability involves stimulating organizational learning and fostering business model innovation.CH Group has notably advanced its market position and financial outcomes by leveraging exploratory learning,exploitative learning,and business model innovation.Moreover,the dynamic nature of the technological environment necessitates and promotes a deeper engagement with organizational learning and business model innovation among technologically oriented enterprises.The pathway through which entrepreneurial orientation impacts the performance of technology firms is characterized by the implementation of nuanced,stage-specific strategies that facilitate a robust interaction between organizational behavior and external environmental dynamics,effectively aligning the enterprise’s internal capacities for innovation and learning with the ever-evolving market and technological landscapes.Consequently,this strategic alignment has led to significant enhancements in the overall performance of science and technology enterprises.Secondly,in an empirical investigation utilizing a dataset comprising 291 samples from technology-based firms,analyzed through Partial Least Squares Structural Equation Modeling(PLS-SEM),the study explores the nuanced dynamics of entrepreneurial orientation’s impact on technological firm performance.The findings indicate that the direct influence of entrepreneurial orientation on the performance metrics of technology-based firms is statistically nonsignificant.Concurrently,the study delves into the roles of different learning paradigms and their interplay with entrepreneurial orientation.Specifically,exploitative learning,while significant in the conceptual framework,does not exhibit a significant mediating effect in the entrepreneurial orientation-performance nexus.In contrast,exploratory learning demonstrates a partial mediating role,suggesting that the engagement in novel knowledge acquisition and application can bridge the gap between entrepreneurial orientation and enhanced tech-based firm performance.Furthermore,business model innovation emerges as a potent mediator,affirmatively impacting the relationship between entrepreneurial orientation and tech-based firm performance.The investigation also reveals the presence of sequential mediating effects—wherein exploratory learning and business model innovation,as well as exploitative learning and business model innovation,collectively mediate the relationship between entrepreneurial orientation and the performance outcomes of technology-based firms.This layered mediation underscores the complex interdependencies of learning,innovation,and strategic orientation.Additionally,the study identifies a positive moderating effect of environmental dynamism on the linkages between entrepreneurial orientation and both forms of learning-exploratory and exploitative-as well as business model innovation.This moderating role highlights how fluctuating market and technological environments can amplify the benefits derived from entrepreneurial orientation through the facilitation of learning and innovation practices.Lastly,we applied fuzzy-set Qualitative Comparative Analysis(fs QCA)within the’environment-organization’ matching framework to delineate the configuration paths that entrepreneurial orientation,ambidextrous learning,business model innovation,and environmental dynamism play in shaping tech-based firm performance.The analysis revealed three distinct configuration paths conducive to high-level firm performance:Ambidextrous Learning Synergy(S1): This path is characterized by a synergy of high-level entrepreneurial orientation with intensive exploratory and exploitative learning,coupled with dynamic environmental conditions.Exploitative Learning-Business Model Innovation Synergy(S2): This configuration highlights the significance of high-level entrepreneurial orientation,combined with exploitative learning and business model innovation,in the context of dynamic environmental conditions.Exploratory Learning-Business Model Innovation Synergy(S3): This path suggests that high levels of entrepreneurial orientation,exploratory learning,business model innovation,and environmental dynamism collectively contribute to superior tech-based firm performance.Conversely,the study identifies configurations associated with suboptimal tech-based firm performance.A high level of entrepreneurial orientation and environmental dynamism,in the absence of exploitative learning and business model innovation,leads to lower tech-based firm performance.Additionally,configurations featuring low levels of exploratory learning,exploitative learning,and business model innovation are linked to diminished tech-based firm performance.This research endeavors to enrich the discourse within the "strategy-learning-innovation-performance" paradigm by elucidating the intricate interplay between entrepreneurial orientation,organizational learning,and business model innovation in shaping tech-based firm performance.By crafting a comprehensive theoretical model,this study ventures beyond the surface to demystify the complex pathways through which entrepreneurial orientation exerts its influence on corporate outcomes,thus shedding light on previously unexplored dimensions of this relationship.Furthermore,through the establishment of an "environment-organization" congruence framework,the study undertakes a nuanced examination of the synergistic effects of entrepreneurial orientation,organizational learning,business model innovation,and environmental dynamism on tech-based firm performance.This approach facilitates a deeper understanding of the multifaceted mechanisms at play,offering a holistic view of how these elements collectively navigate the intricate landscape of tech-based firm performance enhancement.Moreover,by integrating strategic choice theory,organizational learning theory,and innovative behavior theory,the research not only deepens the theoretical underpinnings of these domains but also broadens the scope of inquiry into the practical implications of entrepreneurial orientation for technology-based firms.The findings provide robust theoretical underpinnings for the formulation of entrepreneurial strategies and the implementation of targeted actions,thereby contributing significantly to both academic literature and practical applications in the realm of technology-driven business strategy.