A Study On The Relationship Between Entrepreneurial Orientation And Firm Performance Of SEMs In Zhejiang Province

With China's economic system reform and open-up deepening, SEMs have developedfastly with the support of the policy. And SEMs have played the important role of nationaleconomy growth. However, in the same situation, we find some measures are taken to makesome firms progress or achieve success, and they will grow steadily, while the others will beat a standstill or fail. Many Western attempt to explain the phenomena with entreperneurialorientation(EO), which refers to the processes, practices and decision-making activities thatlead to new entry. The new entry is charateristic of Innovativeness, pro-activeness, risk taking,competitive aggressive-ness. Many researchers have study the construct elements ofentrepreneurial orientation(EO) and the relationship between entrepreneurial orientation(EO)and firm performace, but they have many different perspectives in the academic about them.The former studies, including empirical researches, had almost been conducted in the Westerncontext,while lacking of exploration and empirical in the background of China.In the periodof transition, whether the same construct elements of entrepreneurial orientation as the West?And whether some firms will get higher performance if they have a high EO? And whethersome factor moderate the relationship between EO and firm performance?This study is to explore the construct of EO in SEMs, try to develop a measurement scaleof EO, and research the relationship between EO and firm performace, and take dynamismand hostility as moderator in the relationship between EO and firm performace, in thebacekground of china. Expect to provide some theoretical evidence for the practice of SEMsentrepreneurship in China.Based on some overviews of former studies, this study proposed a theoretical hypothesis ofEO in Zhejiang's SEMs. And together with open-ended questionnaires, this study investigatethe condition of SEMs in Zhejiang procince. The questionnaire was designed on the basis ofLikert Five Scale. We analysis the data by Descriptive Statistics, Factor, Anova, Correlate,Regression, and so on. We study the relation between EO and firm performance, and therelation between each dimension of EO and firm performance by empirical analysis. And wetest and verify whether envionmental dynamism and hostility are moderator between themor not.The conclusions could be draw: (1)EO is positively with firm performance, and eachdimension of EO is positively with firm performance. (2) The relationship between innovativeness and firm performance is moderated by envionmental dynamism. Therelationship between competitive aggressiveness and firm performance is moderated byenvionmental dynamism. The relationship between proactiveness and growth performance ismoderated by envionmental dynamism. The relationship between proactiveness and firmperformance is moderated by envionmental dynamism. The relationship between risk-takingand growth, risk-taking and firm performance are moderated by envionmental dynamism,but the significant are low (sig.=0.1) and the direction are negative. The moderating effect ofthe relationship between proactiveness and profitability, risk-taking and profitability are notsupported. (3) The relationship between each dimension of EO and growth, each dimensionof EO and firm performance are moderated by envionmental hostility, but the directions arepostive. The moderating effect of the relationship between innovativeness and profitability,proactiveness and profitability, competitive aggressiveness and profitability are not supported.At the same time, The moderating effect of the relationship between risk-taking andprofitability, growth and firm performance are not supported.Finally, based on the discussion of findings, the paper concluds theoretical contribution, aswell as SEMs implications. At the same time the paper presents limitations of the study andpotential avenues for future research.