IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i6p3585-d774404.html
   My bibliography  Save this article

Capturing Emerging Business Opportunities through Entrepreneurial Orientation and Innovation Behavior: The Moderating Role of Leader-Member Exchange

Author

Listed:
  • Jun-Chul Ha

    (Department of Electrical System Engineering, Hanbat National University, Daejeon 34158, Korea)

Abstract

In the changing market environment due to the fourth industrial revolution, entrepreneurial orientation and innovation can accelerate the company’s sustainable growth, and performance improvement through the mutual relationship between leaders and members is essential. This study investigated the effect of the innovation behavior of entrepreneurial orientation on job performance by focusing on the conditional indirect effect of leader-member exchange (LMX) in the mediated relationship. To this end, research data were collected from 324 employees from different SMEs in South Korea. Based on the results, entrepreneurial orientation had a positive effect on innovation behavior and job performance. In addition, it was found that innovation behavior had a positive effect on job performance and partially mediated the relationship between entrepreneurial orientation and job performance. LMX showed a conditional indirect effect in the mediated model and moderated the relationship between risk-taking and job performance. The results have significant implications for SMEs pursuing entrepreneurial orientation, which was discussed. This study has significant implications in that high performance can be achieved by realizing the importance of employees’ innovation behavior and LMX within the company for sustainable management.

Suggested Citation

  • Jun-Chul Ha, 2022. "Capturing Emerging Business Opportunities through Entrepreneurial Orientation and Innovation Behavior: The Moderating Role of Leader-Member Exchange," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3585-:d:774404
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/6/3585/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/6/3585/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    2. Watson, Warren E. & Ponthieu, Louis D. & Critelli, Joseph W., 1995. "Team interpersonal process effectiveness in venture partnerships and its connection to perceived success," Journal of Business Venturing, Elsevier, vol. 10(5), pages 393-411, September.
    3. Van de Ven, Andrew R., 1986. "Central Problems in the Management of Innovation," Agricultural Research Policy Seminar 139708, University of Minnesota Extension.
    4. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    5. Rajagopal, 2014. "Organizations and Innovation," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 3, pages 58-86, Palgrave Macmillan.
    6. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    7. Frambach, Ruud T. & Schillewaert, Niels, 2002. "Organizational innovation adoption: a multi-level framework of determinants and opportunities for future research," Journal of Business Research, Elsevier, vol. 55(2), pages 163-176, February.
    8. Józef Ober, 2020. "Innovation Adoption: Empirical Analysis on the Example of Selected Factors of Organizational Culture in the IT Industry in Poland," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    9. Orfila-Sintes, Francina & Mattsson, Jan, 2009. "Innovation behavior in the hotel industry," Omega, Elsevier, vol. 37(2), pages 380-394, April.
    10. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    11. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    12. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    13. Purevdulam Altantsetseg & Kun-Cheng Chen & Man-Ling Chang, 2017. "Male and female leaders’ entrepreneurial leadership: A comparative study of Mongolia, Taiwan and Thailand on leader-member exchange," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(3), pages 145-153.
    14. Jeffrey G. Covin & Dennis P. Slevin, 1991. "A Conceptual Model of Entrepreneurship as Firm Behavior," Entrepreneurship Theory and Practice, , vol. 16(1), pages 7-26, October.
    15. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    16. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minjae Kim & Myongsop Pak, 2022. "Analysis of Factors for Korea’s Export Companies to Respond to Trade Remedies: Mediation Effect of Fairness Perception," Sustainability, MDPI, vol. 14(13), pages 1-25, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    2. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    3. Gema García-Piqueres & Ana-M. Serrano-Bedia & Marta Pérez-Pérez, 2019. "Knowledge Management Practices and Innovation Outcomes: The Moderating Role of Risk-Taking and Proactiveness," Administrative Sciences, MDPI, vol. 9(4), pages 1-22, September.
    4. Lin Wang & Murad Ali & Hyun Jeong Kim & Sareum Lee & Felipe Hernández Perlines, 2021. "Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2293-2312, July.
    5. Krzysztof Wach, 2015. "Entrepreneurial Orientation and Business Internationalisation Process: The Theoretical Foundations of International Entrepreneurship," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 9-24.
    6. Bojan Morić Milovanović & Mirjana Grčić Fabić & Vjekoslav Bratić, 2023. "Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries," Administrative Sciences, MDPI, vol. 13(2), pages 1-19, February.
    7. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    8. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    9. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    10. Catherine Allix-Desfautaux & Magali Chaudey & Muriel Fadairo & Nabil Khelil & Anne-Laure Le Nadant & Frédéric Perdreau & Fanny Simon-Lee, 2014. "Conditions d'émergence et de diffusion de l'innovation au sein des réseaux de franchise," Working Papers hal-01675707, HAL.
    11. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    12. Adomako, Samuel, 2021. "Resource-induced coping heuristics and entrepreneurial orientation in dynamic environments," Journal of Business Research, Elsevier, vol. 122(C), pages 477-487.
    13. Anderson, Brian S. & Eshima, Yoshihiro, 2013. "The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs," Journal of Business Venturing, Elsevier, vol. 28(3), pages 413-429.
    14. Jintong Tang & Zhi Tang & Birton J. Cowden, 2017. "Exploring the Relationship between Entrepreneurial Orientation, CEO Dual Values, and SME Performance in State–Owned vs. Nonstate–Owned Enterprises in China," Entrepreneurship Theory and Practice, , vol. 41(6), pages 883-908, November.
    15. J. Ruben Boling & Torsten M. Pieper & Jeffrey G. Covin, 2016. "CEO Tenure and Entrepreneurial Orientation within Family and Nonfamily Firms," Entrepreneurship Theory and Practice, , vol. 40(4), pages 891-913, July.
    16. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    17. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    18. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    19. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    20. Dhruv Grewal & Gopalkrishnan R. Iyer & Rajshekhar (Raj) G. Javalgi & Lori Radulovich, 2011. "Franchise Partnership and International Expansion: A Conceptual Framework and Research Propositions," Entrepreneurship Theory and Practice, , vol. 35(3), pages 533-557, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3585-:d:774404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.