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The Role of Creating Shared Value and Entrepreneurial Orientation in Generating Social and Economic Benefits: Evidence from Korean SMEs

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Listed:
  • Joohwan Seo

    (Department of Business Administration, School of Business, Dong-A University, Busan 49236, Republic of Korea)

  • Jiseon Lee

    (Department of Business Administration, School of Business, Dong-A University, Busan 49236, Republic of Korea)

  • Sunggwang Jung

    (Institute for Education Innovation, Center for Educational Performance Management, Dong-A University, Busan 49315, Republic of Korea)

  • Sangil Park

    (Division of Business Administration, College of Economics and Business, Sookmyung Women’s University, Seoul 04310, Republic of Korea)

Abstract

This study investigates the effect of entrepreneurial orientation (EO; one of the most broadly acknowledged firm-level constructs) on the performance of small- and medium-sized enterprises (SMEs). Furthermore, we analyze the moderator effect of creating shared value (CSV) on firm performance. Our analysis was conducted using a structural equation model on a stratified sampling method of 294 manufacturing and service SMEs in Korea. The results show that an SME’s efforts in some variables in EO constructs are statistically positively related to both its financial (economic benefits) and non-financial performance (social benefits). Our study results also reveal that there is a significant positive moderator effect of CSV on the EO-performance relationship. This implies that CSV, when bundled with EO, can boost firm performance and provide SMEs with not only a competitive and sustainable advantage but also reduces their risk. This research contributes to the extant literature by investigating the interactive effect of CSV on the relationship between EO and firm performance in the context of SMEs, which has received scant attention in the extant literature. In the last section, the limitations and future research agenda of this study are presented.

Suggested Citation

  • Joohwan Seo & Jiseon Lee & Sunggwang Jung & Sangil Park, 2023. "The Role of Creating Shared Value and Entrepreneurial Orientation in Generating Social and Economic Benefits: Evidence from Korean SMEs," Sustainability, MDPI, vol. 15(7), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:6168-:d:1115041
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