Research On Strategic Assets,Portfolio Entrepreneurship And Venturing Growth In Chinese Private-owned Firms

After more than30years of reform and opening up, thriving private economy, which are composed of majority of family business, has already been an important force to promote china’s economic development and social entrepreneurship. These private enterprises are more in a low-added-value links of industries, the lack of core technology and its own brands, the extensive mode of production and management, disorderly competition and "the bottom competition" are the norm. However, since the U.S. subprime mortgage financial crisis of2008, the world economic landscape change and the rise of trade protectionism in Europe and America, highly dependence on export’s private enterprises, their exports sharply decline, coupled with the lack of independent innovation ability, some industries overcapacity and due to rising labor costs, and structural labor shortage, caused a large number of private enterprises to cease and fail. In this severe internal and external situation, china’s private enterprises want to achieve long-term survival and development, need urgently to solve two major problems:first, private enterprises implement the industrial transformation and upgrading, that is, need to upgrade traditional industries, and at the same time get into the emerging strategic industries; second, private enterprises achieve the growth of trans generational entrepreneurship. At present china’s private enterprises are in the first generation to the second generation succession and common entrepreneurial stage, the need to be done successfully for wealth creation, in order to obtain further survival and development.On the above two questions, china’s private enterprises can only continue to grow business in order to obtain long-term survival and growth, while western portfolio entrepreneurship theory is the most appropriate and the most suitable background for china’s private enterprisers to break the present impasse, provides a feasible way to resolve. Portfolio entrepreneurship is a relatively young field of entrepreneurship research. Western economics scholars mainly apply it to the research on growth of medium-small-micro firms, is seen as a strategy of medium-small-micro firms growth. In recent years, it has also been an increasing number of large multinational companies as a multi-brand strategy implementation to be applied. However, western portfolio entrepreneurship theory mainly analyze from the individual level of entrepreneurs, too much emphasis on the role of individual entrepreneur, and ignoring the role of enterprise system itself, stripped of individual entrepreneur system and enterprise system complementary role, not suitable for china’s political, economic, and cultural uniqueness and industrial development stage. Especially with the context of facing the restructuring and upgrading as well as transgeneration entrepreneurship for china’s family businesses, enterprise resources and individual entrepreneur resources are closely linked together. Meanwhile, portfolio entrepreneurship should be an organizational level of concept, therefore, it is urgent need to explain the important role of portfolio entrepreneurship phenomena from the organization level.Therefore, this study regards company as the unit of analysis, from the organizational level presents the portfolio entrepreneurship concept of collective dimension, and links the portfolio entrepreneurship to the entrepreneurial businesses’ growth performance as a key way to realize entrepreneurial growth of private enterprises, invests the performance improvement mechanism of portfolio entrepreneurship for private enterprises transformation and upgrading. Meanwhile, considering the companies engaged in portfolio entrepreneurship need to apply existing enterprise resources, therefore, based on the perspective of strategic asset theory, explores the mechanism for promoting private enterprises engaged in portfolio entrepreneurship. In order to effectively capture and portray the portfolio entrepreneurship of private enterprises, this study, through the complex scale development procedure, the concept of portfolio entrepreneurship for private enterprise is operationalized. Specifically, through four layers of in-depth research, this study is on the basis of the specific theoretical perspective, comprehensively analyzes the antecedents and consequences of portfolio entrepreneurship.Studyl operationalized the concept of portfolio entrepreneurship by the strict scale development program. The present conceptions defined are mainly from the perspective of portfolio entrepreneurs based on individual unit, emphasizing on entrepreneurs meanwhile own ownership of more than one enterprises. On the basis of literature analysis, the study puts forward a collective dimension definition from the organizational level based on company unit. With depth interviews of27owners, pre-testing of60employees&theoretical auditing of4scholars, the study formulates the portfolio entrepreneurship scale and767private enterprises of successful portfolio entrepreneurship are surveyed, and332valid questionnaires are collected. The study uses SPSS18.0&AMOS17.0to analyze the scale reliability&validity of exploratory&confirmatory factors. The result indicates good reliability and validity of scale. The portfolio entrepreneurship is a multi-dimension construction, consisting of four dimensions:product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing and strategy portfolio fitting. The study also points out the implications of theory and practice, limitations, and future direction toward enterprise.Based on western strategic asset literature, study2constructs the theoretical models, from the private enterprises collected the relevant data, explored the three kinds of strategic assets (relational capital, reputational capital, and intellectual capital) how to impact on the four dimensions of portfolio entrepreneurship. The empirical results demonstrate:(1) Intellectual capital has a significantly positive effect on the product portfolio innovation, the key roles are the structural capital and customer capital, followed by the human capital. Reputation capital has a significant effect on product portfolio innovation, but the effect is lower than intellectual capital;(2) Relational capital has a significantly positive effect, the key role is government relation, followed by the business relation;(3) Intellectual capital has a partial significantly positive effect on divisional portfolio venturing, the key roles are its human capital and structural capital. Reputation capital has a significantly negative effect on divisional portfolio venturing, the key role is its economy reputation, followed by the social reputation;(4) Intellectual capital has a partially significant effect on corporate strategy portfolio renewal, the key role is its structure capital. This study not only verifies the robustness of three kinds of strategic asset scales, further enriches the theory of strategic assets, but also provides an effective way for portfolio entrepreneurship growth of private enterprises.Study3empirically examines the moderating effect model of entrepreneur types on the relation of portfolio entrepreneurship and venturing enterprises growth performance. Data analysis results show that:(1) In the process of portfolio entrepreneurship, different dimension of portfolio entrepreneurship has a different effect on venturing growth performance. Among them, dynamic product portfolio innovation, corporate portfolio venturing and corporate strategy portfolio renewal have significant positive effects, and dynamic division portfolio venturing has no significant effect;(2) Further analysis of moderating effect shows, the relation between dynamic product portfolio innovation, corporate portfolio venturing, corporate strategy portfolio renewal as well as growth performance of venturing firms has different result in different type of firm. Among them, dynamic corporate portfolio venturing has significant effect only in firms of novice entrepreneur, other two dimensions have a certain stably effect on growth performance of venturing firms. These results indicate that types of entrepreneurs have partially moderating effect on the relation between portfolio entrepreneurship and growth performance of venturing firms. The study not only enriches the portfolio entrepreneurship further, but also provides a valid path for the growth of private enterprises in china.Study4adopts the smartpls2.0software to carry on the PLS-SEM analysis, and systematically explores the three kinds of strategic assets how to influence on the entrepreneurial enterprise’s growth performance, and what respective mediating effect of four dimension (product portfolio innovation, divisional portfolio venturing, and corporate portfolio venturing) is in the process of portfolio entrepreneurship, and compares the difference between the enterprises of novice entrepreneur and enterprises of habitual entrepreneurs.How the strategic assets impact on the venturing growth performance, this study found:(1) Reputation capital influences on the venturing growth performance. Both economic reputations in the enterprises of novice entrepreneur group and habitual entrepreneur group have a significantly positive effect on the venturing growth performance, there is no difference between two groups. However, on social reputation how to impact on venturing growth performance, there is an opposite impact between two groups. Among them, social reputation of novice entrepreneur group has a significantly negative impact on venturing growth performance, but social reputation of habitual entrepreneur group has a significantly positive impact on venturing growth performance.(2) Relational capital influences on the venturing growth performance. Both government relations in the enterprises of novice entrepreneur group and habitual entrepreneur group, have a significantly negative effect on the venturing growth performance, there is no difference between two groups. In addition, on business relation how to impact on venturing growth performance, there is an opposite outcomes between two groups. Among them, in the novice entrepreneur group, business relation has a significantly positive impact on the venturing growth performance, but has a significantly negative impact on venturing growth performance in the habitual entrepreneur group.(3) Intellectual capital impacts on the venturing growth performance. Both human capitals in the enterprises of novice entrepreneur group and habitual entrepreneur group have a significantly positive effect on the venturing growth performance, there is no difference between two groups. However, about structural capital how to influence on the venturing growth performance, structural capital has a significantly positive influence on the venturing growth performance, but has no significant impact on the venturing growth performance in the habitual entrepreneur group, there is no difference between two groups. On customer capital how to impact on the venturing growth performance, customer capital has a significantly negative impact on the venturing growth performance in the novice entrepreneur group, while customer capital has a significantly positive impact on the venturing growth performance in the habitual entrepreneur group, there is a significant difference between two groups.Portfolio entrepreneurship has a mediating effect on the relation of strategic assets and venturing growth performance, this study found:(1) Portfolio entrepreneurship has a mediating effect on the relationship of reputation capital and venturing growth performance. In the novice entrepreneur group, the four dimensions of product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have a partial mediating effect on the relation of economic reputation and venturing growth performance; In the habitual entrepreneur group, the two dimensions of corporate portfolio venturing, strategic portfolio renewal have a partial mediating effect, however, the two dimensions of product portfolio innovation, divisional portfolio venturing have no mediating effect.In the novice entrepreneur group, the three dimensions of product portfolio innovation, corporate portfolio venturing, strategic portfolio renewal have a partial mediating effect on the relation of social reputation and venturing growth performance, but divisional portfolio venturing has no mediating effect. In the habitual entrepreneur group, the two dimensions of corporate portfolio venturing, corporate strategy portfolio renewal have a partial mediating effect, but product portfolio innovation and divisional portfolio venturing have no mediating effect.(2) Portfolio entrepreneurship has a mediating effect on the relationship of relational capital and venturing growth performance. In the novice entrepreneur group, the three dimensions of divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have a partial mediating effect on the relation of business relation and venturing growth performance, but product portfolio innovation has no mediating effect. In the habitual entrepreneur group, the four dimensions of product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have no mediating effect.In the novice entrepreneur group, the four dimensions of product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have no mediating effect on the relation of government relation and venturing growth performance. In the habitual entrepreneur group, the two dimensions of corporate portfolio venturing and corporate strategy portfolio renewal have a partial mediating effect, but product portfolio innovation and divisional portfolio venturing have no mediating effect.(3) Portfolio entrepreneurship has a mediating effect on the relationship of intellectual capital and venturing growth performance. In the novice entrepreneur group,the three dimensions of product portfolio innovation, divisional portfolio venturing and corporate portfolio venturing have a partial mediating effect on the relationship of human capital and venturing growth performance, but corporate strategy portfolio renewal has no mediating effect. In the habitual entrepreneur group, corporate portfolio venturing has a partial mediating effect, but the three dimensions of product portfolio innovation, divisional portfolio venturing and corporate strategy portfolio renewal have no mediating effect.In the novice entrepreneur group, the four dimensions of product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have a partial mediating effect on the relation of structural capital and venturing growth performance. In the habitual entrepreneur group, the two dimensions of corporate portfolio venturing and corporate strategy portfolio renewal have a partial mediating effect, but product portfolio innovation and divisional portfolio venturing have no mediating effect.In the novice entrepreneur group, the four dimensions of product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal have a partial mediating effect on the relation of customer capital and venturing growth performance. The two dimensions of corporate portfolio venturing and corporate strategy portfolio renewal have a partial mediating effect, but product portfolio innovation and divisional portfolio venturing have no mediating effect. This study can provide effective theoretical guidance and practical inspiration for the private enterprises which are in the stage of transformation and upgrading as well as transgenerational entrepreneurship. Based on above four sub-study findings, the study concludes with a discussion of the theoretical contributions of research results and practical inspiration, puts forward the corresponding policy recommendations for private enterprise growth and local government governance.The innovation of the paper focuses on the following aspects:(1)Coupling the three kinds of strategic assets, and they are suitable for the Chinese by operationalized. The theoretical and empirical analysis of their respective the internal mechanism of venturing growth performance. In previous studies, the general is a single type of reputation capital, relational capital and intellectual capital about influencing on the enterprise performance. Few studies have put the three types of capital coupling analysis and compared the strength and weakness of their impacting on the enterprise together, especially there are few analysis of putting the three kinds of capital with corporate entrepreneurship together by scholars.Through theoretical analysis and empirical testing the different dimension of three kinds of strategic assets how to affect the different portfolio entrepreneurship model, thereby affect the mechanism of venturing growth performance. This provides a shortcut for private enterprises in the application of different strategic assets, and the most effectively matching corresponding models of portfolio entrepreneurship, in order to maximize the synergies to improve the venturing growth performance. Therefore, it is relatively new in this study place.(2)Based on the unit of company, put forward the portfolio entrepreneurship definition of collective dimension from organization level, make up for the deficiency of corporate entrepreneurship and western portfolio entrepreneurship. The existing corporate entrepreneurship research emphasizes on the common three kinds of innovation"、"venturing"、"strategic renewal" models, but this definition is too general and doesn’t describe enterprise to main or keep the original components, establish the new one, old and new components together promote the enterprises to grow dynamics. This study learned from existing corporate entrepreneurship models, developed four dimensions of portfolio entrepreneurship, namely product portfolio innovation, divisional portfolio venturing, corporate portfolio venturing, corporate strategy portfolio renewal. The four new dimensions of portfolio entrepreneurship can vividly and clearly cover the common models of venturing growth, therefore, expand the connotation and extension of corporate entrepreneurship research.The western research of portfolio entrepreneurship has been the highlight of the individual role of entrepreneur, is the individual level of analysis. The individual level of analysis cannot show that company itself has a dynamics and influence, after all, entrepreneurship is a process of the integration of people, finance, and material of the entire company, a lot of resource and support of that gave entrepreneurs come from the organization’s existing stocks, also requires companies in the future to give entrepreneurs all kinds of support in the entrepreneurial process, therefore, it is not some entrepreneur individual entrepreneurship. Portfolio entrepreneurship based on analysis unit of organizational level expounds the important role played by the company.(3) This study explores the mechanism that entrepreneurs influence the venturing growth performance from the theoretical and empirical analysis. Entrepreneurs are divided into novice entrepreneurs, serial entrepreneurs and portfolio entrepreneurs, the latter two are called habitual entrepreneurs, they are the perpetrators of the company portfolio entrepreneurship, are one of the critical factors of venturing growth performance. In sub-study3, entrepreneurs are divided into novice entrepreneurs, serial entrepreneurs, and portfolio entrepreneurs, and grouped in three hierarchical regression analysis, while in sub-study4, further divided into novice entrepreneur group and habitual entrepreneur group to carry on path modeling analysis, the results showed that:because of different types of entrepreneurs have different entrepreneurial experiences, management experiences, interpersonal networks, expertise, industry knowledge, and have different stock of intangible resources, and the ability to acquire, restructure, integrate, and operate the intangible resources. The intangible resource stock and intangible resource capability of these entrepreneurs directly affect the use efficiency and effectiveness of these strategic assets, thereby affecting the ability to control the process of portfolio entrepreneurship, which ultimately affect the success or failure of portfolio entrepreneurship and venturing growth performance. The multiple group comparison analysis of two sub-study show that different type of entrepreneurs use the strategic assets to carry on the portfolio entrepreneurship, its impact on the venturing performance is a significant different. This benefits the bearer choice of transformation and upgrading as well as transgenerational entrepreneurship, and provides direct references and learned from it.(4) The analyzing method adopts the novel PLS-SEM path modeling and the use of the Baron and Kenny (1986) four-step and Sobel test for mediation effects test. Sub-study4adopts the multi-group PLS-SEM path modeling analysis. At present, the statistical method is relatively new. The model which constructs can truly reflect the individual indicator’s role of the constructs, and more realistically reflects the inherent path of the entire model. By dividing entrepreneurs into novice entrepreneurs and habitual entrepreneurs, the thesis further validates the different functions of four dimensions on portfolio entrepreneurship. In the analysis of mediating effect, the thesis adopts Baron and Kenny (1986) four-step (Four-step procedure) and Sobel test (Sobel,1982) to explore and validate the four dimensions’functions of portfolio entrepreneurship in the novice entrepreneur enterprise and habitual entrepreneur enterprises. This kind of mediating effect most clearly articulates the specific process mechanism.Portfolio entrepreneurship at home and abroad is a relatively young field of entrepreneurship research. This thesis only makes a preliminary exploration, only involves in the influence issues of strategic asset stock and entrepreneur types when private enterprises implement the transformation and upgrading. However, in reality, private enterprises engages in the portfolio entrepreneurship, are more profoundly subject to the impact of institutional environment change, can further integrate the institutional environment change with portfolio entrepreneurship to further explore the unique role of portfolio entrepreneurship field in future.