A Study On The Impact Of Financial Flexibility On Entrepreneurship Orientation And Its Effectiveness In Uncertain Environment

In the face of risks and opportunities brought by environmental uncertainty,only when an enterprise implements an entrepreneurial orientation strategy can it overcome path dependence and have sustainable competitive advantages.However,due to the unclear formation and transformation mechanism of entrepreneurial orientation,the determinants,effectiveness and other basic theoretical issues remain unresolved,especially the lack of research from the perspective of financial resources or capabilities.It is under the above realistic and theoretical background that this paper,attempting to comprehensively apply the balance theory and resource-based theory in the strategic management theory framework,deeply analyzes the influence mechanism of enterprise financial flexibility on entrepreneurial orientation and its effectiveness.Within this framework,financial flexibility is enterprises' core competitiveness of financial resource utilization under environment uncertainty.On this basis,the theoretical hypothesis was tested by using panel data and Propensity Score Matching(PSM),Spatial Dobin Model(SDM),Generalized Moment Estimation(GMM)and other methods of gem listed companies from 2012 to 2017,and the following conclusions were mainly drawn.(1)The availability of resources determines the entrepreneurial orientation level of enterprises,but the larger entrepreneurial orientation level is not always better.There is an inverted u-shaped curve relationship between the entrepreneurial orientation level and enterprise performance.Entrepreneurial orientation is a resource-consuming strategy.The formation and level of entrepreneurial orientation depend on the availability of resources.From the perspective of conversion benefits and costs,the higher level of entrepreneurial orientation is not always better.Moderate entrepreneurial orientation level of conversion benefits may be higher than the conversion costs,but excessive entrepreneurial orientation level often produces negative performance impact.(2)Resource flexibility is positively correlated with the effectiveness of entrepreneurial orientation,which can strengthen(weaken)the positive correlation(negative correlation)between moderate(excessive)entrepreneurial orientation level and enterprise performance.Enterprises with higher resource flexibility can easily and quickly convert the resources they use into new uses at a lower cost,so they can meet the requirements of entrepreneurial orientation in a short time and further obtain the first-mover advantage and excess profit brought by entrepreneurial orientation.By contrast,it is difficult for enterprises with low resource flexibility to meet these needs of entrepreneurial orientation.(3)There is a significant positive correlation between the level of financial flexibility reserve and the availability of resources.Therefore,sufficient financial flexible reserve can promote the level of entrepreneurial orientation by improving the availability of resources.Financial flexibility not only has the property of passive risk prevention from the traditional perspective,but also has the property of opportunity utilization that helps enterprises reduce the cost of capital to improve enterprise resource availability,which all help meet the demand of the entrepreneurial orientation strategy of resource availability.(4)There is an inflection point in the value sense of financial flexibility reserve,and only an appropriate level(that is,target financial flexibility)can promote the effectiveness of entrepreneurial orientation.Although financial flexibility reserve level is related to the level of entrepreneurial orientation,it is not the bigger the better.Only target financial flexibility can strengthen(weaken)the relationship between moderate(excessive)level of entrepreneurial orientation and enterprise performance,while there is no significant positive significance for entrepreneurial orientation when financial flexibility reserve level is too high or too low.(5)When the actual level deviates from the target value,the financial flexibility reserve will continue to adjust to the target direction,and the dynamic adjustment speed is significantly positively correlated with entrepreneurial orientation.The stronger the dynamic adjustment ability of financial flexibility,the faster the adjustment speed,the more quickly the financial flexibility reserve can be adjusted to the desired level,so as to meet the demand of entrepreneurial orientation for resource availability.Therefore,there is a significant positive correlation between the speed of financial flexibility adjustment and entrepreneurial orientation,and the higher the degree of environmental uncertainty,the more significant the above relationship is.(6)The dynamic adjustment speed of financial flexibility is significantly positively correlated with the flexibility of resources,so enterprises with faster financial flexibility can promote the effectiveness of entrepreneurial orientation by improving the flexibility of resources.Dynamical adjustment ability of the financial flexibility,comprehensively composed of adaptive capacity,coordination capacity and innovation capacity,can quickly adjust the stock of financial resources at low costs to adapt to the demand change,promote the coordination of financial resources and other resources,and improve the configuration mode and use of financial resources direction,thus improve the resource allocation efficiency of non-flexible resources and resource integration ability of flexible resources to promote resource flexibility.The main innovation of this paper is reflected in the following aspects:(1)The theoretical analysis framework of the relationship between financial flexibility and entrepreneurial orientation is established in the strategic management system.Going back to its roots,entrepreneurial orientation comes from the research of strategic decision-making mode by scholars of strategic studies,whose theoretical roots can be traced back to the view of strategic choice,which emphasizes that the entry behavior of new opportunities can be effectively implemented through purposeful strategic behaviors.Entrepreneurial orientation is a competitive strategy aiming at creating core competitiveness and obtaining competitive advantages,while financial flexibility can be regarded as a financial functional strategy or core competitiveness.Therefore,the discussion on financial flexibility entrepreneurial orientation and its effectiveness should be placed within the framework of strategic management theory.Based on the theory of strategic management and the framework of analysis established,and following the classical paradigm of "strategic analysis,strategic choice and strategic implementation",this paper proposes the research main line of "financial flexible,entrepreneurship orientation,enterprise performance" and establishes the corresponding content framework.(2)Based on the resource-based theory,this paper reveals the formation and transformation mechanism of entrepreneurial orientation strategy.Although relevant researches based on resource-based theory have made clear the important significance of basic resources in the formation and transformation of entrepreneurial orientation,they have not yet made clear the different roles of resources in the formation and transformation of entrepreneurial orientation,and have not yet constructed the logic thinking with academic and authoritative features.Based on the existing research,this paper attempts to clarify the different roles of resource availability and resource flexibility characteristics in the formation and transformation of entrepreneurial orientation,and further deepen and standardize the research on entrepreneurial orientation based on resource-based theory.This paper finds that the availability of internal and external resources determines the entrepreneurial orientation level of enterprises,but the larger the entrepreneurial orientation level is not always better.There is an inverted u-shaped curve relationship between the entrepreneurial orientation level and enterprise performance.Resource flexibility is positively correlated with the effectiveness of entrepreneurial orientation and can effectively promote the effectiveness of entrepreneurial orientation.(3)The influence of financial flexibility on entrepreneurial orientation and its effectiveness is verified from both static and dynamic perspectives.Most of the existing literature studies the level of financial flexible reserve from a static perspective.This paper tries to explore the influence of financial flexibility reserve level and adjustment ability on entrepreneurial orientation and its effectiveness from both static and dynamic perspective,and further expand the research perspective of financial flexibility.This paper finds that although the level of financial flexibility reserve is positively correlated with the level of entrepreneurial orientation,while the larger level of reserve is not always better.Only the target financial flexibility can promote the effectiveness of entrepreneurial orientation.Moreover,the financial flexibility reserve will be continuously adjusted to the target direction,and the dynamic adjustment speed is significantly positively correlated with entrepreneurial orientation.In addition,the dynamic adjustment speed of financial flexibility is also significantly positively correlated with the flexibility of resources.Therefore,enterprises with faster financial flexibility can promote the effectiveness of entrepreneurial orientation by improving the flexibility of resources.