Relevant Study On Entrepreneurial Orientation And Performance Of SMEs In Jilin Province

Entrepreneurial behaviors are becoming the strong driving force for economic development in the world. In China the SMEs which are on behalf of the entrepreneurial enterprises are rising rapidly. They are becoming more and more important on ensuring the appropriate growth of the national economy, easing the employment pressure and so on. In the strategy called by CPC Central Committee and State Council that is revitalization of the old industrial bases in Northeast of China, Private Economy of Jinlin Province Shows the situation of strong development. Until June, 2007, the number of the SMEs has been 98.7% of the number of the whole enterprises in Jilin Province. It is excepted that the added value of the SMEs should be 45% of the whole province's GDP, the paid taxes should be 30% of the financial income, the number of employees should be 60%.At the end of "11th Five-Year Plan", the added value of the SMEs will be over 50% and the paid taxes will be over 1/3. The SMEs will become an important driving force of the province's economic development. However, compared with developed province,the SMEs in Jinlin start late and many of them are small size , low level of technology and management, uncompetitive of products,unscientific in decision-making.It is an important problem to how to solve the development confusion of the SMEs.So it is great value to make a research on how to make their own efforts to play entrepreneurship, what kind of entrepreneurial orientation to persist in order to success, what advantages showed by the successful SMEs are worth to be learned by others and so on. Chinese enterprises have been in the tide of the global entrepreneurial orientation for long. But the research on entrepreneurial orientation which is made by Chinese is still at the initial stage now. Theoretical study falls behind the development of practice.The author thinks our scholars need compare the factors of entrepreneurial orientation in the backgrand of China with the other foreign countries and make empirical tests on the relations of entrepreneurial orientation and performance of the SMEs in China by the foreign common measurement method urgently. So this paper makes a relevant study on entrepreneurial orientation and performance of SMEs in Jilin Province in order to provide a theoretical reference to the development of the SMEs and the formulation of the policy. Based on the above views, the paper expects to achieve the following objectives through collecting pre-primary survey data and doing statistical analysis:1. Research on the inclination of entrepreneurial orientation, industrial environment and performance.2. Test the impact on performance respectively from entrepreneurial orientation and industrial environment.3. Test the impact on performance together from entrepreneurial orientation and industrial environment.The concrete structure of the paper is as follow:The first chapter is the introduction. It tells mainly the background and significance of the paper and shows the basic framework and innovation.The second chapter is the theoretical beginning and basis of the paper. It summarizes of the main theoretical literature of SMES, entrepreneurial orientation, industrial environment and performance and provides the referent range of the design of the questionnaire.The third, forth, fifth chapter are the main part of the paper. The third chapter proposes assumptions of this paper after the literature summary. The forth chapter tells the selection, source and recovery situations of the information. It also tells the factors of the entrepreneurial orientation, industrial environment and performance. Research model is selected the regression analysis and the paper ensures the analysis method. The fifth chapter is empirical analysis. It uses principal component analysis and reliability testing, variance analysis and regression analysis, and then gets the impact on performance from entrepreneurial orientation and industrial environment.The results of the survey which are from the 115 enterprises of the seven major sectors of the SMEs in Jilin Province show that:The paper gets five factors of entrepreneurial orientation. They are innovativeness, risk take, proactiveness, competitive aggressiveness and autonomy. Many foreign researchers'studies are in accordance with Miller (1983).They think the characteristics of the entrepreneurial orientation are innovativeness, risk take and proactiveness. But Lumpkin & Dess(1996)suggested that it should include competitive aggressiveness and autonomy besides the above three.The results of the paper show that the samples in Jilin are in accordance with the five factors theory of Lumpkin & Dess. Overall samples tend to moderate degree of the entrepreneurial orientation. The trend of competitive aggressiveness and innovativeness is higher and the trend of autonomy is lower. The results show that the SMEs in Jilin tend to improve competitive position by the innovation of products. But it is serious that enterprises are governed by the leadership of the government. The autonomy is weak. This may be one of the reasons that the SMEs in our province fall behind the developed coastal provinces. The paper finds that the trend of entrepreneurial orientation and the performance of the SMEs are not significant differences because of the differences of the age and the size of the enterprises. Druck (1985) pointed out that not all the SMEs started late have the entrepreneurship.In fact the entrepreneurship is often owned by a long history of large enterprises. However, the real obstacle of the entrepreneurship and innovation is the manner of the operation of the organization, but is not the size.The study also finds that the entrepreneurial orientation and industrial environment interactively have an impact on the performance:Only considering the entrepreneurial orientation, when the organization has better innovativeness and proactiveness, the higher autonomy and the more competitive enthusiasm the staff have, the better the performance is. However, the over high-risk plan and action or the Great Leap Forward can have the opposite effect on the performance. Only considering the industrial environment, when the organization has higher cognitive on the competition of the industrial environment, the performance is the better. Both considering entrepreneurial orientation and industrial environment, when the industrial environment is more intense competition and the organization is more competitive and innovative, the performance is better.