Empirical Study On The Impact Of Entrepreneurial Competency On Corporate Performance

With the rapid economic growth and the increased competition among enterprises, there is a growing emphasis on the huge role entrepreneurs play in the corporate performance upgrading process.Foreign scholars'focus have turned from the resources to the competency. Since the birth of the "theory of entrepreneurship" ,the related study deployed from the following three aspects : entrepreneurs, entrepreneurial competency, as well as the relationship between entrepreneurial competency and corporate performance. In recent years, due to the rise of the theory of resource capacity, our scholars begun to explain the corporate performance from the perspective of the entrepreneurial competency. However, due to the different national conditions and the different system,the characteristics of Chinese enterprises and the Chinese entrepreneurship are not necessarily able to adapt to the conclusions of foreign scholars, even show the opposite conclusion probably. From the perspective of the social capital of entrepreneurs, many scholars affirmed the positive impact of the relationship competency on corporate performance, The empirical research in context of China by He Xiaogang and other Chinese scholars had challenged the previous conclusion. Compared with the strategic competency and the management competency, it deemed that the contribute of the relationship competency to the corporate performance was not so obvious. Therefore, on the basis of referencing the abroad theory, Chinese scholars carried out a great deal of exploration in accordance with the actual situation of Chinese enterprises, Although the quantity is still little, it had a certain significance.Overall, however, Ghinese scholars didn't give Sufficient attention on the differences in performance caused by the different entrepreneurial competency with economies in transition. In particular, very few scholars studied the entrepreneurs in the specific region as a object. Then, in northeast China, whether the entrepreneurship can affect the corporate performance, which competency have the significant impact on the corporate performance, and whether the relationship competency of entrepreneurs is the most crucial factors become the important issues worth exploring.This paper was on the basis of the theory of the entrepreneurial competency ,used empirical research methods, on the basic of the integration of previous theory on entrepreneurship and its relationship with the performance. conducted along such four dimensions :strategic, management and government relations and social relations, measured the impact of entrepreneurial competency on corporate performance in Northeast China which is a particular area.First of all, this paper defined the concept of entrepreneurship, recalled the early entrepreneurship research, Clarified the meaning and the value of entrepreneurship, and put forward the significance of this study, determined the theoretical basis. Secondly, constructed the theoretical model, combed the evaluation index system from the four dimensions as strategic competency, managerial competency, the competency of government relations and the competency of the social relations. Third, made the study design, Cleared all variables and selected the sample. Fourth, made the data analysis and discussion. After data processing, doing the statistical descripting. After Testing the reliability and validity of the scale, Tested the hypotheses of this paper using correlation analysis and regression analysis. Finally, combined with the results of empirical analysis, explored the impact of the entrepreneurial competency on the corporate performance, and put forward the Rationalized proposals for the conclusions.This paper investigated the Northeast sample entrepreneurs, got a total of 110 valid samples. After measurement, the selected scale had good reliability and validity. The independent variables were strategy competency, managerial competency, the competency of government relations and social relations; dependent variable was the corporate performance, the measurement indicators are market share, sales, net profit and return on investment. The control variables mainly selected five variables: the nature of the corporate ownership, enterprise scale, the development stage of the company's main business areas in the industry, entrepreneurship education, entrepreneurs'time in office. After measurement, the selected scale had good reliability and validity.The empirical results showed that the entrepreneur's strategic competency and the competency of government relations, social relations all had the significant positive effects on corporate performance, but the impact of management competency was not significant. Through regression analysis and T-test, we had also given the sort of the impact of the competency factor on the corporate performance, That was to say, the government relationship competency was the most significant factors, then the social relationship competency, the strategic competency, finally the management competency. Because the government relationship competency and the social relationship competency were collectively referred as the relationship competency, Therefore, we could believe that the relationship competency was most significant. This paper hold that in the context of China, as the entrepreneurs in Northeast region, the Strategic response competency of entrepreneurs determined the degree of flexibility and adaptability of the organizations in the market to a large extent. Their relationship competency could be through establishing a variety of network to Access to various resources whice was required by the developmentof the corporate, Therefore, both were able to have a positive impact on corporate performance. Although the measurement results for the impact of the management competency on the corporate performance was not satisfactory, this may be due to sampling and other reasons, we also gave the relevant explanation in the text. generally speaking, the conclusions of the empirical Study effectively verificated the hypothesis put forward by this paper basically. The results by this paper was materially different from the research of He Xiaogang and other scholars, showing that the significance of the localization and regional research of the entrepreneurship.In addition, this paper also found that enterprises background variables and entrepreneurs'personal background variables also affect corporate performance. Among them, the nature of the corporate ownership, entrepreneurship education, entrepreneurs'time in office all had the significant positive impact on corporate performance. the development stage of the company's main business areas in the industry had the negative impact on corporate performance. enterprise scale could affect the corporate performance to some extent ,but it's not particularly notable. Of course, the role of these factors is not very robust. When the entrepreneurship as the influencing factors were introduced, the contribution of these background variables had been weakened, but these were all important factor that could not be ignored.The innovation of this paper was focusing on the impact of the entrepreneurship on corporate performance which was during economy transformation of China in the specific area. Through the empirical research, this paper verified the impact of the relationship competency on corporate performance in northeast region of China. It also gave the sort which was different from the previous conclusions, and it had enriched research to some extent, making it more localized and regional.Finally, for the conclusion of the study, combined with the situation in Northeast China, we put forward the management proposals and countermeasures from the practical point of view. Once this paper clarified the the impact of entrepreneurship on the corporate performance in the Northeast, it would be more conducive for the entrepreneurs to promote and bring up their own competency, and conducive to improve the status of enterprise management in Northeast China. Thus, they can sustainably improved the overall corporate performance finally. This study had a certain reference not only for the NorthEast entrepreneurs,but also for other areas.