A Study Of The Influence Of Entrepreneurial Orientation On New Firm Performance

In recent years, with the rapid development of entrepreneurial activities in ourcountry, which give birth to many new firms, as the new force of the market economy,the contribution of new firms to the society is mainly manifested in two aspects: thefirst is to promote the creation of social wealth, and stimulate the development of theregional economy; the second is to add new jobs, and led more people to socialemployment. At present, the economy is entering the third round of restructuring andreforming of the key stage in our country, new firms are facing increasingly turbulentmarket environment, customer demand become more personally and products andservices become increasingly fiercely, the dynamic changes of external environmentto new firms brought a series of difficulties and challenges to survival and growth.New Firms how to better meet customer needs? How to get higher market share in thefierce competition of products and services? How to improve business performance?New firms had to solve these serious problems as soon as possible.At present, existing research shows that entrepreneurial orientation is aneffective strategic choice for new firms to deal with the current difficulties andchallenges. It will improve overall performance of new firms. However, because ofthe different academic research perspective, there are still divergent conclusions inentrepreneurial orientation affect the performance of new firms.This paper focuses on the fundamental problem:“how does entrepreneurialorientation affect new firm performance?”, then builds a relationship model ofentrepreneurial orientation and business model innovation with new firm performance,and gradually answer the following questions: How does entrepreneurial orientationimpact on the new firm performance? How does entrepreneurial orientation impact onbusiness model innovation? How does business model innovation impact on the newfirm performance? In the entrepreneurial orientation and new firm performancerelationship, whether the business model innovation has played a significantintermediary role?In response to these problems, this paper uses the empirical research methods,combining the qualitative and quantitative analysis of organic. Reviewing theliterature, building a basic relational model, using the SPSS16.0to analysis theeffectively sample data, and putting forward the specific research hypothesis. At theend, draw the conclusions of this paper as follows. (1) Entrepreneurial orientation is a multidimensional conception, including threedimensions: innovative, risk tolerance and advanced mobility. And the dimensions aremutually independent. Furthermore, innovative and advanced mobility can have asignificant positive effect on new firm performance. While risk tolerance affect thenew firm performance is not significant.(2) Entrepreneurial orientation can have a positive impact on business modelinnovation. As we all know, with the environment changing, the business model alsorequires constant innovation. Entrepreneurial orientation of new firms contributes tothe business model innovation, and taking advantage of new market opportunities.(3) Business model innovation has a positive impact on new firm performance.Specifically, the customer value proposition is the starting point of the business modelinnovation, and it is the premise of the new firm performance; Value creation anddelivery is the key to business model innovation, and it is an indemnification toenhance the new firm performance; Value capture innovation is the end of thebusiness model innovation, and it is the core to improve the new firm performance.(4) Overall, entrepreneurial orientation directly affects new firm performancesignificantly less than its indirect effects. Furthermore, between the relationship ofdimension of innovative and advanced mobility and the new firm performance,business model innovation has played a significant intermediary role; while betweenthe relationship of dimension of risk tolerance and the new firm performance,business model innovation is not play a significant intermediary role.Innovations of this study are as follows:(1) This study has demonstrated that entrepreneurial orientation directly affectsnew firm performance significantly less than its indirect effects.(2) This study has proposed a theoretical model in which business modelinnovation is an intermediate variable, which explore that between the relationship ofdimension of innovative and advanced mobility and the new firm performance,business model innovation has played a significant intermediary role.