A Study Of Mechanism Of Entrepreneurial Orientation To New Ventures Growth

In recent years, entrepreneurial and innovative behavior has become a key factor of economic growth, It has a more important practical significance in the current New Normal situation of China’s economy. Academic research on entrepreneurship has always been an important topic of management research, and entrepreneurial orientation theory has become a hot issue in entrepreneurship research since the eighty’s of last century. But in the past, research on the relationship between entrepreneurial orientation and firm growth performance did not reach consistent conclusions,based on the industrial organization and resource-based theory,in business practice, new venture’s entrepreneurial orientation strategy did not bring enterprise growth as expected, in some cases,even cause enterprise’s death. Institutionalism Theory make an explanation of this phenomenon: There are “new” and “small” faults of new ventures, this means market information asymmetry,the public’s unfamiliar with new venture’s products and services,stakeholders may not recognize and accept,this will bring a dilemma to new venture.This is the system of "legitimacy", well new ventures expected to promote enterprise growth through innovation, advanced behavior and bear the risk,they are also at risk of not being recognized and accepted by the market.Resulting in New Ventures dilemma Choice between in the entrepreneurial orientation strategy and organizational legitimacy.Therefore,there are not a simple correlation between entrepreneurial orientation and new venture growth,it needs a further exploration in contingency model,also need to be improved with new theories and perspectives.With the perspective of the legitimacy of institutional environment to study the relationship between entrepreneurial orientation and new venture growth, is the key to solve the contradiction above.First,This paper reviews the study of entrepreneurial orientation of the domestic and foreign scholars,defines the concept of entrepreneurial orientation and dimensions. Secondly,focuses on sorting out the relevant theory of organizational legitimacy, this paper argues that the legitimacy is the enterprise in order to obtain the recognition and support from key stakeholders, match the social value expectations, in order to obtain corporate visibility and reputation, thus bring enterprise the development resources. Then, on the basis of finishing source of legitimacy and means of access, select the consumer relationship strategy legitimacy and government relationship strategy legitimacy as the measure of the evaluation index of organizationallegitimacy, the two dimensions of the system environment divided into four kinds of situation, this paper discussed the relationship between entrepreneurial orientation and new venture growth in four different situations.In this paper, through the empirical analysis draws the following conclusion:entrepreneurial orientation dimensions positively promote the growth of new ventures;the consumer relationship strategy legitimacy and government relationship strategy legitimacy play regulatory role in the relationship between entrepreneurial orientation and new venture growth.Among them, in the high degree of consumer relationship strategy legitimacy and government relationship strategy legitimacy, the influence of entrepreneurial orientation to new venture growth are maximum; in the low degree of consumer relationship strategy legitimacy and government relationship strategy legitimacy, the influence of entrepreneurial orientation to new venture growth are larger;when the consumer relationship strategy legitimacy are high and government relationship strategy legitimacy are low,entrepreneurial orientation’s influence to new venture growth are minimum.