The relationship between entrepreneurial orientation and corporate performance: the mediating effects of product development speed and product quality

Abstract

This study analysed the effect of entrepreneurial orientation on the performance of SMEs (small and medium-sized enterprises). This study attempted to measure the mediating effects of product innovation performance between SMEs to identify the missing links between entrepreneurial orientation and the performance of SMEs. We also investigate the relationship between product development speed and product quality.A survey was administered to 1775 Korean SMEs, of which a total of 233 responses were used for the empirical analysis by applying a structural equation model.The empirical results show that entrepreneurial orientation has a positive effect on corporate performance, mediated by the product development speed and product quality. It was found that the product development speed had a positive effect on the product quality and that the path leading to the product development speed and product quality mediated the relationship between entrepreneurial orientation and corporate performance.

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