Relationship between entrepreneurial orientation (EO)

and knowledge creation (KC)

GEA College, Faculty for entrepreneurship,

Slovenia

franc.vidic@gea-college.si

Franc Vidic PhD

• Goals

• Literature review

• Instrument

• Sampling

• Results

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Goals

• .. better understanding interaction between entrepreneurial orientation and knowledge creation processes impact on the company performance ....

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• Knowledge has to become the key economic resource and the dominant – and perhaps even the only –source of competitive advantage” (Drucker, 2009)

• Resource - based theory• Knowledge - based theory • Theory of dynamic firms capatibility

• The entrepreneurial society assumes the role of physical capital and entrepreneurial capital upgraded with a knowledge capital, economic growth, job creation and competitiveness in a complex environment (Audretsch, 2010)

Literature review

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EO, KC

• Entrepreneurial orientation is composed of processes, structures and habits (Lumpkin, Dess, 1996), contains the following dimensions: innovation, risk taking, proactiveness, competitive aggressiveness and autonomy (Miller, 1983; Covin, Slevin, 1991; Lumpkin, Dess, 1996).

• Knowledge creation – SECI process  (Nonaka, 1991, 1994, Nonaka, Takeuchi, 1995; Nonaka, Toyama, Konno, 2000; Lin, Lin, Huang, 2008): (1) socialization (from tacit knowledge to tacit knowledge); (2) externalization (from tacit knowledge to explicit knowledge); (3) combination (from explicit knowledge to explicit knowledge); and (4) internalisation (from explicit knowledge to tacit knowledge).

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EO KC

RT

CA

A

I

P

S

E

C

I

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Model

H1: Entrepreneurial orientation is five dimension process

H2: Knowledge creation process is four dimension process

H3: Entrepreneurial orientation is in correlation with knowledge creation process

Sampling (2010/11)

• Sample 2.500 organizations.• The envelope with the questionnaire was

equipped with a stamped envelope with printed return address in order to increase the response rate.

• Data were collected from entrepreneur or chief executive officer.

• Sixty questionnaires were returned to us unopened with 195 (7,8) usable questionnaires retained for analysis.

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Comparison between sent and returned questionnaires according to the number of full

and part-time employees 

Sent questionnaires Returned questionnaires

No. of employees Frequency Percentage

(%) Frekvenca Percentage

(%) 6–9 968 38,72 57 28,64 10–19 853 34,12 62 31,16 20–49 480 19,20 46 23,12 50–99 129 5,16 24 12,06 100–250 70 2,80 10 5,02 No answer 4 Cumulative 2500 203

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Methods• Descriptive analysis (kortsis, skevnes, standard

deviation)

• Keiser-Meyer-Olkin measure of sampling adequacy; Bartlett's test of sphericity, factors

• Exploratory factor analysis (maximum likelihood factoring)

• Confirmatory factor analysis

• Structural equation modeling

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KC

EO

0,78

RT

CA

A

I

P

I

C

E

S

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Structural equation modeling

• Chi sq. = 48,94 based on 26 degrees of freedom • Probability value for the Chi sq. statistic is 0.00420

FIT INDICES • CF I (comparative fit index) = 0.9 • RMSEA (root mean square error of approximation) = 0.11• 90% confidence interval of RMSEA (0.060, 0.154) • NFI (Bentler – Bonett normed fit index) = 0.91

RELIABILITY COEFFICIENTS• Crombach α = 0.880• Reliability coeficient RHO = 0.899

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Iteratively reweighted least squares solution (elliptical distribution theory).

It decomposition of effect with standardized values parameter effects

STANDARDIZED SOLUTION: R-SQUARED --------------------------------------------------------------------------------- PNPT =V132= 0.673*F1 + 0.739 E132 0.454 PNKA =V133= 0.528*F1 + 0.849 E133 0.279 PNA =V134= 0.477*F1 + 0.879 E134 0.228 PNI =V135= 0.817*F1 + 0.577 E135 0.668 PNP =V136= 0.855*F1 + 0.518 E136 0.731 KZS =V144= 0.758 F2 + 0.652 E144 0.574 KZE =V145= 0.793*F2 + 0.609 E145 0.629 KZK =V146= 0.840*F2 + 0.542 E146 0.706 KZI =V147= 0.715*F2 + 0.699 E147 0.512

Notes: F1 - EO with sub-dimensions: PNT - risk-taking, PNKA - competitive aggressiveness, PNA - autonomy, PNI - innovation, PNP – proaktivity; F2 – KC with sub-dimensions: KZS - socialization, KZE - externalization, KZC - combination KZI – internalisation

• Hypothesis H1: Entrepreneurial orientation is five dimension process

• Hypothesis H2: Knowledge creation process iz four dimension process

• Hypothesis 3: Entrepreneurial orientation will be in correlation with knowledge creation process

SUPORTED

SUPORTED

SUPORTED

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Conclusion

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