Effect of Entrepreneurial Orientation on Corporate Sustainability Performance: Mediating Role of Differentiation and the Knowledge Integration Capability of Community Enterprises
Article Sidebar
Main Article Content
Abstract
This research aims to develop a structural equation modeling that explains effect of entrepreneurial orientation on corporate sustainability performance: the mediating role of the differentiation and the knowledge integration capability. The sampling was done by multi-stages level and stratified sampling using proportions and specific selection from 384 community enterprises in the three southern border provinces. The data were analyzed through the structural equation model that it fits the empirical data at a good level ( 2 = 189.09, df = 71, RMSEA = 0.066, SRMR = 0.011, CFI = 0.95). The result showed that the entrepreneurial orientation had a positive direct effect on the differentiation strategy and knowledge integration capability with statistical significance at the level of 0.01 and coefficient was 0.96 and 0.91 respectively. In addition, the entrepreneurial orientation had an indirect influence on corporate sustainability performance through the knowledge integration capability that the influence coefficient is equal to 0.70
Article Details
The Editorial Board claims a right to review and correct all articles submitted for publishing
References
Atalaya, M., N. Anafarta and F. Sarvanc. 2013. Understanding the relationship between stakeholder pressure and sustainability performance in manufacturing firms in Pakistan. Procedia - Social and Behavioral Sciences 75: 226–235.
Boonsawang, A., J. Buakaew and V. Rungreunganun. 2018. The study of entrepreneurs demand issues for products and packaging development in 5 southern border provinces. Pp.11-20. In: Proceeding of the First National Conference on Humanities and Social Sciences: Wisdom Power For Sustainable Development at Songkhla Rajabhat University, Songkhla. (in Thai)
Cantele, S. and A. Zardini. 2018. Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability - financial performance relationship. Journal of Cleaner Production 182: 166-176.
Cui, L., D. Fan, F. Guo and Y. Fan. 2018. Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market. Industrial Marketing Management 71: 27-40.
Courrent, J.M., S. Chasse and W. Omri. 2018. Do entrepreneurial SMEs perform better because they are more responsible? Journal of Business Ethics 153(2): 317–336.
Donkwa, K. 2013. Macroeconomics 1. 2nd ed. Charansanitwong, Bangkok.
Elkington, J. and J. Zeitz. 2014. The Break-Through Challenge: 10 Ways to Connect Today’s Profits with Tomorrow’s Bottom Line. Jossey- Bass, San Francisco, CA.
Fitzsimmons, J.A. and M.J. Fitzsimmons. 2004. Service Management: Operations, Strategy, and Information Technology. 4th ed. McGraw-Hill, New York.
Ha, S.T., M.C. Lo and Y.C. Wang. 2016. Relationship between knowledge management and organizational performance: A test on SMEs in Malaysia. Procedia - Social and Behavioral Sciences 224: 184 – 189.
Hair, J.F., W.C. Black, B.J. Babin, and R.E. Anderson. 2010. Multivariate Data Analysis A Global Perspective. 7th ed. Pearson education Inc, New Jersey
Ivanov, C.I. and S. Avasilcăi. 2014. Measuring the performance of innovation processes: A balanced scorecard perspective. Procedia - Social and Behavioral Sciences 109: 1190–1193.
Jiang, W., H. Chai, J. Shao and T. Feng. 2018. Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production 198: 1311-1323.
Josien, L. 2012. Entrepreneurial orientation: An empirical study of the risk-propensity dimension of entrepreneurs. Academy of Entrepreneurship Journal 8(1): 21-34.
Kaplan, R. S. and D.V. Norton. 1996. Strategic learning and the balanced scorecard. Strategy and Leadership 24(5): 18-24.
Kim, Y.J. and G.L. Sanders. 2002. Strategic actions in information technology investment based on real option theory. Decision Support Systems 33(1): 1–11.
Kim, Y.J., S. Song, V. Sambamurthy and Y.L. Lee. 2012. Entrepreneurship, knowledge integration capability, and firm performance: An empirical study. Information Systems Frontiers 14(5): 1047–1060.
Kline, R.B. 2011. Principles and Practice of Structural Equation Modeling. 3rd ed. The Guilford Press, New York.
Li, Y.H., J.W. Huang and M.T. Tsai. 2009. Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial Marketing Management 38(4): 440–449.
Mettathamrong, J., C. Phromket, and K. Vichasilp. 2019. Analysis of a confirmatory factor model of community enterprise management in Sakon Nakhon province to Thailand 4.0. Journal of Community Development and Life Quality 7(3): 249-260.
Mu, J., E. Thomas, G. Peng and A. Di Benedetto. 2017. Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management 64: 187–201.
Office of the National Economic and Social Development Council. 2019a. The twelfth national economic and social development plan. (Online). Available: https://www.nesdc.go.th/e wt_dl_link.php?nid=6422 (August 28, 2019) (in Thai)
Office of the National Economic and Social Development Council. 2019b. Gross regional and provincial product chain volume measures 2017 edition. (Online). Available: https://www.nesd c.go.th/ewt_dl_link.php?nid=5628&filename=gross_regional (August 29, 2019) (in Thai)
Porter, M.E. 2003. The economic performance of regions. Regional Studies 37(6-7): 549-578.
Prajogo, D.I. 2016. The relationship between competitive strategies and product quality. Industrial Management and Data Systems 107(1): 69–83.
Rovinelli, R.J. and R.K. Hambleton. 1977. On the use of content specialists in the assessment of criterion-referenced test item validity. Dutch Journal of Educational Research 2: 49-60.
Ryu, C., Y.J. Kim, A. Chaudhury and H.R. Rao. 2005. Knowledge acquisition via three learning processes in enterprise information portals: Learning-by-investment, learning-by-doing, and learning-from-others. MIS Quarterly 29(2): 245–278.
Salunke, S., J. Weerawardena and J.R. McColl-Kennedy. 2019. The central role of knowledge integration capability in service innovation-based competitive strategy. Industrial Marketing Management 76: 144-156.
Semuel, H., H. Siagian and S. Octavia. 2017. The effect of leadership and innovation on differentiation strategy and company performance. Procedia - Social and Behavioral Sciences 237: 1152–1159.
Wolff, J.A., T.L. Pett and J.K. Ring. 2015. Small firm growth as a function of both learning orientation and entrepreneurial orientation: An empirical analysis. International Journal of Entrepreneurial Behavior and Research 21(5): 709-730.
Zehir, C., E. Can and T. Karaboga. 2015. Linking entrepreneurial orientation to firm performance: The role of differentiation strategy and innovation performance. Procedia - Social and Behavioral Sciences 210: 358–367.
