The Impact of Entrepreneurial Orientation and External Oriented Organizational Culture on the Korean Manufacturing SMEs’ Performance: Focusing on the Mediation Effect of Open Innovation

Abstract

： This study examines the effects of entrepreneurial orientation and external oriented organizational culture on the firm perfornamance focusing on mediating effects of open innovation. The survey was conducted on Korean manufacturing firms with 100 – 5,000 employees among listed companies and external auditing companies. The validity of the research model and hypotheses was verified through analysis of structural equation model for 283 valid responses. Empirical results show that entrepreneurial orientation positively affects both open innovation and firm’s performance. The external oriented organizational culture of firms appears to be positive effects on open innovation, but the effect between the external oriented organizational culture and firm’s performance shows no statistical significance. Open innovation have positive effects on firm performance. In addition, a test for mediation effects of open innovation reveals that a full mediation exists between the external oriented organizational culture and firm’s performance, while there is a partial mediation effect between entrepreneurial orientation and firm’s performance. This study contribute to the literature by deepening understanding on the open innovation. We propose an integrated model for examining antecedent factors, open innovation and performance.