Do Entrepreneurial Competencies Impact Competitive Agility and Entrepreneurial Satisfaction? Evidence from Startups in South Korea

Abstract

This study examines the effects of entrepreneurial competencies on competitive agility and entrepreneurial satisfaction of startups in a hypercompetitive Korean business environment. The study adopts a framework based on a resource-based view of the resources, capabilities and processes shaping a startup performance, considering vital drivers such as information technology competency, opportunity competency and competitive agility. It highlights that entrepreneurial success should not be solely limited to financial indicators, as entrepreneurial satisfaction of young startups is also crucial. A structural equation model was employed to analyze data from 638 South Korean startups that received government support. The results show that there is a positive relationship between information technology and opportunity competency on competitive agility. Information technology competency has a positive effect on opportunity competency. Further, competitive agility and opportunity competency have a positive effect on entrepreneurial satisfaction. Additionally, competitive agility mediates the positive relationship between opportunity competency and entrepreneurial satisfaction. The study concludes that, to be successful, startups need to align their entrepreneurial competencies in an agile manner to scan the market environment, seize business opportunities and transform capabilities into actions for improved entrepreneurial satisfaction outcomes. In summary, we suggest that small and mid-size startups can improve their entrepreneurial satisfaction outcomes by linking entrepreneurial competencies with entrepreneurial action process and competitive agility.