Effects of shared vision and integrations on entrepreneurial performance

Abstract

Purpose – This paper aims to examine the possible benefits and effects of shared vision and integration on entrepreneurial management for new Chinese ventures. By examining new enterprises, rather than already established and operating firms, this study can better demonstrate the impact of shared vision and internal or external integration on entrepreneurial performance. The empirical analyses demonstrate the importance of shared vision and both types of integration for new ventures, particularly enterprises in China. Design/methodology/approach – This study collected data from firms in Greater China, including China, Taiwan and Hong Kong. Five hypotheses were tested, for which the total sample size was 246 respondents. Confirmatory factor analysis and structural equation modeling were applied for statistical analyses. Findings – The results indicate that entrepreneurial vision correlates positively with shared vision. In its turn, shared vision correlates positively with internal integration and external integration. Furthermore, internal integration correlates positively with entrepreneurial performance. Although external integration is essential during new enterprise establishment, analytical results indicate that external integration is not strongly correlated with entrepreneurial performance. Practical implications – Shared vision plays a critical role in the integration process during the establishment of new enterprises. The results of this study show that newly established firms need to put more efforts than do operating firms into integrating external resources. Originality – / value This study contributes to a better understanding of the effects of shared vision and the different kinds of integration on entrepreneurial management. Knowing the driving forces behind these phenomena may help new firms to engage more actively in resources integration and enhance their entrepreneurial performance.