Analysis on Moderator Effect of Environmental Factors in The Relationships Among Entrepreneurial Orientation, Innovation Capacity and Financial Performance

Abstract

The aim of the study is to conduct research on the moderator effects of environmental factors on the relationships among entrepreneurial orientation, innovation capacity, and financial performance. From this perspective, the main objective of the levels of the study is to investigate the relationship of the dimensions of entrepreneurial orientation; “innovation, proactivity and risk-taking” with innovation capacity and financial performance, and to reveal the moderator effects of environmental dynamism and environmental competition on these relationships. The population of the research for this purpose is constituted by Türkiye’s production centers in Istanbul and Kocaeli regions. The sample of the study, however, consists of 210 executives of the companies with an R&D center and 50 or more employees determined by the judgmental sampling method. The survey questionnaire technique is used to obtain the data due to its superior data analysis features. The structural equation model was used to test the framed hypotheses. Both SPSS and SmartPLS3 software are utilized in the analysis of the data obtained collected by courtesy of the survey questionnaires. According to the analysis results; it is determined that entrepreneurial orientation has an effect on the innovation capacity. Nevertheless, no significant effects of entrepreneurial orientation and innovation capacity on financial performance are detected. It is asserted that the moderator effects of environmental factors on the relationship among entrepreneurial orientation, innovation capacity, and financial performance, which constitute the main objective of the study, are not statistically significant.