Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Region, Vietnam

Abstract

In the COVID-19 pandemic phase, entrepreneurial financial support and entrepreneurial culture play a major part in stimulating entrepreneurship. However, it is still unclear how entrepreneurial financial support and entrepreneurial culture affect organizational creativity and firm innovation, and whether they enhance new venture performance. To answer these timely inquiries, this study adopted the resource-based view (RBV) theory to investigate the influences of entrepreneurial financial support and entrepreneurial culture on new venture performance through organizational creativity and firm innovation. Based on 315 responses collected from the entrepreneurs of new ventures operating in the Ho Chi Minh City region, Vietnam, a quantitative approach and the partial least squares structural equation modeling (PLS-SEM) were employed for data analysis. The findings illustrated that all the proposed hypotheses were completely supported, except the effect of entrepreneurial financial support on new venture performance through organizational creativity. Moreover, firm innovation had the strongest direct effect on new venture performance, while organizational creativity and firm innovation partially mediated associations between entrepreneurial financial support, entrepreneurial culture, and new venture performance. Therefore, this study solved existing debates in the literature, while developing the resource-based view (RBV) theory in the context of entrepreneurship. In the post-COVID-19 epidemic stage, it provides a new understanding for administrators and other participants to create and promote effective financial support systems and national cultures which stimulate entrepreneurship, concurrently offering new ventures with rational approaches to utilize those external resources to develop their organizational creativity and firm innovation for improving their performance.