Relationship between entrepreneurial orientation (EO) and knowledge creation (KC)

1. Relationship between entrepreneurial orientation (EO) and knowledge creation (KC) GEA College, Faculty for entrepreneurship, Slovenia franc.vidic@gea-college.si Franc Vidic PhD

2. Goals • Literature review • Instrument • Sampling • Results Vidic, 2012

3. Goals • .. better understanding interaction between entrepreneurial orientation and knowledge creation processes impact on the company performance .... Vidic, 2012

4. Literature review • Knowledge has to become the key economic resource and the dominant – and perhaps even the only –source of competitive advantage” (Drucker, 2009) • Resource - based theory • Knowledge-based theory • Theory of dynamic firms capatibility • The entrepreneurial society assumes the role of physical capital and entrepreneurial capital upgraded with a knowledge capital, economic growth, job creation and competitiveness in a complex environment (Audretsch, 2010) Vidic, 2012

5. EO, KC • Entrepreneurial orientation is composed of processes, structures and habits (Lumpkin, Dess, 1996), contains the following dimensions: innovation, risk taking, proactiveness, competitive aggressiveness and autonomy (Miller, 1983; Covin, Slevin, 1991; Lumpkin, Dess, 1996). • Knowledge creation – SECI process (Nonaka, 1991, 1994, Nonaka, Takeuchi, 1995; Nonaka, Toyama, Konno, 2000; Lin, Lin, Huang, 2008): (1) socialization (from tacit knowledge to tacit knowledge); (2) externalization (from tacit knowledge to explicit knowledge); (3) combination (from explicit knowledge to explicit knowledge); and (4) internalisation (from explicit knowledge to tacit knowledge). Vidic, 2012

6. Model RT S CA E EO KC A C I I P H1: Entrepreneurial orientation is five dimension process H2: Knowledge creation process is four dimension process H3: Entrepreneurial orientation is in correlation with knowledge creation process Vidic, 2012

7. Sampling (2010/11) • Sample 2.500 organizations. • The envelope with the questionnaire was equipped with a stamped envelope with printed return address in order to increase the response rate. • Data were collected from entrepreneur or chief executive officer. • Sixty questionnaires were returned to us unopened with 195 (7,8) usable questionnaires retained for analysis. Vidic, 2012

8. Comparison between sent and returned questionnaires according to the number of full and part-time employees Vidic, 2012

9. Methods • Descriptive analysis (kortsis, skevnes, standard deviation) • Keiser-Meyer-Olkin measure of sampling adequacy;Bartlett's test of sphericity, factors • Exploratory factoranalysis (maximum likelihood factoring) • Confirmatory factor analysis • Structural equation modeling Vidic, 2012

10. RT Structural equation modeling CA EO A I P 0,78 S E KC C I Vidic, 2012

11. Chi sq. = 48,94 based on 26 degrees of freedom • Probability value for the Chi sq.statistic is 0.00420 FIT INDICES • CFI (comparative fit index) = 0.9 • RMSEA (root mean square error of approximation) = 0.11 • 90% confidence interval of RMSEA (0.060, 0.154) • NFI (Bentler – Bonett normed fit index)= 0.91 RELIABILITY COEFFICIENTS • Crombach α= 0.880 • Reliability coeficient RHO = 0.899 Vidic, 2012

12. Iteratively reweighted least squares solution (elliptical distribution theory). It decomposition of effect with standardized values parameter effects Notes: F1 - EO with sub-dimensions: PNT - risk-taking, PNKA - competitive aggressiveness, PNA - autonomy, PNI - innovation, PNP – proaktivity; F2 – KC with sub-dimensions: KZS - socialization, KZE - externalization, KZC - combination KZI – internalisation

13. Hypothesis H1: Entrepreneurial orientation is five dimension process • Hypothesis H2: Knowledge creation process iz four dimension process • Hypothesis 3: Entrepreneurial orientation will be in correlation with knowledge creation process SUPORTED SUPORTED SUPORTED Vidic, 2012

14. Conclusion Vidic, 2012