The mediating roles of differentiation strategy and learning orientation in the relationship
between entrepreneurial orientation and firm performance
Authors: Chih-Yuan Chen, Hui-Hui Huang, Shyh-Chyi Wey
Journal:Corporate Management Review. Jun. 2017, 37(1): 1-40.
Keywords: Entrepreneurial orientation; differentiation strategy;
learning orientation; firm performance; a multiple mediating model.
Abstract:
Differentiation strategy and learning orientation are both important for entrepreneurial firms,
but differ in their paths to improve entrepreneurial performance. Nonetheless, to the best of our knowledge,
the differentiation strategy that mediates the relationship between entrepreneurial orientation and firm
performance has not been thoroughly investigated in the literature. In addition, the mediating effect of
learning orientation on the entrepreneurial orientation-performance relationship remains unclear. Therefore,
this study constructs a multiple mediating model to comprehensively examine how entrepreneurial performance
influences multiple firm performance measures (growth performance and profitability performance) through the
mediating variables of differentiation strategy and learning orientation. This study focuses on firms in a
component supply network in the automotive industry. Structural equation modelling (SEM) analysis and tests
on multiple mediating effects indicate that, through the mediating effect of differentiation strategy,
entrepreneurial performance increases growth performance. Moreover, through the mediating effect of learning
orientation, entrepreneurial performance enhances profitability performance. The research results reveal that,
in terms of the mediating effect, differentiation strategy and learning orientation can complement each other
in order to raise growth performance and profitability performance, respectively.