- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
While many studies on the relationship between entrepreneurial orientation (EO) and firm performance suggested a considerable variation in size and direction of the relationship, our study tested a model that considered the drawbacks of a high EO. We identified that EO has a curvilinear relationship with firm performance and analyzed how the psychological safety of employees can mitigate the negative effects of high EO on firm performance. We tested our model on 157 enterprises comprising 1633 employees and 157 managers. After taking a longitudinal approach with objective financial outcome data, our results showed that EO has an inverted U-shaped effect in predicting firm performance and that employees’ psychological safety moderates the relationship between EO and firm performance, mitigating the negative effects. This study has theoretical implications related to the potential negative impact of excessive EO and practical implications for companies in mitigating this drawback by increasing employees’ psychological safety.
This study examined the drawbacks of high EO and the moderating role of psychological safety in the relationship between EO and firm performance. While recognizing the positive effects of EO on firm performance, this study also indicates the potential danger associated with an excessive EO and highlights how this drawback can be mitigated. Based on our empirical study involving a sample of 157 SMEs in South Korea, EO has an inverted U-shaped relationship with firm performance, and the psychological safety of employees can mitigate the negative effects of high EO on firm performance. To capitalize on entrepreneurial opportunities and create wealth, firms with high EO need to consider the employees’ psychological safety that moderates the relationship between EO and firm performance.