Investigating the Impact of Entrepreneurial Orientation on Company Performance with Considering the Role of Sustainable Entrepreneurial Orientation and Its Consequences

Abstract

Purpose: Entrepreneurial orientation as a new phenomenon in the economy is in a wide range and in interaction with entrepreneurship. Therefore, the purpose of this research was investigating the impact of entrepreneurial orientation on company performance with considering the role of sustainable entrepreneurial orientation and its consequences. Methodology: This study in terms of purpose was applied and in terms of implementation method was cross-sectional from type of quantitative. The research population was the entrepreneurial managers of companies located in the scientific-research of Isfahan city in 2020 year with number 208 people, which all of them selected by census sampling method, but the questionnaire for 187 people was received. The research instrument was a researcher-made questionnaire with 38 items and seven components of innovation, pioneering, risk-taking, sustainable entrepreneurial orientation, creation and expansion of new markets, organization and effective use of resources and company performance, which whose validity was confirmed by the opinion of experts and their reliability was evaluated as suitable by Cronbach's alpha method. Data were analyzed with exploratory factor analysis and structural equation modeling methods in SPSS and Smart PLS software. Findings: The findings showed that the factor load and average variance extracted of all components of innovation, pioneering, risk-taking, sustainable entrepreneurial orientation, creation and expansion of new markets, organization and effective use of resources and company performance was higher than 0.50 and the reliability of all of them with Cronbach's alpha and combination methods was higher than 0.70. In addition, the model of entrepreneurial orientation on company performance with considering the role of sustainable entrepreneurial orientation and its consequences had a good fit. Also, the sustainable entrepreneurial orientation had a direct and significant effect on innovation, pioneering, risk-taking, creation and expansion of new markets, organization and effective use of resources and company performance and company performance had a direct and significant effect on creation and expansion of new markets and organization and effective use of resources (P<0.05). Conclusion: The findings of this research indicated that entrepreneurial orientation was effective on the company performance with considering the role of sustainable entrepreneurial orientation and its consequences.