Impact of Entrepreneurial Orientation on New Firm Performance in China

Entrepreneurial orientation(EO) has been long recognized as a potentially viable means for achieving a high firm performance. Although a firm’s entrepreneurial processes may facilitate the pursuit of new entry opportunities that enhance its performance, adopting a strong entrepreneurial orientation is increasingly considered necessary but insufficient for wealth creation by new ventures. a better understanding of the conditions under which an entrepreneurial orientation enhances firm performance benefits the implementation of EO. Thus, this paper examines the impact of EO on new firm performance and the moderation effect of dynamic environment on the relationship between them. The empirical results from a sample of 384 new firms in China reveal several important findings. Innovative and proactive firm behaviors were positively associated with firm performance, while risk-taking displayed a U-shaped curvilinear relationship with performance under the background of chinese culture. Furthermore, the results indicate that dynamic environment moderate the relationship between three sub-dimension of EO and new firm performance.