A theoretical and empirical research on the mediating effect of internal entrepreneurial environment

Abstract

Purpose

The purpose of this paper is to explore the mediating effect of internal entrepreneurial environment (IEE) between entrepreneurial orientation (EO) and organizational performance.

Design/methodology/approach

The research is conducted using an original data set of 185 in China. The mediator measurement steps recommended by Baron and Kenny to test the mediating effects are applied.

Findings

The proposition that EO can lead to the improvement of organizational performance is only partially confirmed in this paper; IEE is the mediating variable between innovation‐proactive and organizational performance, but the dimension of risk‐taking is not verified.

Research limitations/implications

As far as the IEE measurement scale is concerned, its simplicity is achieved at the cost of accuracy. Future research may adopt more complex scale design to further verify the relationship among the different sub‐dimensions of IEE, as well as the correlation and causality between those dimensions and organizational performance.

Originality/value

The complex relationship between EO and organizational performance requires further study of the contingency and construction of third‐party variables. This research confirms that building IEE is an important path for transforming EO into organizational performance.

Citation

Li, Q. and Zhang, Z. (2010), "A theoretical and empirical research on the mediating effect of internal entrepreneurial environment", Journal of Chinese Entrepreneurship, Vol. 2 No. 1, pp. 5-18. https://doi.org/10.1108/17561391011018998