Entrepreneurial Orientation, Organizational Learning, Social Capital and Performances in Korean SMEs

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Entrepreneurial orientation has been considered to be a major factor that contributes to firms`` performances. Therefore, there have been many previous researches on the relationship between entrepreneurial orientation and firms`` performances. However, entrepreneurial orientation is managerial attitude that gives a firm a basis for strategic decisions and it should be differentiated from entrepreneurial actions. In this regard, it is necessary to understand the process on how entrepreneurial orientation contributes to firms`` performance. Hence, this study intends to examine which process mediates entrepreneurial orientation and firms`` performance from the perspective of organizational learning. We also try to discuss which factor moderates the relationship between organizational learning and firms`` performance. Particularly, we focus on internal factors of firms as moderating variables because small and medium enterprises often depends on internal resources and capability in the organizational learning process. So, we discuss internal social capital such as structural social capital and relational social capital as moderating variables. The empirical analysis shows that organizational learning mediate the relationship between entrepreneurial orientation and firms`` performance. It implies that entrepreneurial orientation has no direct impact on performances but impacts on firms`` performance through organizational learning. Entrepreneurial orientation can be implemented and integrated during the process of organizational learning. Firms can also transfer entrepreneurial orientation into action and create new knowledge by the process. So, the performance of a firm depends on how it implements organizational learning actively. Hence, it is recommended that firms focus how to encourage organizational learning as well as how to raise entrepreneurial orientation for their growth and better performance. Specifically, small and medium enterprises whose resources and capabilities are limited need to commit their resources and capabilities to organizational learning for their performance. Next, in terms of the moderating effect of internal social capital, the results show structural social capital which means the pattern of networks between employees and divisions has no significant effect on the relationship between organizational learning and firms`` performance, while relational social capital which includes network strength and trust between employees and divisions has positive impact on the relationship. This result implies that neither the number of employees who attend meeting and internal relationship nor the number of meeting has no impact on the relationship between organizational learning and firms`` performance. On the other hand, relational social capital that includes strong bond and trust between employees showed a positive impact on the relationship between organizational learning and performance. Therefore, the higher relational social capital, it facilitate the relationship between organizational learning and performance. Hence, firms are recommended to focus on strengthen the quality of intra-organizational relationship and trust between employees rather than on increase the number of meeting and employees who attend intra-organizational relationship for better performance from organizational learning