The Impact of Entrepreneurship and Management Strategies on Organizational Performance Perceived by Members: Focused on SMEs

  • Kim, Moon Jun (KNU Corporate Management Institute, Kongju National University)
  • Received : 2019.12.28
  • Accepted : 2020.01.31
  • Published : 2020.03.31


The purpose of this study is to verify the relationship between the entrepreneurship and management strategy perceived by the members of SMEs and their organizational performance. First, as a result of the hypothesis that the entrepreneurship of one hypothesis had a significant influence on organizational performance, risk sensibility, progressiveness, and innovation, which are entrepreneurship, had a positive influence on both financial and non-financial performance. Second, as a result of verifying the influence relationship of the hypothesis two entrepreneurship on the management strategy, risk sensibility, progressiveness, and innovation, which are entrepreneurship, were statistically significant for the management strategy, cost advantage strategy, differentiation strategy, and centralization strategy. Therefore, in order to practice management strategy based on entrepreneurship, it was analyzed to influence mutual cohesion. Third, the management strategy showed a positive influence on organizational performance. In particular, only the centralization strategy, a type of SMEs' management strategy, confirmed the positive impact on the financial and non-financial performance. Therefore, the importance of entrepreneurship and management strategy has been emphasized in order for SMEs to create organizational performance through the advancement of sustainability management system.


  1. Druker, P. F. (1985), "Purposeful Innovation and the Seven Sources for Innovative Opportunity, In Innovation and Entrepreneurship: Practice and Principles", Chapter 2, New York: Harper and Row, 30-36.
  2. Schumpeter(2006), "Schumpeterian Entrepreneurship Revisited: Historical Specificity and the Phases of Capitalist Development", Journal of the History of Economic Thought, 28(3), 315-332. DOI:
  3. Sung-woo Kim and Hyuk-jin Koh (2017), "Direction of Entrepreneurship in the Fourth Industrial Revolution", Korean Institute of Entrepreneurship Study, 2, 96-105
  4. Grinstein, Amir (2006), "How resource challenges can improve firm innovation performance: Identifying coping strategies," Creativity and Innovation Management, 25(1), 110-128. DOI:
  5. Dae-Kil Song, Han-Won Shin and Young-Ro Choi(2009), "A Study on Relationship between Service Orientation, Employee Satisfaction, Customer Orientation and Business Performance of Liner Shipping Company", Korean Journal of Port Economics, 25(2), 25-56. URL:
  6. Li, Tiger and Roger J. Calantone(1988), "The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination," Journal of Marketing, 62(4), 13-29.
  7. Day, George S. (1994), "The Capabilities of Market-Driven Organizations," Journal of Marketing, 58(4), 37-52.
  8. Buchholz, R.A. and Rosenthal, S.B (2005), "Toward a Contemporary Conceptual Framework for Stakeholder Theory", Journal of Business Ethics, 58(1/3), 137-148. DOI:10.1007/s10551-005-1393-8.
  9. Lerner, D., Hunt, R., and Dimov, D. (2018). "Action! Moving Beyond the Intendedly-Rational Logics of Entrepreneurship", Journal of Business Venturing, 33(1), 52-69.
  10. Scott Shane and S. Venkataraman(2000), "The Promise of Entrepreneurship as a Field of Research", The Academy of Management Review, 25(1), 217-226. DOI: 10.2307/259271,
  11. Moon Jun Kim(2018), "A Study of the Entrepreneurship and Social Capital in Organizational Performance", International Journal of Advanced Culture Technology(IJACT), 6(4), 1-11 DOI:
  12. Lusi Suwandari, Yuyus Suryana, Yuyun Wirasasmitha and Sutisna Sutisna(2017), "Marketing Performance of Traditional Batik in Yogyakarta Based on Entrepreneurship Orientation and Environment Factors", Management and Economics Review, 2(2), 195-204
  13. Bourgeis, L. J.(1980), "Strategy and environment : A conceptual integration", Academy of Management Review,5,25-39.
  14. Gluck (1984), "Suppression Letters to the Editor of Clinical Signs of Infection by NSAlDs", Joural of the American Geriatrics Society, 32(9), 691-692
  15. N. R. Smith, J. B. Miner(1984), "Type of Entrepreneur, Type of Film, and Managerial Motivation: Implications for Organizational Life Cycle Theory", Strategic. Management Journal, 4, 325-340 DOI:
  16. Mintzburg & Quinn(1991), "Strategic orientation and top management attention to control systems", Strategic Management, 12, 49-62. DOI:
  17. Kim, ByoungJo, Dong-Sung Cho(2009), "Relational Assets, Interorganizational Mechanisms, and Alliance Performance of Venture Firms in Korea", Journal of Strategic Management, 12(1), 55-77. DOI : 10.17786/jsm.2009.12.1.003
  18. Porter, M. E.(1980), "Competitive Strategy : Techniques for Analyzing Industries and Competitors", New York : Free Press.
  19. G. Dess, P. S. Davis (1984), "Porter's (1980) generic strategies as determinants of strategic group membership and organizational performance," Academy of Management Journal, 27(3), 467-487, DOI:
  20. Seong Hwang Oh(2013), "Company's management strategy is organizational structure and manageability A Study on the Impact on the Family: Focusing on SMEs", Master's Thesis, Kyung Hee University
  21. Mintzberg(1990), "The design school: Reconsidering the basic premises of strategic management", Strategic management journal, 11, 171-195. DOI:
  22. Schein, E. (1988), Organisational Psychology, 3rd ed., Prentice Hall, Englewood Cliffs, NJ.
  23. Kaplan & Norton(1996), "Linking the Balanced Scorecard to Strategy", California Mnagement Review, 39(1), 53-79 DOI:
  24. Kaufmann & Todtling(2002), "How effective is innovation support for SMEs? An analysis of the region of Upper Austria", Technovation, 22(3), 147-159,
  25. V. Govindarajan, J. Fisher(1990), "Strategy, control systems, and resource sharing: effect on business-unit performance", Academy of Management Journal, 33(2),259-285, DOI:
  26. Moon Jun Kim(2019), "A Study on Management Competency Affecting Organizational Performance", International Journal of Advanced Culture Technology(IJACT), 7(2), 93-102 DOI:
  27. Petuskiene, Edita and Rasa Glinskiene(2011), "Entrepreneurship as the Basic Element for the Successful Employment of Benchmarking and Business Innovations,"Engineering Economics, 22(1), 69-77.
  28. Seung yeon Jeon(2018), "A Study on the Effects of SME Managers' Entrepreneurship and CEO Capabilities on Corporate Sustainability via Improved Management Performance", Ph.D. Thesis, Kyonggi University
  29. Cheng, B., Ioannou, I., and Serafeim, G. (2014). "Corporate social responsibility and access to finance", Strategic Management Journal, 35(1), 1-23.
  30. Becherer Richard C. and John G. Maurer(1999), "The Proactive Personality Disposition and Entrepreneurial Behavior among Small Company Presidents", Journal of Small Business Management, 37(1), 28-36.
  31. Lumpkin, G. Tom and Gregory G. Dess(1996), "Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance", Academy of Management Review, 21(1), 135-172
  32. Richard C. Dorf & Thomas H. Byers (2005), "Technology Ventures From Idea to Enterprise", Mc Graw Hill Higher Education
  33. Petuskiene, Edita and Rasa Glinskiene(2011), "Entrepreneurship as the Basic Element for the Successful Employment of Benchmarking and Business Innovations", Engineering Economics, 22(1), 69-77.
  34. Il-hwan Ryu(2019), "A Study on the Influence of Entrepreneurship on Management Innovation Capability of Organizational Members: Focusing on Moderating Effect of Orientation", Ph.D Thesis Kumho University of Technology
  35. Zahra, S.A. and Covin, J. (1995), "Contextual Influence on the Corporate entrepreneurship-Performance Relationship: A Longitudinal Analysis", Journal of Business Venturing,10, 43-58.
  36. In sook Kang(2003), "An Analysis on the Relationship between Structural Fitness and Performance in Hotel Industry", Cultural Tourism Research, 5(2), 207-228
  37. D. Miller, C. Droge(1987), "Strategy Making and Structure: Analysis and Implications for Performance", Academy of Management Journal, 30(1),7-32, DOI:
  38. Woodside, A.G., Sullivan, D.P., & Trappey, R.J. (1999). "Assessing relationships among strategic types, distinctive marketing competencies, and organizational performance", Journal of Business Research, 45, 135-146.
  39. Stephen B. Tallman(1991), "Strategic management models and resource-based strategies among mnes in a host market", Strategic Management Joural, 12(S1), 69-82,
  40. Ho Yeol Kwon, Young jin Cha(1997), "The Performance and its Determinants of Korean Firms Foreign Subsidiaries", Business Study, 26(3), 597-631,
  41. Young ho Kim(2017), "The organizational culture of Korean luxury hotels A Study on Management Performance", International Tourism Industry Association, 10(1), 7-36
  42. Bon Ki Ko( 2007), "Effect of Travel Agency's Competition Predominance Strategy on Management Performances', Tourism Study, 31(4), 93-114,