How corporate entrepreneurship affects the performance of small and medium-sized enterprises in Korea: The mediating and moderating role of vision, strategy, and employee compensation

Abstract

Objective: The objective of the article is to provide implications for improving the competitiveness of SMEs by analysing the structural impact relationship of the corporate entrepreneurship of Korean SMEs on business performance. Research Design & Methods: The established research model based on precedent studies was empirically analysed with PLS-SEM by employing the 3299 survey data collected by the Ministry of SMEs and Start-ups in 2018. Findings: Empirical analysis revealed that corporate entrepreneurship affects business performance through a relationship between moderation (employee compensation) and mediation (vision and strategy). Hence, the findings suggest that, along with the importance of corporate entrepreneurship, the proper management of vision and strategy and employee compensation has a significant influence on the business performance of SMEs. Implications & Recommendations: The implications of this research are expected to be applied by the government in establishing policy direction to enhance the corporate entrepreneurship of SMEs in the future. Contribution & Value Added: This study provides empirical evidence that shows the relationship between corporate entrepreneurship and business performance by using the data of Korean SMEs. In particular, it incorporated the effects of vision and strategy, and employee compensation and rendered theoretical and managerial implications.