Strategic orientation, innovation, and the effects of entrepreneurial support mechanism in SMEs in South Korea: an application of subject-mechanism-performance congruence model

ABSTRACT

This study investigates the causal relationships among strategic orientation, innovation, and entrepreneurial support mechanisms. Strategic orientation is significant for innovation, and support mechanisms are organizational processes that mediate the innovation generating path. This study hypothesizes that the support mechanism consists of Culture, Structure, Reward, and Procedure and advances the existing theory, exemplifying an SMP (subject-mechanism-performance) framework based on empirical data collected through a national survey for 3,085 SMEs in South Korea. The findings suggest that strategic orientation affects innovation, and tangible interventions such as Procedure, Reward, and Structure might be differently applied from Culture to nurture innovative outcomes of SMEs.

KEYWORDS:

• Change management
• congruence model
• entrepreneurial support mechanism innovation
• strategic orientation
• subject-mechanism-performance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.