The Effect of Entrepreneurial Orientation on Business Model Innovation and Business Performance: The Moderating Effect of Organizational Culture

This study examines the impact of entrepreneurial orientation (innovativeness, proactiveness, and risk-taking) on business model innovation (BMI) and business performance in SMEs amid rapid technological advancements. A proposed model hypothesizes that BMI mediates the relationship between EO and business performance, with organizational culture acting as a moderator. Using 2,518 samples from the Korea Entrepreneurship Foundation (KoEF) survey, data were analyzed through structural equation modeling (SEM) with a component-based approach. The findings reveal that innovativeness and proactiveness significantly enhance BMI, while all three EO dimensions positively influence firm performance. BMI mediates the link between EO and performance, underscoring its importance as a strategic growth tool. Moreover, a dynamic organizational culture strengthens the positive effects of EO on BMI and performance. This study provides valuable insights for SMEs to leverage EO and organizational culture to drive innovation and achieve sustainable competitive advantages.