The Relationship Between Entrepreneurial Orientation and Innovation Performance: The Moderating Role of Perceived Impact of Social Regulations (Facilitating vs. Inhibiting)

This study investigates the relationship between entrepreneurial orientation and innovation performance, with particular emphasis on the moderating influence of perceived impacts of social regulation—categorized as either facilitative or inhibitory to innovation. Using firm-level data from the 2020 Korea Innovation Survey (KIS) in the manufacturing sector, the analysis finds that entrepreneurial orientation positively and significantly drives both product innovation and business process innovation. Notably, the moderating effect of perceived social regulations varies by regulatory domain: environmental regulations are found to dampen the positive linkage between entrepreneurial orientation and product innovation, whereas consumer safety and hygiene regulations reinforce it. This study aims to propose important theoretical and practical significance for research in the field of entrepreneurial orientation, innovation performance, and social regulation by examining the impact of entrepreneurial orientation on product innovation and business process innovation and verifying the moderating effect of social regulation.