From Market Reform to Innovation-Oriented Entrepreneurship: Ownership Structure as a Mediator in Korean Firms

Abstract This study examines how ownership structure mediates the relationship between market liberalization and firms’ innovation-oriented entrepreneurial orientation (EO) in post-crisis Korea. Integrating institutional and agency theories, we conceptualize ownership as a governance mechanism translating macro-level reform into firm-level strategic behavior. Using panel data on Korean technology-intensive firms from 1998 to 2003, we measure innovation-oriented EO through a patent-based technological exploration ratio and analyze the mediating roles of inside, outside, foreign ownership, and ownership competition. The results show that inside ownership exhibits a curvilinear relationship with EO, while outside ownership constrains innovation-oriented behavior. In contrast, foreign ownership and ownership competition do not play significant mediating roles. These findings clarify the governance conditions under which institutional reforms foster entrepreneurial strategy and offer insights for transitional and emerging economies.