Entrepreneurial orientation of spin-offs created by university faculties and institute researchers in Korea

Abstract

This research focus on entrepreneurial orientation (EO) of technology spin-offs as they are expected to reduce the gap between their technology and the market. Entrepreneurial orientation is an organizational activity or process that redistributes or combines resources in an innovative way and takes risk to create new values. It helps improve the level of organizational innovation to deal with uncertainty. An empirical study was performed to analyze EO of spin-offs established by university faculty and Institute Researchers in Korea. Antecedent variables to EO are hypothesized to include public policy for university faculty and institute researchers, the relationship with incubating organization, and the level of social network with other firms. The relationship EO and technological performance are also hypothesized. Data from the total of 121 spin-off organizations were collected and a series of multiple regressions were performed. The performance variable included both technological performance such as the number of newly marketed products and new technology and subjective performance such as the level of satisfaction with sales amount and profitability. Several important conclusions were drawn from this study. First, university and institute's policy has a significant effect on the level of innovativeness, while government policy is not related to EO. Second, high percentage of man power from the incubating organization has a negative effect on risk taking. The level of cooperation with incubating organization also is not related to Entrepreneurial Orientation. Third, the intensity of the cooperative network with other firms has a significant effect on risk-taking. Network relationship with government related organizations is not related to Entrepreneurial Orientation. This study analyzed the importance and role of university and institute's policy and network with other firms to improve EO. It also suggested that a high composition of man power from the incubating organization has a negative relationship with EO.