The relationship between entrepreneurial orientation and organizational performance: Evidence from the hotel industry in Canakkale Region

Abstract

It is aimed in this study to present the relationship between the entrepreneurial orientation (i.e. managerial methods, practices and decision-making styles in a business to make competitive conditions in its favor and to meet the strategic objectives), an antecedent of the corporate entrepreneurship (i.e. " all formal and informal activities to develop new products, services, technologies, strategies and administrative techniques) and financial / nonfinancial success in scope of organizational performance. With a literature review, an empirical study has been conducted on hotels businesses in Canakkale Region in Turkey with Pearson and Spearman Correlations as well as multiple linear regression analysis. The study reveals that there is a positive relationship between innovatiness and change in sales, net profit margin, and net profit level as well as between proactivity and change in sales, net profit margin, gross profit margin, net profit from operations and ability to fund growth. In addition, the competitive aggressiveness is in a similar relationship with change in sales, net profit margin, gross profit margin, and net profit level. Furthermore, the findings suggest that innovatiness and employee performance is positively related to each other as do proactivity, employee and customer performances in terms of nonfinancial performance.