Suggestions for future research

(1) Entrepreneurial orientation research on firms in supply networks or the B2B market is seldom addressed in the literature. This study has focused on firms in the automotive component supply network. A survey of supply network firms in different industries may obtain different results since industry type can possibly influence the entrepreneurial orientation-performance relationship (Rauch et al., 2009). Therefore, comparative studies of supply networks in different industries in the future would prove worthwhile in achieving generalizability of research results. Additionally, it would also be worthwhile to initiate comparative studies between firms in supply networks (i.e., the B2B market) and firms in B2C market.

(2) The analysis result of this study demonstrates that the two mediating variables of learning orientation and differentiation strategy are complementary in strengthening the competitive advantage and performance of a firm. Future research can investigate some other potential mediating variables. Based on the resource-based approach (Barney, 1991), some empirical works reveal that internal strategic resources are the key to a firm’s competitive advantage, thereby determining firm performance (e.g., Han, Chao, and Chuang, 2012; Shyu, 2014).

Internal strategic resources may thus be the promising variables that affect the entrepreneurial orientation-firm performance nexus and worth further investigating. In addition, according to research findings of Chen, Chu and Huang (2012), the business model adopted by a firm can influence performance during its innovation process. Therefore, we suggest that the business model could be a potential variable that affects the entrepreneurial orientation-performance relationship. Furthermore, integrating research results for mediating variables with previous findings for moderating variables may produce a model that combines moderating and mediating variables. This combined approach may help in the development of a more comprehensive theoretical entrepreneurial orientation model.

(3) Based on the discovery of multiple dimensions of a firm’s financial performance (in terms of profitability and growth performance), future research can enter financial and non-financial dimensions of performance into the model in order to understand the relationships among entrepreneurial orientation,

mediating variables, financial performance, and non-financial performance.

Specifically, Chang and Fu (2011) pointed out that financial performance measures generally reflect past performance and cannot completely reflect the expected future consequences of current actions in a timely manner, while non-financial performance measures can provide information about management actions that lead to future long-term performance. Therefore, non-financial performance measures may be regarded as the leading indicators of future financial performance. Some variables measuring non-financial performance - such as overall firm performance measured against firm goals and objectives (Lumpkin and Dess, 1996), customer satisfaction and speed in developing new products (Stam and Elfring, 2008), product quality, innovation productivity and operation efficiency (Chang and Fu, 2011), reputation, product competitiveness, and customer loyalty (Han, Chao, and Chuang, 2012), and enhanced opportunities that are especially important for service firms (Yang, Wang, and Ruan, 2013) - are possible performance measures that can be examined.

Corporate Management Review Vol. 37 No. 1, 2017 33 Appendix Dimension and measurement items Construct DimensionItem (code and statement) Entrepreneurial orientation (EO) Innovativeness (IN)

IN1Our firm introduced many new lines of products or services in the past 3 years. IN2Changes in product or service lines in our firm have usually been quite dramatic. IN3In our firm, there exists a very strong emphasis on R&D, technological leadership, and innovations. Proactiveness (PR)

PR1In dealing with competitors, our firm usually initiates actions that competitors then respond to. PR2In general, the top managers of our firm have a strong tendency to be ahead of others in introducing novel ideas or products. PR3In dealing with competitors, our firm is very often the first business to introduce new products/services, administrative techniques, operating technologies, etc. Risk-taking (RIS)

RIS1When confronted with decisions involving uncertainty, our firm typically adopts a bold posture in order to maximize the probability of exploiting opportunities. RIS2The top managers of our firm believe that, owing to the nature of the environment, bold, wide-ranging acts are necessary to achieve the firm’s objectives. RIS3Our firm usually has a strong proclivity for supporting high-risk projects (with chances of very high returns). Learning orientation (LO)

Shared vision (SV)

SV1There is a total agreement on our unit vision across all levels, functions, and divisions. SV2Employees view themselves as partners in charting the direction of the organization. SV3All employees are committed to the goals of the organization. SV4Top leadership believes in sharing its vision for the organization with the lower levels. Open- mindedness (OM)

OM1Managers encourage employees to “think outside of the box.” OM2Our organization places a high value on open-mindedness. OM3An emphasis on constant innovation is not a part of our corporate culture.† OM4Managers in our organization do not want their “view of the world” to be questioned.† Commitment to learning (CL) CL1Managers basically agree that our organization’s ability to learn is the key to our competitive advantage. CL2The basic values of the organization include learning as the key to improvement. CL3The sense around here is that employee learning is an investment, not an expense. CL4Learning in our organization is seen as a key commodity necessary to guarantee organizational survival.

34 The mediating roles ofdifferentiationstrategyand learning orientation in the relationship between entrepreneurial orientation and firm performance Dimension and measurement items (continued) Construct DimensionItem (code and statement) Differentiation strategy (DS)

Innovative differentiation (ID)

ID1It is difficult for competitors to imitate our firm’s manufacturing processes. ID2In comparison to our main competitors, our firm can easily develop differentiation using our own technologies. ID3It is difficult for competitors to imitate our firm’s products. Marketing differentiation (MD) MD1Our firm’s products (services) are important for our customers’ differentiation. strategy. MD2Differentiation is important in our customers’ decision making. MD3Our firm’s product policy emphasizes (1) originality, (2) quality, and (3) innovation. Firm performance (FP)

Growth performance (GP)

GP1Our firm’s market share. GP2Our firm’s sales growth. Profitability performance (PP) PP1Our firm’s operating profit margin. PP2Our firm’s return on assets. PP3Our firm’s return on investment. † Reverse coded items.

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