THE EFFECT OF ENTREPRENEURSHIP AND INNOVATION ORIENTATION IN COMPANIES ON COMPETITION STRATEGIES

Abstract

Companies need to discover new things and come up with new strategies in order to continue their activities and grow under competitive conditions. Therefore, they will be able to be a pioneer against their competitors by making innovative applications and strengthening their entrepreneurial activities. The aim of this study is to determine the effect of entrepreneurship and innovation orientation on competitive strategies for family businesses with the help of structural equation model (SEM). Family businesses constitute the oldest and most dominant form of business organization in the world. In many countries, family businesses represent more than eighty percent of overall businesses and play an important role in economic growth and employment of the workforce. From this point of view, analysis was carried out for 424 family businesses by random sampling method. Competitive strategies as a result of correlation analysis; 49.6% (r=0.496, p<0.01) with innovation orientation and 55.8% (r=0.558, p<0.01) with entrepreneurial orientation. According to the SEM estimation results; entrepreneurial orientation has a positive and significant effect on competitive strategies dimension (β=0.540, p<0.01). Innovation orientation has a significant positive effect on competitive strategies (β=0.421, p<0.01). Entrepreneurship orientation affects the dimension of competitive strategies the most, with innovation orientation being the second most effective.