Exploring the Relationship Between Entrepreneurial Orientation, Innovation and Financial Performance: The Mediating Role of Absorptive Capacity and Technological Innovation Capability


  • Sirinthra Sungthong Faculty of Management Sciences, Phuket Rajabhat University
  • Somnuk Aujirapongpan School of Management, Walailak University
  • Kanokwan Meesook School of Accountancy and Finance, Walailak University


DOI: 10.59865/abacj.2023.49
Published: 2023-09-07


Entrepreneurship; Innovation Management; Technological Innovation Capability; Absorptive Capacity; Financial Performance; Performance Management


The purpose of this research was to study the relationship between entrepreneurial orientation, innovation and financial performance, through the mediating role of absorptive capacity and technological innovation capability. The study used a quantitative research method to collect data via questionnaire from the executive officers of 156 startup organizations in Thailand. Respondents were selected using a simple random sampling method and Structural Equation Modeling (SEM). The results demonstrate that entrepreneurship orientation is a variable directly and significantly correlated with innovation and financial performance. However, it was found that entrepreneurship orientation does not correlate indirectly with innovation or financial performance via the mediation of absorptive capacity and technological innovation capacity. The results of the study can enable startup businesses in Thailand to create and pay attention to the behavior of entrepreneurship orientation to improve the organization’s innovation and financial performance.