Entrepreneurial Orientation as a Catalyst for ICVs Success: The Mediating Mechanism between Environmental Adaptability and Competitive Performance

Abstract

As environmental uncertainty increases, support for Internal Corporate Ventures (ICVs) is expanding across large conglomerates and small and medium-sized enterprises (SMEs), making Entrepreneurial Orientation (EO) a critical factor for maximizing innovation. Accordingly, this study empirically analyzes the impact of the external environment and EO on competitive performance among 328 firms operating ICVs, verifying the mediating role of EO. Results reveal that a higher EO significantly improves competitive performance. Specifically, a favorable external environment strengthens EO, with ‘improvement and innovation orientation’ and ‘proactive organizational support orientation’ emerging as key drivers for ICV success. Furthermore, EO mediates the relationship between external environmental favorability and competitive performance. This study provides empirical evidence that EO is a core strategic factor directly linked to ICV success, rather than a mere cultural element. Consequently, it highlights the necessity for firms to implement organizational support that reinforces EO and adopt flexible strategies responsive to environmental changes to effectively leverage ICVs.