Entrepreneurial passion and technological innovation: The mediating effect of entrepreneurial orientation

A thesis of the affective and emotional origins of entrepreneurial orientation and technological innovation is yet to emerge. This is highly unusual given the origins of a firm-level entrepreneurial orientation in the decision-making styles, methods, process and practices set by the upper echelons (the CEO) of the firm. This research aims to investigate the mediating effect of firm-level entrepreneurial orientation in the connection between the entrepreneurial passion of CEOs and technological innovation in SMEs. Using data collected through a structured survey questionnaire of privately-owned Chinese SMEs mostly operating in manufacturing industries, the findings show that firm-level entrepreneurial orientation significantly mediates the relationship between CEOs’ entrepreneurial passion and technological innovation. Our findings suggest that CEOs entrepreneurial passion indeed predicts firm-level entrepreneurial orientation, and CEOs passionate for entrepreneurship can realize increases in their firm’s technological innovation when they can first set in place a strategic posture and set of behaviors commensurate with entrepreneurial orientation.