Owner Passion, Entrepreneurial Culture, and Financial Performance: A Study of New Zealand Entrepreneurs
Jarrod Haar, The University of Waikato
Alenna Taylor, The University of Waikato
Katie Wilson, The University of Waikato
Abstract: Despite the consistent positive findings of the influence of entrepreneurial culture on firm performance, there have been few empirical studies in New Zealand. Structural equation modelling was used to analyse data on entrepreneurial culture and owner passion provided by a sample of 146 business owners, as well as the same dimensions reported by a sample of 124 employees from the same firms. Owners also supplied data on financial performance. The prediction model showed that a passionate owner could enhance their firm’s entrepreneurial culture, and furthermore, this entrepreneurial culture was found to enhance the financial performance of the firm. The findings suggest the firms that focus on risk-taking behaviour, aligned with bold, wide-ranging strategic actions, and innovate so as to be a first mover with new products, are most likely to benefit from financial gains. The implications for research are discussed.