The relationship between entrepeneurial management and financial performance: Evidence from the hotel industry in Çanakkale Region
It is aimed in this study to present the relationship between the entrepreneurial management (i.e. the management philosophy of an organization's overall internal management systems and organizational processes encouraging strategic agility, flexibility, creativity and continuous innovation, which lets the organization follow a selected marketing strategy and play the ‘game' better than its competitors/dictates its ‘game') and financial performance. With a literature review, an empirical study has been conducted on hotel businesses in Çanakkale Region in Turkey with Pearson and Spearman Correlations as well as multiple linear regressions to present the relationships between entrepreneurial management, which aims to stimulate all individuals, regardless of their hierarchial levels, in an organization to think and act like entrepreneurs to achieve above-average returns in the long run, and financial performance. The study reveals that there is a positive relationship between strategic orientation with satisfaction of overall financial performance, ROE and change in assets; resource orientation with satisfaction of overall financial performance and ROE; reward system with satisfaction of overall financial performance, ROI, change in sales, net profit margin, net profit level, net profit from operations and ability to fund growth as well as entrepreneurial culture with ROI and change in sales. Furthermore, the findings suggest that growth orientation is the most important variable to contribute the financial performance.