Entrepreneurial orientation, market orientation and opportunity exploitation in driving business performance: moderating effect of interfunctional coordination
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 4 January 2022
Issue publication date: 27 April 2023
Abstract
Purpose
The study aims to investigate the extent to which interfunctional coordination (IFC) moderates the relationship between entrepreneurial orientation (EO), market orientation (MO) and organisational opportunity exploitation (OE) and business performance (BP); second, to examine the impact of EO, MO and organisational OE on the BP.
Design/methodology/approach
The study used a cross-sectional design approach, with the research framework tested on a sample of 203 cases of employees mostly at skilled, professional and management levels in Gauteng Province. Data was analysed through correlation, regression and moderation analysis.
Findings
The results indicated that EO, MO and OE account for BP. Furthermore, IFC significantly moderates only the relationship between MO and BP (financial) and OE and BP (non-financial). While the relationship between EO and BP is not significantly moderated.
Practical implications
The study highlights that IFC is not yet embedded in organisational practice and culture. Scaling interventions to promote IFC as a performance enabler, particularly in conjunction with the entrepreneurial, market-oriented and OE activities, is essential in the South African corporate entrepreneurial environment.
Originality/value
Although EO, MO and OE are widely recognised as performance enablers, very little is known about the potential moderating role of IFC towards these identified complementary strategic capabilities within the South African corporate context. The empirical research strengthens awareness about the need and criticality of IFC in improving organisational performance in emerging economies.
Keywords
Acknowledgements
Funding information: This research received no specific grant from any funding agencies or institutions.
Competing interests: The authors have declared that no competing interests exist.
Authors’ contributions: xxxx. conceptualised and conducted the study that was part of her master’s dissertation and xxx. was the supervisor who provided guidance and oversight of the study.
Citation
Mathafena, R.B. and Msimango-Galawe, J. (2023), "Entrepreneurial orientation, market orientation and opportunity exploitation in driving business performance: moderating effect of interfunctional coordination", Journal of Entrepreneurship in Emerging Economies, Vol. 15 No. 3, pp. 538-565. https://doi.org/10.1108/JEEE-03-2021-0114
Publisher
:Emerald Publishing Limited
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