Being entrepreneurial and market driven: implications for company performance

Abstract

Purpose

The purpose of this paper is to examine empirically the interaction between entrepreneurial orientation (EO) and market orientation and its effect on performance in both high and low technology industries.

Design/methodology/approach

The paper proposes that being entrepreneurial and market‐driven stem from two distinct organizational capabilities that interact to influence subsequent firm performance.

Findings

Data from 457 manufacturing firms show that the interaction effect is significant only in high technology industries.

Research limitations/implications

The results encourage future research on the nexus of opportunity recognition and entrepreneurial behavior in established firms embedded in organizational routines.

Originality/value

The paper shows that managers in high technology industries would benefit from developing capabilities and implementing systems that augment their firms' market orientation. Market orientation provides an important means to harness the firm's EO, an important means of achieving growth and profitability.

Citation

Zahra, S.A. (2008), "Being entrepreneurial and market driven: implications for company performance", Journal of Strategy and Management, Vol. 1 No. 2, pp. 125-142. https://doi.org/10.1108/17554250810926339