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.
Bibliographical noteFunding Information:
The author acknowledges with appreciation the contributions of Gerry George to several earlier drafts of this article. An earlier version was presented at the Babson College Entrepreneurship Research Conference. He is grateful for the support of Nikos (the Dutch Institute for Knowledge Intensive Entrepreneurship) and the 3TU Professorship at the University of Twente, The Netherlands. Patricia H. Zahra’s comments are also appreciated.
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- Market driven production
- Market orientation
- Organizational performance