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Entrepreneurial and market orientation relationship to performance

Author

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  • Zelimir William Todorovic
  • Jun Ma

Abstract

Purpose - First, this paper aims to examine the role culture plays on the relationship between entrepreneurial orientation (EO) and market orientation (MO) and its consequent impact on firm organizational performance. Second, the nature of the EO‐MO correlation itself and its effect on organizational performance is considered. Design/methodology/approach - Reviews of literature in EO and MO serve as a foundation of the development of conceptual arguments. Utilizing Hofstede's data, five countries with the lowest GDP and five countries with the highest GDP were plotted on a two dimensional plot to validate the findings. Findings - Entrepreneurial organizations in collectivist societies face lean resource environments. The effectiveness of strategic orientations (EO or MO) should not be assumed to be uniform. Research limitations/implications - This paper does not include empirical validation of the argument. Further empirical research should be done in different cultural contexts. Practical implications - There has been relatively little research that examines the relationship between strategic orientations, such as EO and MO, and their antecedents and consequences on organizational performance in different cultural contexts. This paper represents an attempt to do so from multicultural perspectives. Originality/value - This paper informs entrepreneurs of how their EO, MO, and their firms' performance are influenced by one cultural dimension: individualism/collectivism.

Suggested Citation

  • Zelimir William Todorovic & Jun Ma, 2008. "Entrepreneurial and market orientation relationship to performance," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 2(1), pages 21-36, March.
    • Handle: RePEc:eme:jecpps:v:2:y:2008:i:1:p:21-36
    DOI: 10.1108/17506200810861230
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    Citations

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    Cited by:

    1. Jimmy Ellya KURNIAWAN & Fendy SUHARIADI & Cholicul HADI, 2017. "The Impact Of School Corporate Cultures On Teachers Entrepreneurial Orientation. The Mediating Role Of Readiness For Change," Expert Journal of Business and Management, Sprint Investify, vol. 5(1), pages 22-31.
    2. Blankson, Charles & Iyer, Pramod & Owusu-Frimpong, Nana & Nwankwo, Sonny & Hinson, Robert, 2020. "Positioning strategies of foreign and indigenous firms in an African cultural milieu," Journal of Business Research, Elsevier, vol. 119(C), pages 627-638.
    3. Carlos Fernandez-Jardon & Xavier Martinez-Cobas & Fabian Martinez-Ortiz, 2020. "Technology and Culture in Subsistence Small Businesses," Sustainability, MDPI, vol. 12(22), pages 1-13, November.
    4. Brandon William Soltwisch, 2021. "When the Quest for the Best Pays Off: How Maximising Entrepreneurs Improve Performance by Creating Entrepreneurial and Market Oriented Businesses," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(2), pages 223-248, September.
    5. Athanasios Papadimitriou & Antonios Kargas, 2012. "The relationship between organizational culture and market orientation in the Greek telecommunication companies," Netnomics, Springer, vol. 13(1), pages 1-23, April.

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