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Entrepreneurial orientation and firm performance in non-profit service organizations: contingent effect of market orientation

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  • Hsiang Ling Chen
  • Chun-Hui Hsu

Abstract

Prior research indicates that an inverted U-shaped relationship exists between entrepreneurial orientation (EO) and firm performance. This study argues that the inverted U-shaped relationship may depend on the level of market orientation (MO). A moderated hierarchical regression based on a sample of 307 non-profit service organizations reveals that an inverted U-shaped relationship exists between each sub-dimension of EO and performance. However, these relationships do not exist for each sub-dimension of MO. When both market intelligence generation and responsiveness are high, the relationship between innovativeness and performance will be in a linear form. Under the condition of high-market intelligence responsiveness, the higher proactiveness will lead to a higher performance level. These findings will better our understanding of the relationship between EO and firm performance.

Suggested Citation

  • Hsiang Ling Chen & Chun-Hui Hsu, 2013. "Entrepreneurial orientation and firm performance in non-profit service organizations: contingent effect of market orientation," The Service Industries Journal, Taylor & Francis Journals, vol. 33(5), pages 445-466, April.
    • Handle: RePEc:taf:servic:v:33:y:2013:i:5:p:445-466
    DOI: 10.1080/02642069.2011.622372
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    1. Louis Marino & Karen Strandholm & H. Kevin Steensma & K. Mark Weaver, 2002. "The Moderating Effect of National Culture on the Relationship between Entrepreneurial Orientation and Strategic Alliance Portfolio Extensiveness," Entrepreneurship Theory and Practice, , vol. 26(4), pages 145-160, July.
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    1. Francisco Adro & Cristina I. Fernandes & Pedro M. Veiga & Sascha Kraus, 2021. "Social entrepreneurship orientation and performance in non-profit organizations," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1591-1618, December.
    2. Rozélia Laurett & Arminda Maria Finisterra Paço & Anabela Rosario Leitão Dinis, 2020. "Entrepreneurship in nonprofit organizations: a systematic review of the literature," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 17(2), pages 159-181, June.
    3. Andrea Buratti & Giancarlo Ferrero, 2017. "Empirical evidence of Entrepreneurial Marketing Orientation from Italian firms," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(4), pages 151-173.
    4. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    5. Nwankwo Cosmas Anayochukwu & Kanyangale Macdonald Isaac, 2019. "Market Orientation and Survival of Small and Medium Enterprises in Nigeria," Foundations of Management, Sciendo, vol. 11(1), pages 291-304, January.
    6. Tendai Douglas Svotwa & Olumide Jaiyeoba & Mornay Roberts-Lombard & Charles Makanyeza, 2022. "Perceived Access to Finance, Entrepreneurial Self-Efficacy, Attitude Toward Entrepreneurship, Entrepreneurial Ability, and Entrepreneurial Intentions: A Botswana Youth Perspective," SAGE Open, , vol. 12(2), pages 21582440221, May.
    7. Ghantous, Nabil & Alnawas, Ibrahim, 2020. "The differential and synergistic effects of market orientation and entrepreneurial orientation on hotel ambidexterity," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    8. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.

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