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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.
Journal of Strategy and Management – Emerald Publishing
Published: Nov 21, 2008
Keywords: Entrepreneurialism; Market driven production; Market orientation; Organizational performance
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