Title: Entrepreneurial orientation and market orientation as antecedents of organisational innovation and performance

Authors: Asbjørn Veidal; Tor Korneliussen

Addresses: Norwegian Agricultural Economics Research Institute, P.O. Box 8024 Dep, NO-0030 Oslo, Norway ' Bodø Graduate School of Business, University of Nordland, NO-8049 Bodø, Norway

Abstract: The aim of this article is to investigate entrepreneurial orientation and market orientation as antecedents of organisational innovation and performance. Five theory-based hypotheses are tested. Survey data from 213 firms were analysed using structural equation modelling. The findings suggest that there are positive and statistically significant relationships between organisational innovation and performance, and between market orientation and performance. Surprisingly, entrepreneurial orientation does not have a direct effect on performance. The effect of entrepreneurial orientation on performance is mediated by organisational innovation. These results indicate that entrepreneurial orientation should focus on organisational innovation as a way to improve the overall performance of a firm. In addition, managers should allocate resources to market orientation and organisational innovation in order to improve performance.

Keywords: entrepreneurial orientation; market orientation; organisational innovation; firm performance; second-order; structural equation modelling; SEM.

DOI: 10.1504/IJESB.2013.054965

International Journal of Entrepreneurship and Small Business, 2013 Vol.19 No.2, pp.234 - 250

Published online: 30 Sep 2013 *

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