The Role of Market Orientation as a Moderating Variable in the Relationship between Entrepreneurial Orientation and Firm Performance.

The Role of Market Orientation as a Moderating Variable in the Relationship between Entrepreneurial Orientation and Firm Performance.


  • Dzulkarnain Musa Polytechnic Tuanku Syed Sirajuddin, Perlis
  • Abdullah Abd Ghani College of Business, Universiti Utara Malaysia
  • Shuhymee Ahmad College of Business, Universiti Utara Malaysia


entrepreneurial orientation, market orientation, firm performance


This conceptual paper tries to examine the relationship between entrepreneurial orientation (EO) and firm performance and also the role of market orientation (MO) as a moderating variable. EO and MO are important strategic orientations that can coexist and relate to the firm’s performance but most of the studies which performed these orientations towards firm performance considered as independent variables and carried out separately. This paper also discussed the main dimensions of EO and MO variables and its relation to the firm performance. Finally it will be ended with the conceptual framework and methods that should be used for future study.


Download data is not yet available.


Aloulou, W., & Fayolle, A. (2005). “A conceptual approach of entrepreneurial orientation within small business context,”. Journal of Enterprising Culture, 13(1): 24-25

Atuahene-Gima, K., & Ko, A. (2001). An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization Science, 12 (1), 54-74.

Ayupp, K., & Kong, W. (2010). “The impact task and outcome interdependence and self-efficacy on employees’ work motivation: An analysis of the Malaysian retail industry,” Asia Pacific Review, 16(1-2): 123-142.

Baker, W., & Sinkula, J. (2009). “The complementary effects of market orientationand entrepreneurship orientation on profitability in small businesses,” Journal of Small Business Management, 47(4): 443-464

Becherer, R., & Maurer, J. (1997). The moderating effect of environmental variables on the entrepreneurial and marketing orientation of entrepreneur-led firms. Entrepreneurship: Theory & Practice, 47-58.

Boso, N., Cadogan, J., & Story, V. (2011). Complementary effect of entrepreneurial and market orientations on export new product success under differing levels of competitive intensity and financial capital. (A. i. press, Ed.) International Business Review .

Burton, R., DeSanctis, Gerardine., & Obel, B. 2006. Organizational design: a step by step approach. Cambridge University Press.

Cadogan, J., Kuivalainen, O., & Sundqvist, S. (2009). “Export market- oriented behavior and export performance: Quadratic and moderating effects under differing degrees of market dynamism and internationalization,” Journal of International Marketing, 17(4): 71-89.

Cavana, R. , Delahaye, B., & Sekaran, U. (2001). Applied business research: Qualitative and quantitative methods. Milton, Qld: Jon Wiley & Sons Australia.

Coley, L., Mentzer, J., & Cooper, M. (2010). “Is “consumer orientation” a dimension of market orientation in consumer markets?” Journal of Marketing Theory & Practice, 18(2): 141-154.

Covin, J., Green, K., & Slevin, D. (2006). Strategic process effects on the entrepreneurial orientation-sales growth rate relationships. Entrepreneurship Theory & Practice, 30(1): 57-81.

Covin, J., & Slevin, D. (1988). The influence of organization structure on the utility of an entrepreneurial top management style. Journal of Management Studies , 25 (3), 217-234.

Dana, L. (2011). World Encyclopedia of Entrepreneurship. Edward Elgar Publishing

Dawes, J. (2000). “Market orientation and company profitability: further evidence incorporating longitudinal data,” Australian Journal of Management, 25(2): 173-196.

De Clercq, D., Dimov, D. & Thongpapanl, N. (2010). The moderating impact of internal social exchange processes on the entrepreneurial orientation-performance relationship. Journal of Business Venturing. 25 (2010), 87-103.

Dess. (2009). Strategic Mgmt: Text & Cases 3E. Tata McGraw-Hill Education. Fayolle, A. & Todorov, K. (2011). European Entrepreneurship in the Globalizing Economy. Edward Elgar Publishing.

Frishammar, J., Horte, S. (2007). “The role of market orientation and entrepreneurial orientation for new product development performance in manufacturing,” Technology Analysis & Strategic Management, 19(6): 765-788.

Golan, B. (2006). “Achieving growth and responsiveness: Process management and market orientation in small firms,” Journal of Small Business Management, 44(3): 369-385.

Han, J., Kim, N., & Srivastava, R. (1998). Market Orientation and Organizational Performance: Is Innovation a Missing Link?, The Journal of Marketing, 62 (4). 30-45.

Hisrich, R., Peters, M., & Shepherd, D. (2005). Entrepreneurship. Tata McGraw Hill.

Homburg, C., Grozdanovic, M., & Klarmann, M. (2007). “Responsiveness to customers and competitors: the role of affective and cognitive organizational systems,” Journal of Marketing, 71(3): 18-38.

Hurley, R., & Hult, G. (1998). Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination, The Journal of Marketing. 62 (3). 42-54.

Im, S., Mason, C., Houston, M. (2007). “Does innate consumer innovativeness relate to new product/service adoption behaviour? The intervening role of social learning via vicarious innovativeness,” Journal of the Academy of Marketing Science, 35(1): 63-75.

Iskandarsyah. (2008). Orientasi pasaran, kelebihan daya saing dan prestasi syarikat kecil dan sederhana di Indonesia. Unpublished PhD Thesis. Universiti Sains Malaysia.

Jordan, G., & Segelod, E. (2006). “Software innovativeness: outcomes on project performance, knowledge enhancement, and external linkages,” R&D Management, 36(2): 127-142.

Landstrom, H. (2008). Entrepreneurship, sustainable growth and performance: frontiers in European entrepreneurship research. Edward Elgar Publishing.

Langerak, F. (2003). “The effect of market orientation on positional advantage and organizational performance,” Journal of Strategic Marketing,11(2): 93-116.

Lawer, C. & Knox, S. (2008). “Reverse-market orientation and corporate brand development,” International Studies of Management & Organization, 37(4): 64-83.

Leedy, P., & Ormrod, J. (2005). Practical research: planning and design (8th ed.). New Jersey: Pearson Education.

Li, Y., Zhao, Y., Tan, J. & Liu, Y. (2008). “Moderating effects of entrepreneurial orientation on market orientation performance linkage: Evidence from Chinese small firms,” Journal of Small Business Management, 46(1): 113-133.

Lumpkin, G., & Dess, G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review , 21 (1), 135-172.

Lumpkin, G., & Dess, G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life-cycle. Journal of Business Venturing, 16: 429-451.

Lumpkin, G., Cogliser, C., & Schneider, D. (2009). “Understanding and measuring autonomy: an entrepreneurial orientation perspective,” Entrepreneurship: Theory & Practice, 33(1): 47-69.

Mackey, A., Mackey, T., & Barney, J. (2007). Corporate social responsibility and firm performance: investor performances and corporate strategies. Academy of Management Review. Vol 32. No. 3. pp 817-835.

Marino, L., Strandholm, K., Steensma, K., & Weaver, M. (2002). “The moderating effect of national culture on the relationship between entrepreneurial orientation and strategic alliance portfolio extensiveness,” Entrepreneurship: Theory & Practice, 26(4): 145-161.

Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science , 29 (7), 770-791.

Narver, J., & Slater, S. (1990). The effect of a market orientation on business profitability. Journal of Marketing , 54 (4), 20-28.

Noble, C., Sinha, R., & Kumar, A. (2002). “Market orientation and alternative strategic orientations: a longitudinal assessment of performance implications,” Journal of Marketing, 66(4): 25-39.

Norzalita, A., & Norjaya, M. (2010). How will market orientation and external environment influence the performance among SMEs in the agro-food sector in Malaysia?, International Business Research. 3 (3). 154-164.

Kerlinger, F. (1973). Foundations of Behavioural Research. (2nd edition). New York: Holt, Rinehart & Winston.

Kreiser, P., Marino, L., & Weaver, M. (2002). “Assessing the psychometric properties of the entrepreneurial orientation scale: a multi-country analysis,” Entrepreneurship: Theory & Practice, 26(4): 71-95.

Kroeger, J.W. (2007). Firm performance as a function of entrepreneurial orientation and strategic planning practices. Unpublished DBA Dissertation, Cleveland State University.

Kumar, K., & Subramanian, R. (2000). “Navigate the external environment through a market orientation,” SAM

Advanced Management Journal, 65(1): 16-23.

Ramayah, T., Samat, N., & Lo., M.-C. (2011). Market orientation, service quality and organizational performance in service organizations in Malaysia. Asia-Pacific Journal of Business Administration, 3 (1), 8-27.

Sefnedi. (2007). The relationship between market orientation and export performance: the mediation impact of export marketing management competency and the moderating effect of environmental factors. Unpublished PhD Thesis. Universiti Sains Malaysia.

Sekaran, U., & Bougie, R. (2010). Research Methods for Business (5th ed.). West Sussex, United Kingdom: John Wiley & Sons Ltd.

Schmude, J. (2007). Empirical entrepreneurship in Europe: new perspectives. Edward Elgar Publishing.

Sin, L., Tse, A., Yau, O., Chow, R., Lee, J. (2005). “Market orientation, relationship marketing orientation, and business performance: the moderating effects of economic ideology and industry type,” Journal of International Marketing, 13(1): 36-57.

Stam, W., Elfring, T. (2008). “Entrepreneurial orientation and new venture performance: The moderating role of intra- and extra industry social capital,” Academy of Management Journal, 51(1): 97-111.

Terziovski, M. (2008). Energizing Management Through Innovation and Entrepreneurship: European Research and Practice. Taylor & Francis.

Tzokas, N., Carter, S., & Kyriazopoulos, P. (2001). “Marketing and entrepreneurial orientation in small firms, Enterprise and Innovation Management Studies, 2(1): 19-33.

Wales, W. & Rensselaer Polytechnic Institute. (2007). Entrepreneurial orientation within young firms: A theoretical and empirical examination of a behavioral phenomenon. Rensselaer Polytechnic Institute.

Wang, C. (2008). “Entrepreneurial, orientation, learning orientation, and firm performance,” Entrepreneurship Theory & Practice, 635-656.

Ward, S., Girardi, A., & Lewandowska, A. (2006). “A cross-national validation of the Narver and Slater market orientation scale,” Journal of Marketing Theory & Practice, 14(2):155-167.

Wiklund, J. (2006). Entrepreneurship: frameworks and empirical investigations from forthcoming leaders of European research. Emerald Group Publishing.

Wiklund, J. & Shepherd, D. (2003). Knowledge-Based Resources, Entrepreneurial Orientation, and the Performance of Small and Medium-Sized Businesses. Strategic Management Journal. 24(13): 1307-1314.

Zahra, S. (2008). Being entrepreneurial and market driven: Implications for company performance. Journal of Strategy and Management , 1 (2), 125-142.

Zahra, S.. & Garvis, D. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of Business Venturing, 15: 469-492.

Zhou, K., Brown, J., Dev, C., & Agarwal, S. (2007). The Effects of Customer and Competitor Orientations on Performance in Global Markets: A Contingency Analysis. Journal of International Business Studies, 38 (2). 303-319.

Source: Journal of International Business Studies, Vol. 38, No. 2 (Mar., 2007), pp. 303-319

Zikmund, W. (2000). Business Research Methods (6th Ed.). Forth Worth, Texas: The Dryden Press.




How to Cite

Musa, D., Abd Ghani, A., & Ahmad, S. . (2022). The Role of Market Orientation as a Moderating Variable in the Relationship between Entrepreneurial Orientation and Firm Performance . Global Business Management Review (GBMR), 3(2), 15–31. Retrieved from