Purpose The literature establishes complex relationships between entrepreneurial orientation (EO) and performance, with mixed findings suggesting the variability of the magnitude of the relationship between the two. Some studies report a positive relationship, some negative, while some report an insignificant relationship between EO and performance. These conflicting findings suggest that the EO-performance relationship is more complex than a simple main-effects-only relationship. The literature offers two distinct approaches – integrating moderating or mediation variables in advancing the EO-performance relationship. The purpose of this paper is to extend current knowledge by examining underlying processes through which EO contributes to performance and the specific conditions under which this process is facilitated. Design/methodology/approach To test the hypotheses the authors chose small service firms in Australia. Industry representation included: accommodation and food services; health care services; rental, hiring and real estate services; transport, postal and warehousing; arts and recreation services; retail trade; construction and training services; and professional, scientific and technical services. The services sector offers a unique opportunity to analyze variances in entrepreneurial engagement and organizational outcomes given the competitive intensity within the service sector which requires firms to engage in venturing, renewal and innovation. The proposed hypotheses were tested through a hierarchical regression analysis. Findings This study finds the support for the mediation effect of marketing capability on the EO-performance relationship. Critically, this study also finds that marketing resources moderates on the indirect effect of EO on performance via marketing capability. The findings supporting both the mediation and moderation effects of marketing capability and marketing resources on the EO-performance relationship (moderated mediation model) suggests that greater insight into how EO influences small service firm performance can be achieved through considering in combination with other firm-level constructs (marketing capability and marketing resources in this study). Originality/value It addresses the call by prior studies to link the EO construct to theory by embedding marketing resources and marketing capabilities in the EO-performance relationship. Importantly, by accounting for both mediation and moderation effects the authors provide a more complete picture of the EO-performance relationship that highlights the mediating role of marketing capability and the moderating role of marketing resources. This approach helps to reconcile the critical but separate directions proposed by prior studies in advancing the EO-performance relationship.
Purpose While extant research highlights the importance of both market orientation and brand orientation in brand success, it is still unclear how they actually combine to contribute to brand performance. Grounded in the theoretical perspectives of the resource-based view and dynamic capabilities, this study unpacks how, and when, brand orientation and market orientation link systematically to influence brand performance. Design/methodology/approach In testing the research hypotheses involving mediation and moderation effects, survey data were gathered from a sample of business firms in the manufacturing sector and analyzed through regression analysis. Findings The results suggest brand orientation manifests through market orientation to influence brand performance via the intervening mechanism of brand management capability. The results also suggest at high levels of competitive intensity, the systematic combination of market orientation and brand orientation is critical in facilitating brand management capability enhancement and subsequent brand performance. Originality/value This study extends current literature by providing a more detailed account of how brand orientation and market orientation systematically combine to yield superior brand performance via the mediating role of brand management capability. This study also provides further insights into how, in response to different levels of competitive intensity, the systematic combination of brand orientation and market orientation is managed to facilitate brand management capability enhancement and subsequent brand performance.
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