Entrepreneurial orientation, market orientation and networking: Impact on innovation and firm performance
Vol. Volume 20, Number 4 December/2015
Rouma Bucktowar, Akin Kocak & Keseven Padachi
The study examines the relationships among entrepreneurial orientation, market orientation and networking on firm performance with radical and incremental innovation as the mediator. The present study draws on the resource-based view theory to provide insights about intangible resources and capabilities among SMEs. The study adopts a subjectivist approach and is based on multiple case study method by conducting interviews with 7 SMEs purposively operating in different sectors. The research findings seem to support both proactive and responsive market orientation, entrepreneurial orientation and networking have positive relationship on firm performance with radical and incremental innovation as the mediator. It appears that firms initiating radical innovation takes longer for new product performance because of lack of information about customer needs in the market but networking assists in providing market information that enables commercialization of new products. Further, networking among firms drives performance while strong ties are practiced to a lesser extent. Examining networking with EO and MO is rarely seen in the literature. Firstly, the study enriches the contribution by adding the dimension of networking in the model. Further, the enhancing effect of innovation on firm performance has not been examined in previous studies. In order to fill this research gap, the second contribution addresses how innovation, further split into radical and incremental dimensions, enhances business orientation effect on firm performance. Finally, the third contribution is in terms of the study in a context, Mauritius, a small island developing state, where SMEs operate under different environmental conditions
Market orientation, networking, entrepreneurial orientation, firm performance.