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A Study on the Differences between the Impacts of Entrepreneurial Orientation and Market Orientation on Business Performance

Author: HePeiXu
Tutor: ShiChunSheng
School: Harbin Institute of Technology
Course: Business management
Keywords: entrepreneurial orientation market orientation organizational learning industry type business performance
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 191
Quote: 1
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Abstract


As a kind of operation philosophy, entrepreneurial orientation and market orientation have been attracting large concern in both academic circles and practice circles since their advent. However, the mechanism that entrepreneurial orientation and market orientation affect business performance increasingly is met with skepticism in both domestic and foreign researches: (1)will entrepreneurial orientation and market orientation affect business performance at the same time, and if there are some potential mediators among the three variables? (2)if there are some potential moderators in the relationships among entrepreneurial orientation, market orientation and business performance? (3)should enterprises choose to implement entrepreneurial orientation or market orientation, or choose to implement the two orientation at the same time? Therefore, it is both theoretically and practically valuable to explore the mechanism that entrepreneurial orientation and market orientation affect business performance by doing an empirical examination on Chinese enterprises.According to the in-depth analysis on the related theories about entrepreneurial orientation, market orientation, organizational learning and business performance, combining with the depth interviewing on several enterprises’managers, this study proposes an integrated model for the relationships among entrepreneurial orientation, market orientation, organizational learning and business performance by using organizational learning as a mediator and industry type as a moderator.Based on the questionnaire survey and data analysis, the hypothesized relationships among the variables in the model of this study were verified. The result indicates that: (1)The scales for measuring entrepreneurial orientation, market orientation, organizational learning and business performance are suitable to Chinese enterprises; (2)The effects of entrepreneurial orientation and market orientation on business performance are completely mediated through organizational learning; (3)Industry type moderates the relationship between the two kinds of strategic orientation and organizational learning and the relationship between organizational learning and business performance. In other words, the effects of entrepreneurial orientation and market orientation on business performance are different for the enterprises belong to different industry types. In high-tech industry, the effect of entrepreneurial orientation on business performance is larger than the effect of market orientation on business performance. While, when it comes to non high-tech industry, the effect of market orientation on business performance is larger than the effect of entrepreneurial orientation on business performance; (4)It shows considerable differences between the effects of entrepreneurial orientation on business performance in the two industry types. In contrast, there is only a little difference between the effects of market orientation on business performance in the two industry types.Finally, in view of the findings of our empirical study and the shortcomings in the management of strategic orientation, some managerial suggestions are put forward. They are including actively constructing corporate cultures of entrepreneurial orientation and market orientation, transforming Chinese enterprises into a kind of learning organization, and formulating a reasonable combination of strategic orientation according to the industry type of the enterprise. In addition, this paper makes a thorough analysis of formulating and implementing the development strategy by an enterprise through the case study on DA hi-tech biological pharmaceutical company.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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