The Moderating Effect of Environmental Variables on the Entrepreneurial and Marketing Orientation of Entrepreneur-led Firms

Abstract

A firm's marketing orientation and entrepreneurial orientation intuitively should relate to organizational performance. Considerable theory can be found concerning the causes and consequences of each orientation as well as their relationship, but little empirical evidence exists, especially for small-firm samples. This paper examines the relationship between the two concepts and how this relationship is moderated by the firm's external environment. In addition, the relationship of marketing orientation and entrepreneurial orientation to firm performance and the moderating effects of the environment on these two relationships are examined. The sample consists of entrepreneurs, defined as those individuals who have started or purchased a small business, and who are still leading the business they started or purchased.