THE INTERPLAY BETWEEN ORIENTATIONS: ENTREPRENEURIAL, TECHNOLOGY AND CUSTOMER ORIENTATIONS IN SOFTWARE COMPANIES

Henri Hakala () and Marko Kohtamäki ()
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Henri Hakala: Department of Management, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland
Marko Kohtamäki: Department of Management, University of Vaasa, P.O. Box 700, FI-65101 Vaasa, Finland

Journal of Enterprising Culture (JEC), 2010, vol. 18, issue 03, pages 265-290

Abstract: This study examines the interplay between entrepreneurial, technology and customer orientations and company performance using data from 164 software companies. To conduct the analysis, the study applies PLS (partial least squares) modeling to understand the direct and indirect effects of entrepreneurial, customer and technology orientations on the performance of a software company. The results indicate that entrepreneurial and customer orientations directly affect performance, but, in this context, they do not support the view that a technology orientation directly enhances performance. More importantly, results suggest that an entrepreneurial orientation positively affects both customer and technology orientations. It appears that software companies need a capability to serve customers well, but also need to recognize new business opportunities from within their current customer relationships. The results suggest that to achieve high levels of performance, software companies need to balance the elements of entrepreneurial proactiveness and innovation with customer needs.

Keywords: Customer orientation; entrepreneurial orientation; technology orientation; company performance; software industry (search for similar items in EconPapers)
Date: 2010
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