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Entrepreneurial orientation and firm performance in non-profit service organizations: contingent effect of market orientation

Hsiang Ling Chen and Chun-Hui Hsu

The Service Industries Journal, 2013, vol. 33, issue 5, 445-466

Abstract: Prior research indicates that an inverted U-shaped relationship exists between entrepreneurial orientation (EO) and firm performance. This study argues that the inverted U-shaped relationship may depend on the level of market orientation (MO). A moderated hierarchical regression based on a sample of 307 non-profit service organizations reveals that an inverted U-shaped relationship exists between each sub-dimension of EO and performance. However, these relationships do not exist for each sub-dimension of MO. When both market intelligence generation and responsiveness are high, the relationship between innovativeness and performance will be in a linear form. Under the condition of high-market intelligence responsiveness, the higher proactiveness will lead to a higher performance level. These findings will better our understanding of the relationship between EO and firm performance.

Date: 2013
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DOI: 10.1080/02642069.2011.622372

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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