Management, Market Orientation and Performance in Entrepreneurial Firms.

Most studies suggest a positive impact of market orientation on company performance. There is also increasing support that this effect holds true in growth-oriented entrepreneurial firms that are active in innovation-intensive markets. However, whether the antecedents of market orientation for established firms are also valid in this context is still an unresolved issue. Using a survey-generated sample of 252 entrepreneurial firms, this study analyzes the linkages of management activities, market orientation, and performance in these firms. Findings suggest that the management approach in place exerts a strong influence on the level of market orientation of an entrepreneurial firm and thereby, also on performance. Owner-managers can thus systematically use management style as a differentiator from competition.