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Purpose The purpose of this paper is to examine the relationship between entrepreneurial orientation, innovation capacity, and firm performance in the creative industries context. Design/methodology/approach The paper uses a survey‐based empirical analysis. Findings Innovation capacity mediates the relationship between entrepreneurial orientation and two different measures of firm performance in the creative industries. Research limitations/implications These results suggest that success in the creative industries requires significant alignment between the entrepreneurial management and creative capabilities of the firm. Firms must identify unique opportunities to exploit that will foster and best leverage their creative competencies. Originality/value In addition to providing initial insight on the relationship between entrepreneurial action, innovative capacity, and performance with the creative industries, the paper also is one of the first on the creative industries to focus on firm‐level strategy.
Parkman et al. (Fri,) studied this question.