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The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses

Baker, William E., Sinkula, James M.·2009·Journal of Small Business Management
DOI 10.1111/j.1540-627x.2009.00278.x
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Abstract

Market orientation (MO) and entrepreneurial orientation (EO) are correlated, but distinct constructs. MO reflects the degree to which firms' strategic market planning is driven by customer and competitor intelligence. Entrepreneurial orientation reflects the degree to which firms' growth objectives are driven by the identification and exploitation of untapped market opportunities. When modeled separately, research has reported direct effects of both constructs on firm profitability. When modeled simultaneously, however, the direct effect of EO has disappeared. This has led some scholars to postulate that EO is an antecedent of MO. The results of this study contradict this presumption and suggest that EO and MO complement one another, at least in small businesses, to boost profitability. The major difference between this and previous studies is the inclusion of innovation success, which captures an indirect effect of EO on profitability. At least in small firms, the results suggest that EO complements MO by instilling an opportunistic culture that impacts the quality and quantity of firms' innovations.

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Metadata

Authors
Baker, W. E., & Sinkula, J. M.
Venue
Journal of Small Business Management
Publisher
Informa UK Limited
Published
2009-10
Volume
47
Issue
4
Pages
443-464
ISSN
  • 0047-2778 (ISSN-L)
  • 1540-627X
DOI
10.1111/j.1540-627x.2009.00278.x
OpenAlex
W2056960211
Cited by
903
References
14
FWCI
51.39
Type
journal article
Language
en
Open access
closed
Licence
doi.wiley.com/10.1002/tdm_license_1.1 (tdm, 2161 d)

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CoChat. (2026). Citation check: The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses. https://app.cochat.ai/papers/10.1111/j.1540-627x.2009.00278.x
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Baker, W. E., & Sinkula, J. M. (2009). The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses. Journal of Small Business Management. https://doi.org/10.1111/j.1540-627x.2009.00278.x

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