Just Entrepreneurial Enough : The Moderating Effect of Entrepreneurship on the Relationship between Market Orientation and Performance

The resource-based view of the firm is used to examine entrepreneurship as an organizational capability that has a modifying effect on market orientation. According to the model developed of the market orientation-performance relationship, the effect of a firm's market orientation on business performance is highest when the firm's entrepreneurial activities are at a moderate level. Data from a survey of 231 not-for-profit hospitals were used to test the model.Regression analyses of the data indicate that the synergistic effect of market orientation and entrepreneurship on performance is indeed greatest at moderate levels of entrepreneurship.The findings suggest that the vigorous pursuit of entrepreneurial activities without regard for the effect on other organizational activities could be suboptimal. (SAA)