The Effects of Entrepreneurial Orientation on Firm Organisational Innovation and Market Orientation Towards Firm Business Performance

This research examines the relationships between entrepreneurial orientation, market orientation, innovativeness and firm performance on the moderating effect of external environmental factors on the market orientation and firm performance relationship. There has been relatively little research that examines the relationship between strategic orientations, such as entrepreneurial orientation, market orientation, organizational innovations and their consequences on firm performance in developing countries. This paper represents an attempt to do so from the Malaysian perspectives. A response rate of 398 SMEs in Malaysia and the findings show that the entrepreneurial orientation and innovativeness exert a positive effect on firm business performance, market orientation exhibits a negative effect on firm performance. The external environmental factors do have a moderating effect on the relationship between market orientation and firm performance. This paper provide recommendations for entrepreneurs of how their entrepreneurial orientation, market orientation and organizational innovations influenced their firm performance.