The Impacts of Entrepreneurial Orientation and Market Orientation on Innovativeness in Chinese SMEs

In this study, the effects of entrepreneurial orientation and market orientation on innovation activities of Chinese SMEs are examined. A conceptual framework incorporating these constructs is built and tested by using data from questionnaire survey. The results indicate that in Chinese SMEs, entrepreneurial orientation does not necessarily correlates with market orientation; entrepreneurial orientation will lead to radical innovation and directly improve business performance, while market orientation can help enhance business performance totally via incremental innovation as a mediator. Managerial implications, limitations as well as future research directions are also discussed.