When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance

A central challenge facing firms is their ability to innovate and create new products whilst at the same time meeting existing market demands. Entrepreneurial orientation has been proposed as a solution to the former whilst market orientation is proposed as a solution to the latter. Entrepreneuria...

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Main Author: Yip, Leslie Ka Wa
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2006
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20585/
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author Yip, Leslie Ka Wa
author_facet Yip, Leslie Ka Wa
author_sort Yip, Leslie Ka Wa
building Nottingham Research Data Repository
collection Online Access
description A central challenge facing firms is their ability to innovate and create new products whilst at the same time meeting existing market demands. Entrepreneurial orientation has been proposed as a solution to the former whilst market orientation is proposed as a solution to the latter. Entrepreneurial orientation is a mindset a firm can employ to encourage innovative and creative activity designed to create products in anticipation of future market trends. Market orientation is a set of behaviours associated with collecting, disseminating and responding to information on current customers and market needs. Recent research has suggested that a firm should use both orientations to ensure it does not become market-led but is instead market-leading with its current and future products. However, studies into the simultaneous use of EO and MO have reported tensions between the two orientations such that they may be compatible. This problem is compounded by contradictory research findings which imply that we are yet to fully understand how the two work together in practice. In this study, a thorough analysis is made of literature into the relationship between the two orientations and a conceptual model is developed specifying how the two can be made to work in practice and what their outcomes are likely to be. This model is then explored using two case studies: BMW and Toyota. It is found that EO, MO, and EO and MO in conjunction are all different paths to superior performance but each path bears very different characteristics and implications for the type of learning and the type of innovation. Implications for academics, managers, and public policy are highlighted as well as avenues for future research. Study limitations are also acknowledged.
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spelling nottingham-205852018-04-19T16:34:53Z https://eprints.nottingham.ac.uk/20585/ When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance Yip, Leslie Ka Wa A central challenge facing firms is their ability to innovate and create new products whilst at the same time meeting existing market demands. Entrepreneurial orientation has been proposed as a solution to the former whilst market orientation is proposed as a solution to the latter. Entrepreneurial orientation is a mindset a firm can employ to encourage innovative and creative activity designed to create products in anticipation of future market trends. Market orientation is a set of behaviours associated with collecting, disseminating and responding to information on current customers and market needs. Recent research has suggested that a firm should use both orientations to ensure it does not become market-led but is instead market-leading with its current and future products. However, studies into the simultaneous use of EO and MO have reported tensions between the two orientations such that they may be compatible. This problem is compounded by contradictory research findings which imply that we are yet to fully understand how the two work together in practice. In this study, a thorough analysis is made of literature into the relationship between the two orientations and a conceptual model is developed specifying how the two can be made to work in practice and what their outcomes are likely to be. This model is then explored using two case studies: BMW and Toyota. It is found that EO, MO, and EO and MO in conjunction are all different paths to superior performance but each path bears very different characteristics and implications for the type of learning and the type of innovation. Implications for academics, managers, and public policy are highlighted as well as avenues for future research. Study limitations are also acknowledged. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20585/1/06MSclixlkwy.pdf Yip, Leslie Ka Wa (2006) When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance. [Dissertation (University of Nottingham only)] (Unpublished) Market Orientation Entrepreneurial Orientation Market Entrepreneurship Innovation Toyota BMW Learning Organisational Strucutre and Behaviour Orientation Case Studies Market-lead Market-driving Organisational Ambidexterity Contextual Ambidexterity Atuahene-Gima Kohli-Jaworski
spellingShingle Market Orientation
Entrepreneurial Orientation
Market Entrepreneurship
Innovation
Toyota
BMW
Learning
Organisational Strucutre and Behaviour
Orientation
Case Studies
Market-lead
Market-driving
Organisational Ambidexterity
Contextual Ambidexterity
Atuahene-Gima Kohli-Jaworski
Yip, Leslie Ka Wa
When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title_full When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title_fullStr When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title_full_unstemmed When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title_short When Opposite Attract: An Exploratory Study of the Relationship between Entrepreneurial Orientation and Market Orientation and their Paths to Innovation and Performance
title_sort when opposite attract: an exploratory study of the relationship between entrepreneurial orientation and market orientation and their paths to innovation and performance
topic Market Orientation
Entrepreneurial Orientation
Market Entrepreneurship
Innovation
Toyota
BMW
Learning
Organisational Strucutre and Behaviour
Orientation
Case Studies
Market-lead
Market-driving
Organisational Ambidexterity
Contextual Ambidexterity
Atuahene-Gima Kohli-Jaworski
url https://eprints.nottingham.ac.uk/20585/