The effect of entrepreneurial orientation and competitive strategy on market orientation in order to improve performance and create sustainable competitive advantage

Document Type : Research Paper


1 Marketing Associate Principal, University of Isfahan, Iran

2 Student management MBA, University of Isfahan, Iran


The study of entrepreneurial orientation concept and codifying a proper strategy to improve the performance of companies has a great importance as the companies have allocated more product market share to themselves by representing new and unique products according to customers’ requirements. The purpose of this study is to examine the impact of entrepreneurial orientation and competitive strategies on market orientation in order to improve the performance of the company and making stable competitive advantage in auto parts manufacturing companies which is applicable in terms of purpose and descriptive-correlation in terms of research method. Accordingly, in order to collect necessary information to test the hypothesis, a researcher-designed questionnaire containing 67 questions in 17 dimensions has been utilized according to Krejcie-Morgan’s table with a simple random sampling method in which 150 personnel of auto parts manufacturing companies among 250 people in Isfahan province were selected as the statistical population of the study. The structural equations model in Smart PLS software package was used to analyze the data and test the hypothesis. The results show that the direct effect of entrepreneurial orientation on market orientation is not significant. The independence and initiative of entrepreneurial orientation dimensions, cost leadership strategy, responsive market orientation, financial performance and scarce resources have also had the most weight in making main variables of the research for parts manufacturers. So, parts manufacturing companies can help their survival and growth in the competitive area by increasing the entrepreneurial
morale in organization level and choosing proper strategies in line with the customers’ needs. 


احمدی، ا. (1391). "اخبار صنعت خودرو".
حسینی مقدم، م. و حجازی، ر. (1393). "تأثیر گرایش کارآفرینانه بر عملکرد بانک‌ها با متغیر میانجی بازارگرایی". فصلنامه توسعه کارآفرینی، دورۀ 7، شمارۀ 2، صص 229-211.
خورشید، ص. و نوجوان، ص.(1392). "تحلیل رقابت‌جویی و انتخاب استراتژی رقابتی مبتنی بر مدل نیروهای رقابتی پورتر، تحلیل سلسله مراتبی فازی و تحلیل پوششی داده". مطالعات مدیریت صنعتی، 11(28)، صص 61-97.
وظیفه‌دوست، ح.، حاجلو، م. و نظرپور، ف. (1392). "بررسی تأثیر پیاده‌سازی استراتژی‌های رقابتی پورتر در پاسخگویی به نیاز بازارمحوری مشتریان شرکت پتروشیمی". مدیریت فرهنگ سازمانی، دورۀ 11، شماره 3، صص 139-121.
Adams, B. and Sykes, V. (2003). “Performance measures and profitability factors of successful African-American entrepreneurs: An exploratory study”. Journal of American Academy of Business, 2(3): 418- 424.
Armstrong, M. (2006). “Performance management: Key strategies and practical guidelines”. Kogan Page, 3.
Barney, J. B. (1999). “Firm resources and sustained competitive advantage”. Journal of Management, 17(1).
Bhuian, S., Menguc, B. and Bell, S. (2005). “Just entrepreneurial enough: the moderating effect of entrepreneurship on the relationship between market orientation and performance”. Journal of Business Research. 58: 9-17.
Christensen, C.M. (1997). “The Innovator's Dilemma When New Technologies Cause Great Firms to Fail”. Harvard Business School Press, Harvard, MA.
Conant, J. S., Mokwa, M. P. and Varadarajan, P. R. (1991). “Strategic types, distinctive marketing competencies and organisational performance: a multiple measures-based study”. Strategic Management Journal, 11: 365-383.
Covin, J. G. and Lumpkin, G. T. (2011). “Entrepreneurial orientation theory and research: reflections on a needed construct”. Entrepreneurship Theory and Practice.35(5): 855–872.
Covin, J. G. and Wales, G. (2011). “The measurement of entrepreneurial orientation, entrepreneurship theory and practice”. Epub ahead of Prin.
Cronbach, L. J. (1951). “Cofficient alpha and the internal structural of tests”. Psychomomertrika, 16(3): 297-337.
Deshpande, R. U., Farley, J., and Frederick E., Webster J. (1993). “Corporate culture, customer orientation, and innovativeness in japanse Firm: a quadrad analysis”, Journal of Marketing,57.
Ellis, P. D. (2005). Market Orientation and Marketing Practice in a Developing Economy, European Journal of Marketing,39(5/6): 629-645.
Felgueira, T., and Gouveia R. R. (2012). “Entrepreneurial orientation, market orientation and performance of teachers and researchers in public higher education institutions”. Viešoji politika ir administravimas, 11(4): 703–718.
Fornell, C., and Larcker, D. F. (1981). “Evalutaing structural equation models with unobservable variables and measurement error”. Journal of High Technology Management Research,11(1):137-153.
Frambach, R. T., Prabhu, J., and Verhallen, T. M. (2003). “The influence of competitive strategy onnew product activity: the role of market orientation”. International Journal of Research in Marketing, 20(4): 377-97.
Franceschini, F., Galetto, M., Maisano D., and Mastrogiacomo, L. (2011). “ISO/TS 16949: analysis of the diffusion and current trends. Proceedings of the Institution of Mechanical Engineers, Part B”. Journal of Engineering Manufacture, 225(5): 735-745.
Frigant, V., and Zumpe, M., (2014). “Are Automotive Global Production Networks Becoming more Global? ”. Munich Personal RePEc Archive, 55727(8): 1-34.
Gonza ́lez-Benito, O., Gonza ́lez-Benito, J., and Mun ̃oz-Gallego, P.A. (2009). “Role of entrepreneurship and market orientation in firms’ success”. European Journal of Marketing, 43: 500-522.
Hayes, A., F. (2009). “Beyond Baron and Kenny: Statistical mediation analysis in the new millennium”. Communication Monographs, 76: 408-420.
Hooley, G., Fahy, J., Greenley, G., D. Beracs, J., Fonfara, K. and Snoj, B. (2003). “Market orientation in the service sector of the transition economies of central Europe ”. European Journal of Marketing, 37(1/2): 86.
Hughes, M., and Morgan, R. (2008). “Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth ”.Industrial Marketing Management. 36(5): 651–661.
Idar, R., and Mahmood, R. (2012). “Marketing orientation as mediator to entrepreneurial orientation and performance relationship: evidence from malaysian smes ”, The 8th SMEs in a Global Economy Conference, Rising to the Global Challenge: Entrepreneurship and SMEs development in Asia, 227.
Ireland, R. D., Hitt, M. A., and Sirmon, D. G. (2003). “A model of strategic entrepreneurship: The construct and its dimensions ”. Journal of Management. 29(6): 963–989.
Jeyavelue, S. (2007). “Organizational Identity and just value competitive Advantage combining Resource Based view and configuration Approach ”. India, Institute of management Kozhikode S.Jeyavelu.
Joo, M. Y., Jae, K. M., Seok, H. J., Joo, J. L. (2012). “The Effects Entrepreneurship and Market Orientation on Social Performance of Social Enterprise ”. International Conference on Economics Marketing and Management, IPEDR Vol.28, IACSIT Press, Singapore, Vol 28, pp.60-65.
Kohli, A. K., Jaworski, B. J. (1990). “Market orientation: the construct, research propositions, and managerial implications ”. Cambridge, MA: Working Paper. Marketing Science Institute, 90-113.
Lechner, Ch., Vidar, G. S. (2014). “Entrepreneurial orientation, firm strategy and small firm performance ”. International Small Business Journal, 32(1): 36-60.
Lumpkin, G. T., and Dess, G. G. (1996). “Clarifying the entrepreneurial orientation construct and linking it to performance ”. Academy of Management Review, 21(1): 135-172.
Lumpkin, G. T., and Dess, G. G. (2001). “Linking two dimensions of entrepreneurial orientation to firm performance:The moderating role of environment and industry life cycle ”. Journal of Business Venturing, 16: 429-451.
Miller, D. (1988). “Relating Porter’s business strategies to environment and structure: Analysis and performance implications ”. Academy of Management Journal, 31(2): 280–308.
Miller, D. (1983). “The Correlates of Entrepreneurship in Three types of Firms ”. Management Science, 7(29): 770-791.
Moss, E., Rousseau, D., Parent, S., St-Laurent, D., and Saintonge, J. (1998). “Correlates of attachment at school age: Maternal reported stress, mother-child interaction, and behavior problems ”. Child Development, 69: 1390-1405.
Naidoo, V. (2010). “Firms survival through a crisis: the influence of market orientation,marketing innovation and business strategy ”. industrial marketing management, 39, 1311-1320.
Narver, J., Slater, S., and MacLachlan, D. (2004). “Responsive and proactive market orientation and new-product success ”. J Prod Innov Manag, 21(1): 334–347.
Phoosawad, S., Fongsuwan, W., and Trimetsoontorn, J., (2014). “Analysis of Thia Auto Parts Organization Performance using a Structural Equation Model ”. Researh Journal of Business Management, 8(3): 173-188.
Porter, M.E. (1980). “Competitive Strategy ”. New York: Free Press.
Porter, M.E. and Teisberg, E.O. (2004). “Redefining competition in health care ”. Harvard Business Revie: 1-13.
Richard, O. C., Wu, P. and Chadwick, K. (2009). “The impact of entrepreneurial orientation on firm performance: the role of CEO position tenure and industry tenure ”. The international Journal of Human Resource Management, 20(5): 1078-1095.
Rodan, S. (2003). “Firm level strategic analysis rumelt, Barney and the RBV making above normal returns without barriers to entry, handout without barriers to entry,handout for business 189 under srduate cource ”. Strategic Management.
Slater, S.F., and Narver, J.C. (2000). “Market orientation and the learning organisation ”. Journal of Marketin, 59(3): 63-74.
Slater, S.F., and Olson, E.M. (2001). “Marketing’s contribution to the implementation of strategy: An empirical analysis ”. Strategic Management Journal. 22(11): 1055–1067.
Suliyanto, S., and Rahab, R. (2012). “The Role of Market Orientation and Learning Orientation in Improving SMEs Performance ”. Asian Social Science, 8 (1).
Voola, R., and O’Cass, A. (2010). “Implementing competitive strategies: the role of responsive and proactive market orientations ”. European Journal of Marketing, 44(1/2): 245-266.