ENTREPRENEURIAL AND MARKET-ORIENTED ACTIVITIES, FINANCIAL CAPITAL, ENVIRONMENT TURBULENCE, AND EXPORT PERFORMANCE IN AN EMERGING ECONOMY

  • Nathaniel Boso University of Leeds
  • Pejvak Oghazi Linnaeus University
  • John W. Cadogan Loughborough University and Lappeenranta University of Technology
  • Vicky M. Story Loughborough University

Abstract

This study examines the impact of the simultaneous implementation of entrepreneurial and market-oriented export activities on export success and whether this relationship depends on levels of financial capital and market environment turbulence. The findings from a study of 164 Ghanaian exporting small and medium-sized enterprises (SMEs) indicate that high levels of both entrepreneurial and market orientation generate better export performance. The relationship is stronger when firms have greater financial capital and operate in more turbulent export market environments. These results extend existing knowledge of how SMEs can improve export performance by seeking fit between firm-specific capabilities and external environment conditions.

Downloads

Download data is not yet available.

References

REFERENCES
Abor J. & Quartey, P. (2010). Issues in SME Development in Ghana and South Africa. International Research Journal of Finance and Economics, 39 (May), 218-228.
Acquaah, M. (2007). Managerial Social Capital, Strategic Orientation, and Organizational Performance in an Emerging Economy. Strategic Management Journal, 28, 1235–1255.
Aiken, L.S., & West, S. G. (1991). Multiple Regression: Testing and Interpreting Interactions. Sage Publication, Inc., Thousand Oaks, CA.
Alpkan, L., Yilmaz, C., & Kaya, N. (2007). Market Orientation and Planning Flexibility in SMEs: Performance Implications and an Empirical Investigation, International Small Business Journal, 25(2), 152–172.
Arenius, P. & Minniti, M. (2005). Perceptual Variables and Nascent Entrepreneurship. Small Business Economics, 24, 233-247.
Atuahene-Gima, K. & Ko, A. (2001). An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization Science, 12 (1), 54–74.
Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22, 464-482.
Aulakh, P., Kotabe, M., & Teegen, H. (2000). Export Strategies and Performance of Firms from Emerging Economies: Evidence from Brazil, Chile and Mexico. Academy of Management Journal, 43(3), 342–361.
Bagozzi, R. P. & Yi, Y. (1988). On the evaluation of structural equation models, Journal of the Academy of Marketing Science, 16(1), 74-95.
Baker, W. E., & Sinkula, J. M. (2009). The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses. Journal of Small Business Management, 47(4), 443–464.
Balabanis, G. I. & Katsikea, E. S. (2003). Being an entrepreneurial exporter: Does it pay? International Business Review, 12, 233–252.
Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just entrepreneurial enough: The moderating effect of entrepreneurship on the relationship between market orientation and performance. Journal of Business Research, 58, 9–17.
Bianchi, M. (2010). Credit constraints, entrepreneurial talent, and economic development. Small Business Economics, 34, 93–104.
Boso, N., Cadogan, J., & Story, V. (2012) Entrepreneural orientation and market orientation as drivers of product innovation success: A study of exporters from a developing economy. International Small Business Journal March.
Burgess, S. M. & Steenkamp, J-B. E. M. (2006). Marketing Renaissance: How Research in Emerging Consumer Markets Advances Marketing Science and Practice. International Journal of Research in Marketing, 23 (December), 337-356.
Cadogan, J. W., Diamantopoulos A. & Siguaw, J. A. (2002). Export Market-oriented Activities: Their Antecedents and Performance Consequences. Journal of International Business Studies, 33, 3 615-626.
Cadogan, J.W., Kuivalainen, O., & Sundqvist, S. (2009). Export Market-Oriented Behavior and Export Performance: Quadratic and Moderating Effects under Differing Degrees of Market Dynamism and Internationalization. Journal of International Marketing, 17(4), 71–89.
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability and firm performance. Industrial Marketing Management, 31, 515–524.
Cavusgil, S. T., & Zou, S. (1994). Marketing Strategy-Performance Relationship: An Investigation of the Empirical Link in Export Market Ventures. Journal of Marketing, 58 (January), 1-21.
Chang, S., van Witteloostuijn, A., & Eden, L. (2010). Letter from the Editors: Common Method Variance in International Business Research. Journal of International Business Studies, 41(2), 178-184.
Cohen, J., Cohen, P., West, S.G., & Aiken, L.S. (2003). Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences (3rd edition). Mahmwah, NJ: Lawrence Erlbaum Associates.
Cooper, A.C., Gimeno-Gascon, F.J., & Woo, C.Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9 (5), 371–395.
Covin, J. G. & Slevin, D. P. (1989). Strategic Management of Small Firms in Hostile and Benign Environments. Entrepreneurship Theory and Practice, 10 (1), 75-87.
Ellis, P.D. (2007). Distance, dependence and diversity of markets: effects on market orientation. Journal of International Business Studies, 38, 374–386.
Ennen, E., & Richter, A. (2010). The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations. Journal of Management, 36, 207 – 233.
Goedhuys, M. & Sleuwaegen, L. (2000). Entrepreneurship and growth of entrepreneurial firms in Cote D'ivoire. Journal of Development Studies, 36 (3), 123-145.
Goedhuys, M. & Sleuwaegen, L. (2010). High-growth entrepreneurial firms in Africa: a quantile regression approach. Small Business Economics, 34, 31–51.
Hakala, H. (2011). Strategic Orientations in Management Literature: Three Approaches to Understanding the Interaction between Market, Technology, Entrepreneurial and Learning Orientations. International Journal of Management Reviews, 13, 199-217.
He, Z. & Wong, P. (2004). Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis. Organization Science, 15(4) 481–494.
Hoskisson, R.E., Eden, L., Lau, C.M., & Wright, M. (2000). Strategy in emerging economies. Academy of Management Journal, 43 (3), 249–267.
Hughes M., Hughes, P., & Morgan, R. E. (2007). Exploitative Learning and Entrepreneurial Orientation Alignment in Emerging Young Firms: Implications for Market and Response Performance. British Journal of Management, 18, 359–375.
Hughes, M. & Morgan, R.E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36, 651–661.
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial marketing management, 33(5), 429-438.
Hult, G. T. M. & Ketchen, D. Jr. (2001). Does Market Orientation Matter? : A Test of the Relationship Between Positional Advantage and Performance. Strategic Management Journal, 22 (9), 899- 906.
Hultman, M., Robson, M. J., & Katsikeas, C. S. (2009). Export Product Strategy Fit and Performance: An Empirical Investigation. Journal of International Marketing, 17 (4), 1–23.
Jambulingam, T., Kathuria, R., & Doucette, W. R. (2005). Entrepreneurial orientation as a basis for classification within a service industry: the case of retail pharmacy industry. Journal of operations management, 23, 23-42.
Jaworski, B., Kohli, A. K., & Sahay, A. (2000). Market-Driven Versus Driving Markets. Journal of the Academy of Marketing Science, 28, 45-54.
Ketchen, Jr., D. J., Thomas, J. B., & Snow, C. C. (1993). Organizational Configurations and Performance: A Comparison of Theoretical Approaches. Academy of Management Journal, 36(6), 1278-1313.
Khavul, S., Pérez-Nordtvedt, L., & Wood, L. (2010). Organizational entrainment and international new ventures from emerging markets. Journal of Business Venturing, 25, 104–119.
Kirca, A.H., Jayachandran, S. & Bearden, W.O. (2005). Market orientation: A meta- analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 69, 2, 24-41.
Knight, G. & Kim, D. (2009). International business competence and the contemporary firm. Journal of International Business Studies, 40(2), 255-273 .
Kohli, A.K. & Jaworski, B.J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of Marketing, 54, April, 1-18.
Kropp, F., Lindsay, N. J., & Shoham, A. (2008). Entrepreneurial orientation and international entrepreneurial business venture startup. International Journal of Entrepreneurial Behaviour & Research, 14(2), 102-117.
Kropp, F., Lindsay, N.J., & Shoham, A. (2006). Entrepreneurial, market, and learning orientations and international entrepreneurial business venture performance in South African firms, International Marketing Review, 23(5), 504-523.
Kuada, J. & Buatsi, S. N. (2005). Market Orientation and Management Practices in Ghanaian Firms: Revisiting the Jaworski and Kohli Framework. Journal of International Marketing, 13(1), 58-88.
Kuivalainen, O., Sundqvist, S., & Servais, P. (2007). Firms’ degree of born-globalness, international entrepreneurial orientation and export performance. Journal of World Business, 42, 253–267.
Langerak, F., Hultink, E. J., & Robben, H. S. (2004). The impact of market orientation, product advantage, and launch proficiency on new product performance and organizational performance. Journal of product innovation management, 21(2), 79-94.
Leonidou, C.L., Katsikeas, C.S., & Samiee, S. (2002). Marketing strategy determinants of export performance: a meta-analysis. Journal of Business Research, 55, 51-67.
Li, H. & Atuahene-Gima, K. (2001). Product Innovation Strategy and the Performance of New Technology Ventures in China. Academy of Management Journal, 44, 6, 1123-1134.
Li, Y., Zhao, Y., Tan, J., & Liu, Y. (2008). Moderating Effects of Entrepreneurial Orientation on Market Orientation-Performance Linkage: Evidence from Chinese Small Firms. Journal of Small Business Management, 46(1),113–133.
Lindell, M. K., & Whitney, D. J. (2001). Accounting for common method variance in cross-sectional research designs. Journal of Applied Psychology, 86(1), 114–121.
Little, T.D., Bovaird, J.A., & Widaman, K.F. (2006). On the Merits of Orthogonalizing Powered and Product Terms: Implications for Modeling Interactions Among Latent Variables. Structural Equation Modelling, 13(4), 497–519.
Lu, J. W. & Beamish, P. W. (2004). International Diversification and Firm Performance: The S-Curve Hypothesis. Academy of Management Journal, 47(4), 598-609.
Lumpkin, G. T. & 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.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135-172.
Meyer, A.D., Tsui, A.S., & Hinings, C.R. (1993). Configurational approaches to organizational analysis. Academy of Management Journal, 36(6), 1175–1195.
Miller, D. & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms. Strategic Management Journal, 3, 1-27.
Miller, D., & Shamsie, (1996). The resource-based view of the firm in two environments: the Hollywood film studios from 1936 to 1965. Academy of Management Journal, 39(3), 519–543.
Morgan, R. E. & Strong, C. A. (2003). Business performance and dimensions of strategic orientation. Journal of Business Research, 56(3), 163−176.
Murray, J.Y, Gao, G.Y., & Kotabe, M. (2011). Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages. Journal of Academy of Marketing Science, 39 (2), 252-269.



Nachum, L. (2003). Liability of Foreignness in Global Competition? Financial Service Affiliates in the City of London. Strategic Management Journal, 24, 1187–1208.
O’Reilly, C. A., & Tushman, M.L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185–206.
Peng, M.W., & Heath, P.S. (1996). The growth of the firm in planned economies in transition: institutions, organizations, and strategic choice. Academy of Management Review, 21 (2), 492–528.
Ping, R. A., Jr. (1995). A Parsimonious Estimation Technique for Interaction and Quadratic Latent Variables. Journal of Marketing Research, 32 (August), 336-47.
Podsakoff, P. M., MacKenzie, S. B., & Jeong-Yeon, L., Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88(5), 879–903.
Racela, O. C., Chaikittisilpa, C., & Thoumrungroje, A. (2007). Market orientation, international business relationships and perceived export performance. International Marketing Review, 24(2), 144-163.
Rauch, A., Wiklund, J., Lumpkin, G.T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761–787.
Renko, M., Carsrud, A., & Brännback, M. (2009). The effect of market orientation, entrepreneurial orientation and technological capability on innovativeness: A study of young biotechnology ventures in the United States and in Scandinavia. Journal of Small Business Management, 47(3), 331-369.
Short, J. C., Payne, G. T., & Ketchen, D. J. Jr. (2008). Research on Organizational Configurations: Past Accomplishments and Future Challenges. Journal of Management, 34(6), 1053-1079.
Voss, G. B., Sirdeshmukh, D., & Voss, Z. G. (2008). The Effects of Slack Resources and Environmental Threat on Product Exploration and Exploitation. Academy of Management Journal, 51(1), 147–164.
Wang, C.L. (2008). Entrepreneurial Orientation, Learning Orientation, and Firm Performance. Entrepreneurship: Theory and Practice, July, 635-657.
Webb, J.W., Ireland, R. D., Hitt, M. A., Kistruck, G. M., & Tihanyi, L. (2011).Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory. Journal of the Academy of Marking Science, 39, 537–554.
Weissman, S. R. (1990). Structural Adjustment in Africa: Insights from the Experiences of Ghana and Senegal. World Development, 18(12), 1621-1633.
Wiklund, J. & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: a configurational approach. Journal of Business Venturing, 20, 71-91.
Wiklund, J. & Shepherd, D.A. (2011). Where to From Here? EO-as-Experimentation, Failure, and Distribution of Outcomes. Entrepreneurship: Theory & Practice, 35(5), 925-946.
Wood, E., Khavul, S., Perez-Nordtvedt, L., Prakhya, S., Velarde Dabrowski, R., & Zheng, C. (2011). Strategic Commitment and Timing of Internationalization from Emerging Markets: Evidence from China, India, Mexico, and South Africa. Journal of Small Business Management, 49(2), 252–282.
World Bank Group (2011), http://www.doingbusiness.org/rankings, Accessed on 10th May 2011.
Wright, M., Filatotchev, I., Hoskisson, R.E., & Peng, M.M. (2005). Strategy Research in Emerging Economies: Challenging the Conventional Wisdom. Journal of Management Studies, 42(1), 1-33.
Zahra, S. A. & Garvis, D. M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility. Journal of Business Venturing, 15, 469-49.
Zahra, S.A., Ireland, R D., & Hitt, M. A. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925-950.
Published
2016-01-27
How to Cite
BOSO, Nathaniel et al. ENTREPRENEURIAL AND MARKET-ORIENTED ACTIVITIES, FINANCIAL CAPITAL, ENVIRONMENT TURBULENCE, AND EXPORT PERFORMANCE IN AN EMERGING ECONOMY. Journal of Small Business Strategy, [S.l.], v. 26, n. 1, p. 1-24, jan. 2016. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/575>. Date accessed: 08 dec. 2019.