Effects of interaction and entrepreneurial orientation on organizational performance: Insights into market driven and market driving

Research in marketing suggests that the notion of market driven and market driving is highly relevant for industrial markets. This study provides evidence that interaction and entrepreneurial orientations are linked to market-driven and market-driving approaches respectively. Further, this research investigates how these two orientations affect organizational performance. Based on a survey of Taiwan's electronics industry, this study indicates that both interaction and entrepreneurial orientations improve the exploitative and exploratory capabilities of an organization, which in turn contribute to superior organizational performance. The results of this study provide important theoretical and managerial implications for strategy development from both the market driven and market driving perspectives. ► Interaction and entrepreneurial orientation enhance organization performance by exploitative and exploratory capabilities. ► Interaction and entrepreneurial orientations improve exploitative and exploratory organizational capabilities. ► Exploitative and exploratory capabilities have different impacts on business performance metrics. ► Market orientation with integrated interaction and entrepreneurial orientation enhance market driven/market driving.