Entrepreneurial Orientation, Interaction Orientation, and Innovation Performance: A Model of Moderated Mediation

Abstract

This research explored the relationships between entrepreneurial orientation (EO), interaction orientation (IO), and innovation performance based on resource-based theory. We used two market approaches (market-driving and market-driven) to test our research model. We collected data from the responses of 209 corporations in China. Our findings indicated that both EO and IO positively affected knowledge combination capability (KCC), which contributed to innovation performance. The results indicated that organizational collectivism moderated the link between EO and KCC. It also moderated the mediation effect of EO on firm’s innovation performance by KCC. Interestingly, we found that organizational collectivism moderated the link between IO and KCC and also moderated the mediation of IO on innovation performance by KCC. Our research contributes to the field of strategic orientation and suggests that managers should pay attention to the two market approaches and organizational culture, which can improve innovation performance. Furthermore, this research offers theoretical and practical implications to firm’s innovation capability.