Entrepreneurial orientation and innovation performance in MSMEs. The moderating role of strategic orientation

Abstract

This study aimed to assess if the effect of entrepreneurial orientation on innovative performance is moderated by the type of strategic orientation followed by MSMEs. The study employs a sequential hierarchical regression model. The results showed that the positive effect of the entrepreneurial orientation on innovative performance was greater in MSMEs paying attention to environmental trends, taking advantage of market and product opportunities, and focusing on operational flexibility (prospectors), than in those MSMEs directing their strategy on operational efficiency, cost control, and maintenance of the product portfolio for their customers (defenders).