Do Market and Entrepreneurial Orientations Really Improve Firm Performance in SMEs from Developing Economies?

Abstract

Market and entrepreneurial orientations appear in the literature as two concepts that improve firm performance in SMEs from developing countries. However, there is a debate whether both orientations should be implemented simultaneously or individually to achieve a higher firm performance. Thus, this study, using a sample of 368 SMEs from Mexico, aims to identify the link between market orientation and entrepreneurial orientation, and their relationship with firm performance through and empirical study. Data were estimated by Partial Least Squares Structural Equation Modeling with the SmartPLS 4.0 software. Results show that both market orientation and entrepreneurial orientation have a positive influence on firm performance, particularly when the second one acts as a mediating variable.