Complementary Effects of Entrepreneurial Orientation, Market Orientation and Network Ties on Performance of Entrepreneurial Firms in a Developing Economy

Abstract

Entrepreneurial orientation (EO), market orientation (MO) and network ties are typically modelled as separate antecedents of performance. This research argues that the boundary conditions for such models are under-explored, as is their applicability to developing economy settings. Accordingly, this study develops a model that argues that the performance benefits of EO and MO are complementary, and varies across levels of social and business network ties. Using primary data gathered from 203 entrepreneurial firms operating in Ghana, this study finds that the performance benefits of EO and MO are greatest when both activities are highest. The results also indicate that performance outcomes increase when high levels of EO, MO, and networks of social and business ties are aligned in entrepreneurial firms operating in developing economies.