Author(s): Laddawn Lekmat
This paper investigates the relationship between entrepreneurial orientation (EO) and market orientation (MO) and how they affect product performance through the mediating effect of innovation. The data were collected from a sample of 706 community-based enterprises (CBEs) operating in Thailand. The results indicate that EO and MO have indirect impacts on product performance, via the mediating effect of innovation. EO strongly affects MO and innovation is a robust antecedent of product performance in small firms. This study has implications for the managerial practice of firms in Thailand, providing evidence in support of EO and MO as strategic tools for innovation and performance. Innovation as a vital mechanism for organizational growth is highly necessary for CBEs in Thailand, as an emerging economy. This study provides a clearer understanding of the relationship between those two strategic orientations and their benefits. This study considers all four factors of CBEs (EO, MO, innovation, and performance) in a single model. This study therefore provides new insights into how MO and EO simultaneously contribute to superior product performance through innovation.