THE INTERPLAY BETWEEN ORIENTATIONS: ENTREPRENEURIAL, TECHNOLOGY AND CUSTOMER ORIENTATIONS IN SOFTWARE COMPANIES

Henri Hakala · Marko Kohtamäki

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Innovation and Knowledge Management Entrepreneurship Studies and Influences Business Strategies and Innovation

Abstract

This study examines the interplay between entrepreneurial, technology and customer orientations and company performance using data from 164 software companies. To conduct the analysis, the study applies PLS (partial least squares) modeling to understand the direct and indirect effects of entrepreneurial, customer and technology orientations on the performance of a software company. The results indicate that entrepreneurial and customer orientations directly affect performance, but, in this context, they do not support the view that a technology orientation directly enhances performance. More importantly, results suggest that an entrepreneurial orientation positively affects both customer and technology orientations. It appears that software companies need a capability to serve customers well, but also need to recognize new business opportunities from within their current customer relationships. The results suggest that to achieve high levels of performance, software companies need to balance the elements of entrepreneurial proactiveness and innovation with customer needs.

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