The effect of entrepreneurial orientation and competitive strategy on market orientation in order to improve performance and create sustainable competitive advantage

The study of entrepreneurial orientation concept and codifying a proper strategy to improve the performance of companies has a great importance as the companies have allocated more product market share to themselves by representing new and unique products according to customers’ requirements. The purpose of this study is to examine the impact of entrepreneurial orientation and competitive strategies on market orientation in order to improve the performance of the company and making stable competitive advantage in auto parts manufacturing companies which is applicable in terms of purpose and descriptive-correlation in terms of research method. Accordingly, in order to collect necessary information to test the hypothesis, a researcher-designed questionnaire containing 67 questions in 17 dimensions has been utilized according to Krejcie-Morgan’s table with a simple random sampling method in which 150 personnel of auto parts manufacturing companies among 250 people in Isfahan province were selected as the statistical population of the study. The structural equations model in Smart PLS software package was used to analyze the data and test the hypothesis. The results show that the direct effect of entrepreneurial orientation on market orientation is not significant. The independence and initiative of entrepreneurial orientation dimensions, cost leadership strategy, responsive market orientation, financial performance and scarce resources have also had the most weight in making main variables of the research for parts manufacturers. So, parts manufacturing companies can help their survival and growth in the competitive area by increasing the entrepreneurial morale in organization level and choosing proper strategies in line with the customers’ needs.