Effect of Entrepreneurial Orientation and Market Orientation on Financial Performance of Tehran City's Private Sport Clubs

The purpose of this study was to determine the effect of entrepreneurial orientation and market orientation on financial performance of Tehran city's private sport clubs. In this correlational study (structural equation modeling), 224 private sport clubs were selected using relative stratified random sampling method from 513 sport clubs of Tehran city, and their managers completed entrepreneurial orientation scale (Hughes & Morgan, 2007), and market orientation scale (Narver & Slater, 1990). Data were analyzed using Pearson correlation coefficient and structural equation modeling at 95% confidence level. Basis on the results, the dimensions and overall level of entrepreneurial orientation (risk-taking, innovation, proactiveness, competitive aggressiveness, autonomy) and market orientation (customer orientation, competitor orientation, inter-functional coordination) had significant, positive and moderate to strong relationships with the financial performance of private sports clubs. Entrepreneurial orientation directly and indirectly through market orientation had a significant and positive effect on the financial performance, and entrepreneurial orientation and market orientation explain 58% of the variance in financial performance. According to the findings, entrepreneurial orientation, especially the orientation toward innovation and proactiveness, accompany with market orientation, especially customer orientation, can enhance the financial performance of the private sports clubs