The Effect of Market Orientation, Entrepreneurial Orientation, and Innovation on Organizational Performance
Date
2018-08-29
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
ORCID
Type
Thesis
Degree Level
Doctoral
Abstract
The practice of pharmacy in Canada is evolving, as pharmacists are taking on expanded roles in the healthcare system (Canadian Pharmacists Association 2016). These expanded pharmacy services are presenting professional practice and business opportunities. Given a pharmacy’s dual objectives to serve the best health interests of patients while making a profit (Perepelkin and Dobson 2010), the expansion of pharmacy services presents a unique opportunity.
This thesis explores how strategic orientations influence pharmacies’ innovative tendencies and performance. The pilot study explores the influence of market and entrepreneurial orientations on financial and non-financial performance among 70 Saskatchewan community pharmacies. Market and entrepreneurial orientation were correlated, market orientation’s effect on financial performance was positive and direct, and entrepreneurial orientation’s effect on non-financial performance was positive and direct. The results of the pilot study along with semi-structured interviews with subject-matter experts were used to inform the hypotheses of a western Canadian study.
Interviews with eight community pharmacy subject-matter experts were thematically analyzed and showed support for the importance of market and entrepreneurial orientation in achieving both professional and business objectives. Additionally, subject-matter experts provided insight into how pharmacies measure both professional and business performance.
In the western Canadian study of 259 community pharmacies, it was found that market orientation was positively correlated with entrepreneurial orientation and had a positive and direct effect on improved health outcomes. Entrepreneurial orientation had positive and direct effects on business innovations, expanded service innovations, and financial performance. Expanded service innovations had a positive and direct effect on improved health outcomes and improved health outcomes had a direct positive effect on financial performance.
Synthesizing the results of the three studies, it was evident that strategic orientations work together to directly improve performance and contribute to innovations that also enhance performance. Given the duality of community pharmacy objectives and the expanded scope of practice, employing both a market and entrepreneurial orientation may be a well-suited organizational strategy.
Description
Keywords
Market orientation, Entrepreneurial orientation, Strategic orientations, Innovation, Business, Management, Strategy, Performance, Community pharmacy
Citation
Degree
Doctor of Philosophy (Ph.D.)
Department
Pharmacy and Nutrition
Program
Pharmacy