Abstract
Competing views exist on the relative role of market orientation and political networking on new venture performance. Although researchers holding market orientation logics argues market orientation foster customer values and thus new ventures performance, critics with government domination logics have indicated that political networking can play a substantive role in transition economy because of under-development formal institution and the existence of dysfunctional competition. This debate can be addressed by introducing institutional pluralism perspective and including dysfunctional competition and political networking as moderators of the relationship between market orientation and new venture performance. Our analysis of 209 new ventures in China supported a three-way interaction and shows that when in a low-level dysfunctional competition context, political networking strengthens the positive effect of market orientation on new ventures performance, by contrast, in a high-level dysfunctional competition context, political networking weakens the positive effect of market orientation on new ventures performance.
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