Perceptions and contradictions: a study of market orientation and innovation among Cuban entrepreneurs

Abstract

PurposeThis study aims to examine whether market orientation or innovation is a more significant mediator between an entrepreneur’s culture and perceived success in Cuba, where innovation is highly regarded because of economic challenges and US embargoes, but doubts persist about market orientation because of its socialist economy.Design/methodology/approachHavana entrepreneurs were surveyed on culture, market orientation and innovation. Data were analyzed using structural equation modeling with the partial least squares approach in SmartPLS 4.FindingsThe results showed partial mediation for both market orientation and innovation. Culture significantly affects performance directly. Surprisingly, a less market-oriented culture enhances performance, with innovation acting as the stronger mediator, despite the inverse relationship between market orientation and innovation.Research limitations/implicationsThe limitations include reliance on self-reported measures, lack of objective performance verification and a narrow focus on entrepreneurs rather than clients. Despite these constraints, the study provides valuable exploratory insights into Cuba’s closed economy, following the principle of being “approximately right than exactly wrong.”Practical implicationsThe findings confirm the positive impact of Cubans’ innovative spirit on performance but reveal a contradiction: less market-oriented cultures perceive themselves as market-oriented and perform better. This misperception suggests the need for further investigation and training to promote market-oriented business culture. Collaboration with international business schools may be necessary, as this distortion could harm customer satisfaction.Originality/valueThe originality of the research lies in that, to the best of the authors’ knowledge, this is the first study on Cuban entrepreneurs’ market orientation. It has the value to illustrate how socialists’ ideology can contradict assumed theoretical established approaches about market functioning.