Strategic orientations, hypercompetitive environment, and entrepreneurial alertness of small firms: evidence from the central region of Mexico

Abstract

Entrepreneurial alertness (EA) is an essential concept in entrepreneurial opportunities research. However, there is relatively little empirical evidence on its precursors. This study examines entrepreneurial orientation (EO) as a precursor to EA in small firms and the moderating influence of market orientation (MO) on that relationship. The study hypothesises that a hypercompetitive environment moderates the complementary effects of EO and MO on EA. The theoretically developed research model is tested using the survey data of 135 small manufacturing firms from the central region of Mexico. The results support a positive influence of EO on the components of EA concerning scanning and search, as well as evaluation and judgment, and indicate that the influence is stronger when MO is included under the conditions of a hypercompetitive environment. Interestingly, EO and MO do not positively influence the association and connection component of EA unless a hypercompetitive environment is present.