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Qualitative and recent quantitative research indicates that market orientation exerts a positive effect on the performance of new entrepreneurial firms. However, the question whether in this context organizational culture, which has been identified as an important antecedent of market‐oriented behavior in established firms, also that shows a significant influence on the level of market orientation has so far been neglected. Using a sample of 143 new entrepreneurial firms, the present analysis shows empirically that market‐oriented behavior is in fact rooted in this type of culture. Thereby, organizational culture does exert an indirect influence on the performance of new entrepreneurial firms.

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